Question 1

Net income will result when

Accepted Answer

A)  revenues (credits) > expenses (debits) 
B)  revenues (debits) > expenses (credits) 
C)  expenses (credits) = revenues (debits) 
D)  revenues (credits) = expenses (debits) 
A)  revenues (credits) > expenses (debits) 
B)  revenues (debits) > expenses (credits) 
C)  expenses (credits) = revenues (debits) 
D)  revenues (credits) = expenses (debits)

Question 2

$\begin{array}{|l|l|l|l|l|l|}
\hline \text { March } & 10 & \text { Accounts Payable } & & 800 & \
\hline & & \text { Cash } & & & 800 \
\hline & & \text { Paid creditors on account } & & & \
\hline & & & & & \
\hline
\end{array}$ What effect does this journal entry have on the accounts?

Accepted Answer

A)  Decrease accounts payable, increase cash 
B)  Increase cash, decrease accounts payable 
C)  Increase accounts payable, increase cash 
D)  Decrease accounts payable, decrease cash 
A)  Decrease accounts payable, increase cash 
B)  Increase cash, decrease accounts payable 
C)  Increase accounts payable, increase cash 
D)  Decrease accounts payable, decrease cash

Question 3

Match between columns
                        Premises: Notes Payable
Mortgage Payable
Rent Revenue
Unearned Income
Drawing
Capital
Accounts Receivable
Automobiles
Utility Expense

Accepted Answer

The Answer of Credit and Debit is...

Question 4

Depending on the account title, the right side of the account is referred to as the credit side.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Prepare a journal entry on October 12 for the fees earned on account, $14,600.

Accepted Answer

\(\begin{array}{lll}
\text { O

Question 7

The chart of account for the Corning Company includes some of the following accounts: $\begin{array}{|l|l|}
\hline \text { Account Name } & \text { Account Number } \
\hline \text { Cash } & 11 \
\hline \text { Accounts Receivable } & 13 \
\hline \text { Prepaid Insurance } & 15 \
\hline \text { Accounts Payable } & 21 \
\hline \text { Unamed Revenue } & 24 \
\hline \text { Corning, Capital } & 31 \
\hline \text { Corning, Drawing } & 32 \
\hline \text { Fees Earned } & 41 \
\hline \text { Salaries Expense } & 54 \
\hline \text { Rent Expense } & 56 \
\hline & \
\end{array}$ On the journal page 3, the following transaction was found:
$\begin{array} { | l | l | l | } 
\hline \text { Prepaid Insuranse } & 1,530 & \
\hline \text { Cash } & & 1,530 \
\hline & &
\end{array}$ What is the post reference that will be found on the cash account?

Accepted Answer

A)  11 
B)  15 
C)  3 
D)  None 
A)  11 
B)  15 
C)  3 
D)  None

Question 8

Owner's capital will be reduced by the amount in the drawing account.

Accepted Answer

A) True 
 B)False

Question 9

For a month's transactions for a typical medium-sized business, the salary expense account is likely to have only credit entries.

Accepted Answer

A) True 
 B)False

Question 10

Office supplies purchased by Ari's Alarm Service on account were returned. Which of the following entries for Ari's Alarm Service records this transaction?

Accepted Answer

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

Question 11

On January 12th, JumpStart Co. purchased $870 in office supplies.
(a) Journalize this transaction as if JumpStart paid cash.
(b) (1) Journalize this transaction as if JumpStart placed it on account.
(b) (2) On January 18th, JumpStart pays the amount due. Journalize this event.

Accepted Answer

@#IMG-DLM&_TB2085_00_TB2085_00

Question 12

On January 1, 2010, Cary Parsons established a catering service. Listed below are accounts to use for transactions (a) through (e), each identified by a number. Following this list are the transactions that occurred in Parsons' first month of operation. 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

@#IMG-DLM&_TB2085_00

Question 13

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 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 14

Randomly listed below are the steps for preparing a trial balance:   What is the proper order of these steps?

Accepted Answer

A)  (3), (2), (4), (1) 
B)  (2), (3), (4), (1) 
C)  (3), (2), (1), (4) 
D)  (4), (3), (2), (1) 
A)  (3), (2), (4), (1) 
B)  (2), (3), (4), (1) 
C)  (3), (2), (1), (4) 
D)  (4), (3), (2), (1)

Question 15

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Accepted Answer

A) True 
 B)False

Question 16

The chart of accounts should be the same for each business.

