Question 1

The gross increases in owner's equity attributable to business activities are called

Accepted Answer

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

Question 2

Which of the following accounts would be increased with a credit?

Accepted Answer

A)  Land, Accounts Payable, Drawing 
B)  Accounts Payable, Unearned revenue, Collins Capital 
C)  Collins Capital, Accounts Receivable, Unearned Revenue 
D)  Cash, Accounts Receivable, Collins Capital 
A)  Land, Accounts Payable, Drawing 
B)  Accounts Payable, Unearned revenue, Collins Capital 
C)  Collins Capital, Accounts Receivable, Unearned Revenue 
D)  Cash, Accounts Receivable, Collins Capital

Question 3

When an account receivable is collected in cash, the total assets of the business increase.

Accepted Answer

A) True 
 B)False

Question 4

A drawing account represents the amount of withdrawals made by the owner.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  assets, expenses, liabilities, owner's equity, revenues 
B)  owners' equity, assets, liabilities, revenues, expenses 
C)  assets, liabilities, owner's equity, revenues, expenses 
D)  assets, liabilities, revenues, expenses, owners' equity 
A)  assets, expenses, liabilities, owner's equity, revenues 
B)  owners' equity, assets, liabilities, revenues, expenses 
C)  assets, liabilities, owner's equity, revenues, expenses 
D)  assets, liabilities, revenues, expenses, owners' equity

Question 6

Liabilities are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 7

In which of the following types of accounts are decreases recorded by credits?

Accepted Answer

A)  liabilities 
B)  owner's capital 
C)  drawing 
D)  revenues 
A)  liabilities 
B)  owner's capital 
C)  drawing 
D)  revenues

Question 8

The T account got its name because it resembles the letter "T."

Accepted Answer

A) True 
 B)False

Question 9

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 10

A cash payment is recorded on the cash account as a

Accepted Answer

A)  neither a debit or a credit 
B)  credit 
C)  debit 
D)  either a debit or a credit 
A)  neither a debit or a credit 
B)  credit 
C)  debit 
D)  either a debit or a credit

Question 11

The balance of the account can be determined by adding all of the debits, adding all of the credits, and adding the amounts together.

Accepted Answer

A) True 
 B)False

Question 12

When an owner contributes equipment to the business, he or she retains ownership of the property.

Accepted Answer

A) True 
 B)False

Question 13

The owner's equity will be reduced by all of the following accounts except:

Accepted Answer

A)  Revenues 
B)  Expenses 
C)  Drawing account 
D)  All are true. 
A)  Revenues 
B)  Expenses 
C)  Drawing account 
D)  All are true.

Question 14

In which of the following types of accounts are decreases recorded by debits?

Accepted Answer

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

Question 15

On October 10th, Nikle Company purchased supplies worth $1,800 on account.
(a) Write the journal entry in the space below.
(b) Nikle Company paid this bill on October 25th. Write the journal entry in the space below.

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 16

The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts Receivable for $500. The correcting entry would include a:

Accepted Answer

A)  credit to Accounts Receivable for $500 
B)  credit to Accounts Receivable for $1,000 
C)  credit to Accounts Payable for $500 
D)  credit to Accounts Payable for $1,000 
A)  credit to Accounts Receivable for $500 
B)  credit to Accounts Receivable for $1,000 
C)  credit to Accounts Payable for $500 
D)  credit to Accounts Payable for $1,000

Question 17

On November 1st Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land plot. Write the journal entry for this payment in the space below.

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 18

Expenses follow the same debit and credit rules as

Accepted Answer

A)  Revenues 
B)  Drawing Account 
C)  Capital Account 
D)  Liabilities 
A)  Revenues 
B)  Drawing Account 
C)  Capital Account 
D)  Liabilities

Question 19

On January 1, 2010, Cary Parsons established a 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.
$\begin{array}{|l|l|}
\hline 1 . & \text { Cash } ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\
\hline 2 . & \text { Accounts Receivable } \
\hline 3 . & \text { Supplies } \
\hline 4 . & \text { Prepaid Insurance } \
\hline 5 . & \text { Equipment } \
\hline 6 . & \text { Truck } \
\hline 7 . & \text { Notes Payable } \
\hline 8 . & \text { Accounts Payable } \
\hline 9 . & \text { Cary Parsons, Capital } \
\hline 10 . & \text { Cary Parsons, Drawing } \
\hline 11 . & \text { Fees Earned } \
\hline 12 . & \text { Wages Expense } \
\hline 13 . & \text { Rent Expense } \
\hline 14 . & \text { Utilities Expense } \
\hline 15 . & \text { Truck Expense } \
\hline 16 . & \text { Miscellaneous Expense } \
\hline & \
\end{array}$

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 20

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

Accepted Answer

@#IMG-DLM&_TB2085_00

The gross increases in owner's equity attributable to business activities are called

Which of the following accounts would be increased with a credit?

When an account receivable is collected in cash, the total assets of the business increase.

A drawing account represents the amount of withdrawals made by the owner.

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

Liabilities are increased with debits and decreased with credits.

In which of the following types of accounts are decreases recorded by credits?

The T account got its name because it resembles the letter "T."

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

A cash payment is recorded on the cash account as a

The balance of the account can be determined by adding all of the debits, adding all of the credits, and adding the amounts together.

When an owner contributes equipment to the business, he or she retains ownership of the property.

The owner's equity will be reduced by all of the following accounts except:

In which of the following types of accounts are decreases recorded by debits?

On October 10th, Nikle Company purchased supplies worth $1,800 on account. (a) Write the journal entry in the space below. (b) Nikle Company paid this bill on October 25th. Write the journal entry in the space below.

The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts Receivable for $500. The correcting entry would include a:

On November 1st Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land plot. Write the journal entry for this payment in the space below.

Expenses follow the same debit and credit rules as

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

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

Exam 2: Analyzing Transactions

The gross increases in owner's equity attributable to business activities are called

Which of the following accounts would be increased with a credit?

When an account receivable is collected in cash, the total assets of the business increase.

A drawing account represents the amount of withdrawals made by the owner.

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

Liabilities are increased with debits and decreased with credits.

In which of the following types of accounts are decreases recorded by credits?

The T account got its name because it resembles the letter "T."

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

A cash payment is recorded on the cash account as a

The balance of the account can be determined by adding all of the debits, adding all of the credits, and adding the amounts together.

When an owner contributes equipment to the business, he or she retains ownership of the property.

The owner's equity will be reduced by all of the following accounts except:

In which of the following types of accounts are decreases recorded by debits?

On October 10th, Nikle Company purchased supplies worth $1,800 on account. (a) Write the journal entry in the space below. (b) Nikle Company paid this bill on October 25th. Write the journal entry in the space below.

The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts Receivable for $500. The correcting entry would include a:

On November 1st Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land plot. Write the journal entry for this payment in the space below.

Expenses follow the same debit and credit rules as

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

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