Question 1

Revenue should be recognized when

Accepted Answer

A)  cash is received 
B)  the service is performed 
C)  the customer places an order 
D)  the supplier charges an order 
A)  cash is received 
B)  the service is performed 
C)  the customer places an order 
D)  the supplier charges an order

Question 2

Debits will increase Unearned Revenues and Revenues.

Accepted Answer

A) True 
 B)False

Question 3

Analyze the following transactions as to their effect on the accounting equation.
   Some of the possible effects of a transaction on the accounting equation are listed below:
   Put the appropriate letter next to each transaction.

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 4

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

Accepted Answer

A)  assets, expenses and withdrawals are increased by debits 
B)  assets are decreased by credits and have a normal debit balance 
C)  liabilities, revenues and owner's equity are increased by credits 
D)  the normal balance for revenues and expenses is a credit 
A)  assets, expenses and withdrawals are increased by debits 
B)  assets are decreased by credits and have a normal debit balance 
C)  liabilities, revenues and owner's equity are increased by credits 
D)  the normal balance for revenues and expenses is a credit

Question 5

Which of the following entries records the collection of cash from cash customers?

Accepted Answer

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

Question 6

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 journal entry?

Accepted Answer

A)  15, 11 
B)  15 
C)  11 
D)  3 
A)  15, 11 
B)  15 
C)  11 
D)  3

Question 7

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 8

The payment for the monthly rent will require the following entry

Accepted Answer

A)  Debit Cash and Debit Rent Expense 
B)  Credit Cash and Credit Rent Expense 
C)  Debit Rent Expense and Credit Cash 
D)  Credit Rent Expense and Debit Cash 
A)  Debit Cash and Debit Rent Expense 
B)  Credit Cash and Credit Rent Expense 
C)  Debit Rent Expense and Credit Cash 
D)  Credit Rent Expense and Debit Cash

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following will increase owner's equity?

Accepted Answer

A)  Expenses > revenues 
B)  the owner draws money for personal use 
C)  Revenues > expenses 
D)  Cash is received from customers on account. 
A)  Expenses > revenues 
B)  the owner draws money for personal use 
C)  Revenues > expenses 
D)  Cash is received from customers on account.

Question 11

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)  owner's equity with a credit balance 
D)  revenue with a credit balance 
A)  an asset with a credit balance 
B)  a liability with a credit balance 
C)  owner's equity with a credit balance 
D)  revenue with a credit balance

Question 12

$$\begin{array} { | l | l | c | l | l | l |  } 
\hline \text { May } & 24 & \text { Land } & & 105,000 & \
\hline & & \text { Cus } & & & 105,000 \
\hline & & \text { Purchased land for business } & & & \
\hline & & & & & \
\end{array}$$ What effects does this journal entry have on the accounts?

Accepted Answer

A)  Increase Cash and increase Land 
B)  Increase Land and decrease Cash 
C)  Decrease Cash and decrease Land 
D)  Increase Cash and decrease Land 
A)  Increase Cash and increase Land 
B)  Increase Land and decrease Cash 
C)  Decrease Cash and decrease Land 
D)  Increase Cash and decrease Land

Question 13

The accounts in the ledger of Monroe Entertainment Co. are listed in alphabetical order. All accounts have normal balances. $\begin{array}{llll}
\text { Accounts Payable } & 1,500 & \text { Fees Earned } & 3,600 \
\text { Accounts Receivable } & 1,800 & \text { Insurnce Expense } & 1,300 \
\text { Prepaid Insurance } & 2,000 & \text { Land } & 3,000 \
\text { Cash } & 3,200 & \text { Wages Expense } & 1,400 \
\text { Drawing } & 1,200 & \text { Capital } & 8,800
\end{array}$ 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 14

Which of the following describes the classification and normal balance of the fees earned account?

