Question 1

Which of the following is true regarding normal balances of accounts?

Accepted Answer

A)  All accounts have a normal debit balance. 
B)  All expense accounts have a normal negative balance. 
C)  Accounts that have a normal debit balance will only have debit entries, never credit entries. 
D)  The normal balance appears on the side of the account that also receives increase entries. 
A)  All accounts have a normal debit balance. 
B)  All expense accounts have a normal negative balance. 
C)  Accounts that have a normal debit balance will only have debit entries, never credit entries. 
D)  The normal balance appears on the side of the account that also receives increase entries.

Question 2

Journalize the entries to correct the following errors:

Accepted Answer

The answer of Journalize the entries to correct the following...

Question 3

Which side of the account increases a cash account?

Accepted Answer

A)  credit 
B)  neither a debit or a credit 
C)  debit 
D)  both a debit and a credit 
A)  credit 
B)  neither a debit or a credit 
C)  debit 
D)  both a debit and a credit

Question 4

Dividends decrease retained earnings and are listed on the income statement as a deduction from revenue.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a correct rule of debits and credits?

Accepted Answer

A)  assets, expenses, and dividends are increased by debits 
B)  assets are decreased by credits and have a normal debit balance 
C)  liabilities, revenues, and retained earnings are increased by credits 
D)  the normal balance for revenues and expenses is a credit 
A)  assets, expenses, and dividends are increased by debits 
B)  assets are decreased by credits and have a normal debit balance 
C)  liabilities, revenues, and retained earnings are increased by credits 
D)  the normal balance for revenues and expenses is a credit

Question 6

The accounts payable account is listed in the chart of accounts as an asset.

Accepted Answer

A) True 
 B)False

Question 7

The recording of cash receipts to the cash account will be done by debiting the account.

Accepted Answer

A) True 
 B)False

Question 8

Of the following, which will determine if the accounting equation is in balance?

Accepted Answer

A)  journal entry 
B)  income statement 
C)  trial balance 
D)  account reconciliation 
A)  journal entry 
B)  income statement 
C)  trial balance 
D)  account reconciliation

Question 9

Which statement(s) concerning cash is (are) true?

Accepted Answer

A)  cash will always have more debits than credits 
B)  cash will never have a credit balance 
C)  cash is increased by debiting 
D)  all of the above 
A)  cash will always have more debits than credits 
B)  cash will never have a credit balance 
C)  cash is increased by debiting 
D)  all of the above

Question 10

The classification and normal balance of the dividends account is

Accepted Answer

A)  an expense with a credit balance 
B)  an expense with a debit balance 
C)  a liability with a credit balance 
D)  a stockholders' equity item with a debit balance 
A)  an expense with a credit balance 
B)  an expense with a debit balance 
C)  a liability with a credit balance 
D)  a stockholders' equity item with a debit balance

Question 11

All nine transactions for Dalton Survey Company for September, the first month of operations, are recorded in the following T accounts:
           Indicate the following for each debit and each credit:
   Present your answers in the following form:

Accepted Answer

The answer of All nine transactions for Dalton Survey Company...

Question 12

In which order are the accounts listed in the chart of accounts?

Accepted Answer

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

Question 13

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.

Accepted Answer

A) True 
 B)False

Question 14

Accounts payable are accounts that you expect will be paid to you.

Accepted Answer

A) True 
 B)False

Question 15

A chart of accounts is

Accepted Answer

A)  the same as a balance sheet 
B)  usually a listing of accounts in alphabetical order 
C)  usually a listing of accounts in financial statement order 
D)  used in place of a ledger 
A)  the same as a balance sheet 
B)  usually a listing of accounts in alphabetical order 
C)  usually a listing of accounts in financial statement order 
D)  used in place of a ledger

Question 16

Consuming goods and services in the process of generating revenues results in expenses.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

Which of the following is true regarding normal balances of accounts?

Journalize the entries to correct the following errors:

Which side of the account increases a cash account?

Dividends decrease retained earnings and are listed on the income statement as a deduction from revenue.

Which of the following is not a correct rule of debits and credits?

The accounts payable account is listed in the chart of accounts as an asset.

The recording of cash receipts to the cash account will be done by debiting the account.

Of the following, which will determine if the accounting equation is in balance?

Which statement(s) concerning cash is (are) true?

The classification and normal balance of the dividends account is

All nine transactions for Dalton Survey Company for September, the first month of operations, are recorded in the following T accounts: Indicate the following for each debit and each credit: Present your answers in the following form:

In which order are the accounts listed in the chart of accounts?

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.

Accounts payable are accounts that you expect will be paid to you.

A chart of accounts is

Consuming goods and services in the process of generating revenues results in expenses.

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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