Question 1

Accounts are records of increases and decreases in individual financial statement items.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following entries records the payment of an account payable?

Accepted Answer

A)  debit Cash; credit Accounts Payable 
B)  debit Accounts Receivable; credit Cash 
C)  debit Cash; credit Supplies Expense 
D)  debit Accounts Payable; credit Cash 
A)  debit Cash; credit Accounts Payable 
B)  debit Accounts Receivable; credit Cash 
C)  debit Cash; credit Supplies Expense 
D)  debit Accounts Payable; credit Cash D

Question 3

On October 30th, JumpStart paid its only stockholder, Damien Lawson, a $3,300 cash dividend. Journalize this event.

Accepted Answer

The answer of On October 30th, JumpStart paid its only...

Question 4

The process of transferring the debits and credits from the journal entries to the accounts is known as "updating the accounts".

Accepted Answer

A) True 
 B)False

Question 5

Normal balances appear on the side that increases the account balance.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following errors 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 Accounts Receivable. 
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 Accounts Receivable. 
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

Discuss and describe how errors in accounts can be found.

Accepted Answer

1) through audit pro

Question 8

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.   Prepare a trial balance. The total of the debits is

Accepted Answer

A)  $13,900 
B)  $11,200 
C)  $12,700 
D)  $ 9,700 
A)  $13,900 
B)  $11,200 
C)  $12,700 
D)  $ 9,700

Question 9

McMann Company has a condensed income statement as shown::   Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

Accepted Answer

A)  (17,000), (11.3%) 
B)  (15,500), (10.3%) 
C)  ($18,000), (10.9%) 
D)  ($15,500), (9.4%) 
A)  (17,000), (11.3%) 
B)  (15,500), (10.3%) 
C)  ($18,000), (10.9%) 
D)  ($15,500), (9.4%)

Question 10

Revenues are equal to the difference between cash receipts and cash payments.

Accepted Answer

A) True 
 B)False

Question 11

A credit balance in which of the following accounts would indicate a likely error?

Accepted Answer

A)  Fees Earned 
B)  Salary Expense 
C)  Retained Earnings 
D)  Accounts Payable 
A)  Fees Earned 
B)  Salary Expense 
C)  Retained Earnings 
D)  Accounts Payable

Question 12

A debit signifies a decrease in

Accepted Answer

A)  assets 
B)  expenses 
C)  dividends 
D)  revenues 
A)  assets 
B)  expenses 
C)  dividends 
D)  revenues

Question 13

The verification that the total dollar amount of the debits equals the total dollar amount of the credits in the ledger is called a

Accepted Answer

A)  ledger 
B)  trial balance 
C)  account 
D)  balance sheet 
A)  ledger 
B)  trial balance 
C)  account 
D)  balance sheet

Question 14

The chart of accounts is designed to

Accepted Answer

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

Question 15

Which of the following entries records the receipt of cash from patients on account?

Accepted Answer

A)  Accounts Payable, debit; Fees Earned, credit 
B)  Accounts Receivable, debit; Fees Earned, credit 
C)  Accounts Receivable, debit; Cash, credit 
D)  Cash, debit; Accounts Receivable, credit 
A)  Accounts Payable, debit; Fees Earned, credit 
B)  Accounts Receivable, debit; Fees Earned, credit 
C)  Accounts Receivable, debit; Cash, credit 
D)  Cash, debit; Accounts Receivable, credit

Question 16

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

Accepted Answer

A) True 
 B)False

Question 17

On January 1, 2011, Cary Parsons established Cary's Catering Service. Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions that occurred during the first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.

Accepted Answer

The answer of On January 1, 2011, Cary Parsons established...

Question 18

What is the best explanation for this journal entry?

Accepted Answer

A)  Purchased supplies with cash. 
B)  Returned supplies previously purchased. 
C)  Purchased supplies on account. 
D)  Paid accounts payable. 
A)  Purchased supplies with cash. 
B)  Returned supplies previously purchased. 
C)  Purchased supplies on account. 
D)  Paid accounts payable.

Question 19

All of the following accounts are increased with a debit except

Accepted Answer

A)  Unearned Revenues 
B)  Land 
C)  Accounts Receivable 
D)  Cash 
A)  Unearned Revenues 
B)  Land 
C)  Accounts Receivable 
D)  Cash

Question 20

An account has three parts to it; a title, an increase side, and a decrease side.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

Accounts are records of increases and decreases in individual financial statement items.

Which of the following entries records the payment of an account payable?

On October 30th, JumpStart paid its only stockholder, Damien Lawson, a $3,300 cash dividend. Journalize this event.

The process of transferring the debits and credits from the journal entries to the accounts is known as "updating the accounts".

Normal balances appear on the side that increases the account balance.

Which of the following errors would cause the trial balance totals to be unequal?

Discuss and describe how errors in accounts can be found.

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances. Prepare a trial balance. The total of the debits is

McMann Company has a condensed income statement as shown:: Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

Revenues are equal to the difference between cash receipts and cash payments.

A credit balance in which of the following accounts would indicate a likely error?

A debit signifies a decrease in

The verification that the total dollar amount of the debits equals the total dollar amount of the credits in the ledger is called a

The chart of accounts is designed to

Which of the following entries records the receipt of cash from patients on account?

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

What is the best explanation for this journal entry?

All of the following accounts are increased with a debit except

An account has three parts to it; a title, an increase side, and a decrease side.

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

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