Accepted Answer

A)  asset, credit 
B)  liability, credit 
C)  owner's equity, debit 
D)  revenue, credit 
A)  asset, credit 
B)  liability, credit 
C)  owner's equity, debit 
D)  revenue, credit

Question 15

$\begin{array}{|l|l|l|l|l|l|}
\hline \text { April } & 14 & \text { Equipment } & & 15,000 & \
\hline & & \text { Cash } & & & 5,000 \
\hline & & \text { Note Payable } & & & 10,000 \
\hline & & \text { ????????? } & & & \
\hline & & & & & \
\end{array}$ Which is the best explanation for this journal entry?

Accepted Answer

A)  Purchased equipment, paid cash of $5,000, with the remainder to be paid in payments. 
B)  Purchased equipment, paid cash of $10,000, with the remainder to be received in the future. 
C)  Purchased equipment, paid cash for the entire amount. 
D)  Purchased equipment on credit. 
A)  Purchased equipment, paid cash of $5,000, with the remainder to be paid in payments. 
B)  Purchased equipment, paid cash of $10,000, with the remainder to be received in the future. 
C)  Purchased equipment, paid cash for the entire amount. 
D)  Purchased equipment on credit.

Question 16

Supplies purchased on account were incorrectly recorded as Office Equipment. The correcting entry would be

Accepted Answer

A)  Supplies, debit; Office Equipment, credit. 
B)  Accounts Receivable, debit; Supplies, credit. 
C)  Office Equipment, debit; Supplies Expense, credit. 
D)  Supplies, debit; Accounts Payable, credit. 
A)  Supplies, debit; Office Equipment, credit. 
B)  Accounts Receivable, debit; Supplies, credit. 
C)  Office Equipment, debit; Supplies Expense, credit. 
D)  Supplies, debit; Accounts Payable, credit.

Question 17

Journal entries can have more than two accounts as long as the debits equal the credits.

Accepted Answer

A) True 
 B)False

Question 18

On June 1, the cash account balance was $96,750. During June, cash receipts totaled $305,000 and the June 30 balance was $75,880. Determine the cash payments made during June.

Accepted Answer

75,880 = 96,750 + 30

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The cash account will always be debited.

Accepted Answer

A) True 
 B)False

Revenue should be recognized when

Debits will increase Unearned Revenues and Revenues.

Analyze the following transactions as to their effect on the accounting equation. Some of the possible effects of a transaction on the accounting equation are listed below: Put the appropriate letter next to each transaction.

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

Which of the following entries records the collection of cash from cash customers?

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

The payment for the monthly rent will require the following entry

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

Which of the following will increase owner's equity?

The classification and normal balance of the accounts payable account is

May 24 Land 105,000 Cus 105,000 Purchased land for business What effects does this journal entry have on the accounts?

Which of the following describes the classification and normal balance of the fees earned account?

April 14 Equipment 15,000 Cash 5,000 Note Payable 10,000 ????????? Which is the best explanation for this journal entry?

Supplies purchased on account were incorrectly recorded as Office Equipment. The correcting entry would be

Journal entries can have more than two accounts as long as the debits equal the credits.

On June 1, the cash account balance was $96,750. During June, cash receipts totaled $305,000 and the June 30 balance was $75,880. Determine the cash payments made during June.

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

The cash account will always be debited.

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

Revenue should be recognized when

Debits will increase Unearned Revenues and Revenues.

Analyze the following transactions as to their effect on the accounting equation. Some of the possible effects of a transaction on the accounting equation are listed below: Put the appropriate letter next to each transaction.

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

Which of the following entries records the collection of cash from cash customers?

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

The payment for the monthly rent will require the following entry

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

Which of the following will increase owner's equity?

The classification and normal balance of the accounts payable account is

May 24 Land 105,000 Cus 105,000 Purchased land for business What effects does this journal entry have on the accounts?

Which of the following describes the classification and normal balance of the fees earned account?

April 14 Equipment 15,000 Cash 5,000 Note Payable 10,000 ????????? Which is the best explanation for this journal entry?

Supplies purchased on account were incorrectly recorded as Office Equipment. The correcting entry would be

Journal entries can have more than two accounts as long as the debits equal the credits.

On June 1, the cash account balance was $96,750. During June, cash receipts totaled $305,000 and the June 30 balance was $75,880. Determine the cash payments made during June.

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

The cash account will always be debited.

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