Question 1

If the two totals of a trial balance are not equal, it could be due to

Accepted Answer

A)  failure to record a transaction 
B)  recording the same erroneous amount for both the debit and the credit parts of a transaction 
C)  an error in determining the account balances, such as a balance being incorrectly computed 
D)  recording the same transaction more than once 
A)  failure to record a transaction 
B)  recording the same erroneous amount for both the debit and the credit parts of a transaction 
C)  an error in determining the account balances, such as a balance being incorrectly computed 
D)  recording the same transaction more than once

Question 2

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

Accepted Answer

A) True 
 B)False

Question 3

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Accepted Answer

A)  Cash, debit; Wages Expense, credit 
B)  Wages Payable, debit; Wages Expense, credit 
C)  Wages Expense, debit, Cash, credit 
D)  Cash, debit; Wages Payable, credit 
A)  Cash, debit; Wages Expense, credit 
B)  Wages Payable, debit; Wages Expense, credit 
C)  Wages Expense, debit, Cash, credit 
D)  Cash, debit; Wages Payable, credit

Question 4

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 5

Which of the following group of accounts are increased with a debit?

Accepted Answer

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

Question 6

The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following will decrease retained earnings?

Accepted Answer

A)  Supplies are purchased on account. 
B)  Dividends are declared and paid. 
C)  Cash is received from customers. 
D)  Payment is made on an accounts payable. 
A)  Supplies are purchased on account. 
B)  Dividends are declared and paid. 
C)  Cash is received from customers. 
D)  Payment is made on an accounts payable.

Question 8

The unearned revenues account is an example of a liability.

Accepted Answer

A) True 
 B)False

Question 9

A group of related accounts that make up a complete unit is called a trial balance.

Accepted Answer

A) True 
 B)False

Question 10

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equal.

Accepted Answer

A) True 
 B)False

Question 11

A debit may signify a(n)

Accepted Answer

A)  decrease in an asset account 
B)  decrease in a liability account 
C)  increase in the retained earnings account 
D)  decrease in the dividends account 
A)  decrease in an asset account 
B)  decrease in a liability account 
C)  increase in the retained earnings account 
D)  decrease in the dividends account

Question 12

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

Accepted Answer

A)  posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted 
B)  failure to record a transaction or to post a transaction 
C)  recording the same transaction more than once 
D)  recording the same erroneous amount for both the debit and the credit parts of a transaction 
A)  posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted 
B)  failure to record a transaction or to post a transaction 
C)  recording the same transaction more than once 
D)  recording the same erroneous amount for both the debit and the credit parts of a transaction

Question 13

Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions. 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 Listed below are accounts to use for...

Question 14

Liabilities are debts owed by the business entity.

Accepted Answer

A) True 
 B)False

Question 15

The classification and normal balance of the accounts payable account is

Accepted Answer

A)  an asset with a credit balance 
B)  a liability with a credit balance 
C)  an asset with a debit balance 
D)  an expense with a debit balance 
A)  an asset with a credit balance 
B)  a liability with a credit balance 
C)  an asset with a debit balance 
D)  an expense with a debit balance

Question 16

The normal balance of revenue accounts is a credit.

Accepted Answer

A) True 
 B)False

Question 17

A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should

Accepted Answer

A)  make no entry until the cash is received 
B)  Cash, debit; Accounts Receivable, credit 
C)  Cash, debit; Fees Earned, credit 
D)  Accounts Receivable, debit; Fees Earned, credit 
A)  make no entry until the cash is received 
B)  Cash, debit; Accounts Receivable, credit 
C)  Cash, debit; Fees Earned, credit 
D)  Accounts Receivable, debit; Fees Earned, credit

Question 18

On August 30th JumpStart pays numerous bills which include:
Payment to the landlord for August rent - $2,300
Payment to the Gas & Electric Company for August's bill - $525
Payment of employee wages for the last half of August - $1,750
Payment of shopping center's parking lot cleaning fee - $275
Journalize these payments as one compound journal entry.

Accepted Answer

The answer of On August 30th JumpStart pays numerous bills...

Question 19

Retained earnings will be reduced by all of the following except

Accepted Answer

A)  revenues 
B)  expenses 
C)  dividends 
D)  all of these 
A)  revenues 
B)  expenses 
C)  dividends 
D)  all of these

Question 20

Retained earnings will be reduced by the amount in the dividends account.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

If the two totals of a trial balance are not equal, it could be due to

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

An account is said to have a debit balance if

Which of the following group of accounts are increased with a debit?

The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.

Which of the following will decrease retained earnings?

The unearned revenues account is an example of a liability.

A group of related accounts that make up a complete unit is called a trial balance.

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equal.

A debit may signify a(n)

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

Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions. 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.

Liabilities are debts owed by the business entity.

The classification and normal balance of the accounts payable account is

The normal balance of revenue accounts is a credit.

A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should

Retained earnings will be reduced by all of the following except

Retained earnings will be reduced by the amount in the dividends account.

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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