Accepted Answer

A) True 
 B)False

Question 17

Transactions are listed in the journal chronologically.

Accepted Answer

A) True 
 B)False

Question 18

McMann Company has a condensed income statement as shown:: $$\begin{array} { | l | l | l | } 
\hline & \mathbf { 2 1 4 } & \mathbf { 2 0 1 3 } \
\hline \text { Sales } & \$ 198,000 & \$ 165,500 \
\hline \text { Total operating expenses } & 163,000 & 147,500 \
\hline \text { Net income } & 35,000 & 18,000 \
\hline & & \
\end{array}$$ Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

Accepted Answer

A)  $32,500, 19.6% 
B)  $18,000, 10.9% 
C)  $35,000, 17.7% 
D)  $17,000, 9.4% 
A)  $32,500, 19.6% 
B)  $18,000, 10.9% 
C)  $35,000, 17.7% 
D)  $17,000, 9.4%

Question 19

Which of the following owner's equity accounts follows the same debit and credit rules as liabilities?

Accepted Answer

A)  Expense accounts only 
B)  Drawing accounts only 
C)  Revenues accounts only 
D)  Expenses and drawing accounts 
A)  Expense accounts only 
B)  Drawing accounts only 
C)  Revenues accounts only 
D)  Expenses and drawing accounts

Question 20

All of the following occur with a double-entry accounting system except:

Accepted Answer

A)  The accounting equation remains in balance. 
B)  The sum of all debits is always equal to the sum of all credits in each journal entry. 
C)  Each business transaction will have only two entries. 
D)  Every transaction affects at least two accounts. 
A)  The accounting equation remains in balance. 
B)  The sum of all debits is always equal to the sum of all credits in each journal entry. 
C)  Each business transaction will have only two entries. 
D)  Every transaction affects at least two accounts.

Net income will result when

March 10 Accounts Payable 800 Cash 800 Paid creditors on account What effect does this journal entry have on the accounts?

Depending on the account title, the right side of the account is referred to as the credit side.

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

Prepare a journal entry on October 12 for the fees earned on account, $14,600.

Owner's capital will be reduced by the amount in the drawing account.

For a month's transactions for a typical medium-sized business, the salary expense account is likely to have only credit entries.

Office supplies purchased by Ari's Alarm Service on account were returned. Which of the following entries for Ari's Alarm Service records this transaction?

On January 12th, JumpStart Co. purchased $870 in office supplies. (a) Journalize this transaction as if JumpStart paid cash. (b) (1) Journalize this transaction as if JumpStart placed it on account. (b) (2) On January 18th, JumpStart pays the amount due. Journalize this event.

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

Randomly listed below are the steps for preparing a trial balance: What is the proper order of these steps?

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

The chart of accounts should be the same for each business.

Transactions are listed in the journal chronologically.

McMann Company has a condensed income statement as shown:: Sales \ 198,000 \ 165,500 Total operating expenses 163,000 147,500 Net income 35,000 18,000 Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

Which of the following owner's equity accounts follows the same debit and credit rules as liabilities?

All of the following occur with a double-entry accounting system except:

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Analyzing Transactions

Net income will result when

March 10 Accounts Payable 800 Cash 800 Paid creditors on account What effect does this journal entry have on the accounts?

Depending on the account title, the right side of the account is referred to as the credit side.

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

Prepare a journal entry on October 12 for the fees earned on account, $14,600.

Owner's capital will be reduced by the amount in the drawing account.

For a month's transactions for a typical medium-sized business, the salary expense account is likely to have only credit entries.

Office supplies purchased by Ari's Alarm Service on account were returned. Which of the following entries for Ari's Alarm Service records this transaction?

On January 12th, JumpStart Co. purchased $870 in office supplies. (a) Journalize this transaction as if JumpStart paid cash. (b) (1) Journalize this transaction as if JumpStart placed it on account. (b) (2) On January 18th, JumpStart pays the amount due. Journalize this event.

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

Randomly listed below are the steps for preparing a trial balance: What is the proper order of these steps?

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

The chart of accounts should be the same for each business.

Transactions are listed in the journal chronologically.

McMann Company has a condensed income statement as shown:: Sales \ 198,000 \ 165,500 Total operating expenses 163,000 147,500 Net income 35,000 18,000 Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

Which of the following owner's equity accounts follows the same debit and credit rules as liabilities?

All of the following occur with a double-entry accounting system except:

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters