Question 1

Revenue accounts are increased by credits.

Accepted Answer

A) True 
 B)False

Question 2

An account is said to have a debit balance if

Accepted Answer

A)  the amount of the debits exceeds the amount of the credits 
B)  there are more entries on the debit side than on the credit side 
C)  there are more entries on the credit side than on the debit side 
D)  the first entry of the accounting period was posted on the debit side 
A)  the amount of the debits exceeds the amount of the credits 
B)  there are more entries on the debit side than on the credit side 
C)  there are more entries on the credit side than on the debit side 
D)  the first entry of the accounting period was posted on the debit side

Question 3

Liabilities are debts owed by the business entity.

Accepted Answer

A) True 
 B)False

Question 4

That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a(n):

Accepted Answer

A)  chart of accounts 
B)  trial balance 
C)  income statement 
D)  balance sheet 
A)  chart of accounts 
B)  trial balance 
C)  income statement 
D)  balance sheet

Question 5

Postings made to standard account forms show a new balance after each entry.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following errors,each considered individually,would cause the trial balance totals to be unequal?

Accepted Answer

A)  A transaction was not posted. 
B)  A payment of $67 for insurance was posted as a debit of $76 to Prepaid Insurance and a credit of $76 to Cash. 
C)  A payment of $4,450 to a creditor was posted as a debit of $4,500 to Accounts Payable and a credit of $450 to Cash. 
D)  Cash received from customers on account was posted as a debit of $720 to Cash and a credit of $720 to Accounts Payable. 
A)  A transaction was not posted. 
B)  A payment of $67 for insurance was posted as a debit of $76 to Prepaid Insurance and a credit of $76 to Cash. 
C)  A payment of $4,450 to a creditor was posted as a debit of $4,500 to Accounts Payable and a credit of $450 to Cash. 
D)  Cash received from customers on account was posted as a debit of $720 to Cash and a credit of $720 to Accounts Payable.

Question 7

The double-entry accounting system records each transaction twice.

Accepted Answer

A) True 
 B)False

Question 8

Accounts in the ledger are usually maintained in alphabetical order.

Accepted Answer

A) True 
 B)False

Question 9

Prepare a trial balance,listing the following accounts in proper sequence.The accounts (all normal balances)were taken from the ledger of Sophie Designs Co.on April 30.

Accepted Answer

The answer of Prepare a trial balance,listing the following accounts...

Question 10

What is the posting reference that will be found in the prepaid insurance account?

Accepted Answer

A)  11 
B)  15 
C)  3 
D)  13 
A)  11 
B)  15 
C)  3 
D)  13

Question 11

Dividends decrease stockholders' equity and are listed on the income statement as a deduction from revenue.

Accepted Answer

A) True 
 B)False

Question 12

All stockholders' equity accounts record increases to the accounts with credits.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following will increase stockholders' equity?

Accepted Answer

A)  ​expenses > revenues 
B)  ​the company pays dividends 
C)  ​revenues > expenses 
D)  ​cash is received from customers on account 
A)  ​expenses > revenues 
B)  ​the company pays dividends 
C)  ​revenues > expenses 
D)  ​cash is received from customers on account

Question 14

Transactions are listed in the journal chronologically.

Accepted Answer

A) True 
 B)False

Question 15

The normal balance of an expense account is a credit.

Accepted Answer

A) True 
 B)False

Question 16

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Accepted Answer

A) True 
 B)False

Question 17

McNally Industries has a condensed income statement as shown. ​
  Using horizontal analysis,calculate the amount and percent change for sales.Round percentages to one decimal place.

Accepted Answer

A)  $32,500,19.6% 
B)  $(32,500),(19.6)% 
C)  $32,500,16.4% 
D)  $(32,500),(16.4)% 
A)  $32,500,19.6% 
B)  $(32,500),(19.6)% 
C)  $32,500,16.4% 
D)  $(32,500),(16.4)%

Question 18

Which of the following types of accounts have a normal credit balance?

Accepted Answer

A)  assets and liabilities 
B)  liabilities and expenses 
C)  revenues and common stock 
D)  common stock and dividends 
A)  assets and liabilities 
B)  liabilities and expenses 
C)  revenues and common stock 
D)  common stock and dividends

Question 19

The chart of accounts is designed to

Accepted Answer

A)  alphabetize the accounts to make reading easier for financial statement users 
B)  organize accounts in order of dollar amount to simplify the accounting information for users 
C)  summarize the transactions and determine ending account balances 
D)  meet the information needs of a company's managers and other users of its financial statements 
A)  alphabetize the accounts to make reading easier for financial statement users 
B)  organize accounts in order of dollar amount to simplify the accounting information for users 
C)  summarize the transactions and determine ending account balances 
D)  meet the information needs of a company's managers and other users of its financial statements

Question 20

Which of the following groups of accounts have a normal debit balance?

Accepted Answer

A)  revenues,liabilities,and stockholders' equity 
B)  stockholders' equity and assets 
C)  liabilities and stockholders' equity 
D)  assets and expenses 
A)  revenues,liabilities,and stockholders' equity 
B)  stockholders' equity and assets 
C)  liabilities and stockholders' equity 
D)  assets and expenses

Exam 2: Analyzing Transactions

Revenue accounts are increased by credits.

An account is said to have a debit balance if

Liabilities are debts owed by the business entity.

That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a(n):

Postings made to standard account forms show a new balance after each entry.

Which of the following errors,each considered individually,would cause the trial balance totals to be unequal?

The double-entry accounting system records each transaction twice.

Accounts in the ledger are usually maintained in alphabetical order.

Prepare a trial balance,listing the following accounts in proper sequence.The accounts (all normal balances)were taken from the ledger of Sophie Designs Co.on April 30.

What is the posting reference that will be found in the prepaid insurance account?

Dividends decrease stockholders' equity and are listed on the income statement as a deduction from revenue.

All stockholders' equity accounts record increases to the accounts with credits.

Which of the following will increase stockholders' equity?

Transactions are listed in the journal chronologically.

The normal balance of an expense account is a credit.

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

McNally Industries has a condensed income statement as shown. ​ Using horizontal analysis,calculate the amount and percent change for sales.Round percentages to one decimal place.

Which of the following types of accounts have a normal credit balance?

The chart of accounts is designed to

Which of the following groups of accounts have a normal debit balance?

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

McNally Industries has a condensed income statement as shown. Using horizontal analysis,calculate the amount and percent change for sales.Round percentages to one decimal place.