Question 1

Journalizing is the process of entering amounts in the ledger.

Accepted Answer

A) True 
 B)False

Question 2

A chart of accounts is a listing of accounts that make up the journal.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The chart of accounts is designed to

Accepted Answer

A)  alphabetize the accounts to make reading easier for its financial statement users. 
B)  analyze the accounts and organize them in order of dollar amount to simplify the accounting information for users. 
C)  summarize the transactions and determine their ending balances. 
D)  meet the information needs of a company and other financial statement users. 
A)  alphabetize the accounts to make reading easier for its financial statement users. 
B)  analyze the accounts and organize them in order of dollar amount to simplify the accounting information for users. 
C)  summarize the transactions and determine their ending balances. 
D)  meet the information needs of a company and other financial statement users.

Question 5

Which of the following accounts are debited to record increase in balances?

Accepted Answer

A)  assets and liabilities 
B)  drawing and liabilities 
C)  expenses and liabilities 
D)  assets and expenses 
A)  assets and liabilities 
B)  drawing and liabilities 
C)  expenses and liabilities 
D)  assets and expenses

Question 6

McMann Company has a condensed income statement as shown::
$$\begin{array} { | l | l | l | } 
\hline & \mathbf { 2 1 4 } & \mathbf { 2 0 1 3 } \
\hline \text { Sales } & \$ 150,000 & \$ 165,500 \
\hline \text { Total operating expenses } & 133,000 & 147,500 \
\hline \text { Net income } & 17,000 & 18,000 \
\hline & & \
\end{array}$$ Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

Accepted Answer

A)  (17,000), (11.3%) 
B)  (15,500), (10.3%) 
C)  ($18,000), (10.9%) 
D)  ($15,500), (9.4%) 
A)  (17,000), (11.3%) 
B)  (15,500), (10.3%) 
C)  ($18,000), (10.9%) 
D)  ($15,500), (9.4%)

Question 7

State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also, indicate the normal balance of each account.
 $\begin{array}{ll}
\text { 1.  Fees Earned } \
\text { 2.  Utilities Expense } \
\text { 3. Accounts Payable }
\end{array}$
$\begin{array}{l}
\text { 4. Supples } \
\text { 5. Cash } \
\text { 6.  Accounts Receivable }
\end{array}$

Accepted Answer

1. Credit entries only, normal credit ba

Question 8

Which of the following group of accounts increase with a credit?

Accepted Answer

A)  Capital, revenues, expenses 
B)  Assets, capital, revenues 
C)  Liabilities, capital, revenues 
D)  None of these 
A)  Capital, revenues, expenses 
B)  Assets, capital, revenues 
C)  Liabilities, capital, revenues 
D)  None of these

Question 9

The chart of accounts classify the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?

Accepted Answer

A)  1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Expenses, 5-Revenues 
B)  1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Revenues, 5-Expenses 
C)  1-Assets, 2-Owner's Equity, 3-Revenues, 4-Expenses, 5-Drawing 
D)  1-Owner's Equity, 2-Drawing, 3-Revenues, 4-Expenses 
A)  1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Expenses, 5-Revenues 
B)  1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Revenues, 5-Expenses 
C)  1-Assets, 2-Owner's Equity, 3-Revenues, 4-Expenses, 5-Drawing 
D)  1-Owner's Equity, 2-Drawing, 3-Revenues, 4-Expenses

Question 10

Total dollar amount of the debits equal the total dollar amount of the credits in the ledger can be verified through:

Accepted Answer

A)  ledger 
B)  trial balance 
C)  account 
D)  balance sheet 
A)  ledger 
B)  trial balance 
C)  account 
D)  balance sheet

Question 11

Journalizing eliminates fraud.

Accepted Answer

A) True 
 B)False

Question 12

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to find the error?

Accepted Answer

A)  Determine the amount of the error and look for that amount on the trial balance. 
B)  Determine the amount of the error and divide by two, then look for that amount on the trial balance. 
C)  Determine the amount of the error and refer to the journal entries for that amount. 
D)  Determine the amount of the error and divide by nine. If the result is evenly divided, then this type of error is likely. 
A)  Determine the amount of the error and look for that amount on the trial balance. 
B)  Determine the amount of the error and divide by two, then look for that amount on the trial balance. 
C)  Determine the amount of the error and refer to the journal entries for that amount. 
D)  Determine the amount of the error and divide by nine. If the result is evenly divided, then this type of error is likely.

Question 13

$\begin{array}{|l|l|l|l|l|l|}
\hline \text { April } & 23 & \text { Cash } & &26,000 & \
\hline & & \text { Jim Xu, Capital } & & & 26,000 \
\hline & & \text { Invest cash in XuCo. } & & & \
\hline\
\end{array}$ The journal entry will:

Accepted Answer

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

Question 14

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 15

The normal balance of a capital account is a debit.

Accepted Answer

A) True 
 B)False

Question 16

Damien Lawson invests $45,000 to initiate the operation of his business, JumpStart, on January 7th. Journalize this transaction.

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 17

Liabilities are debts owed by the business entity.

Accepted Answer

A) True 
 B)False

Question 18

A transaction that is recorded in the journal is called a journal entry.

Accepted Answer

A) True 
 B)False

Question 19

Which one of the statements below is not a purpose for the journal?

Accepted Answer

A)  to show increases and decreases in accounts 
B)  to show a chronological order by date 
C)  to show a complete transaction in one place 
D)  to help locate errors 
A)  to show increases and decreases in accounts 
B)  to show a chronological order by date 
C)  to show a complete transaction in one place 
D)  to help locate errors

Question 20

All owner's equity accounts record increases to the accounts with credits.

Accepted Answer

A) True 
 B)False

Journalizing is the process of entering amounts in the ledger.

A chart of accounts is a listing of accounts that make up the journal.

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

The chart of accounts is designed to

Which of the following accounts are debited to record increase in balances?

McMann Company has a condensed income statement as shown:: Sales \ 150,000 \ 165,500 Total operating expenses 133,000 147,500 Net income 17,000 18,000 Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also, indicate the normal balance of each account. 1. Fees Earned 2. Utilities Expense 3. Accounts Payable 4. Supples 5. Cash 6. Accounts Receivable

Which of the following group of accounts increase with a credit?

The chart of accounts classify the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?

Total dollar amount of the debits equal the total dollar amount of the credits in the ledger can be verified through:

Journalizing eliminates fraud.

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to find the error?

April 23 Cash 26,000 Jim Xu, Capital 26,000 Invest cash in XuCo. The journal entry will:

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

The normal balance of a capital account is a debit.

Damien Lawson invests $45,000 to initiate the operation of his business, JumpStart, on January 7th. Journalize this transaction.

Liabilities are debts owed by the business entity.

A transaction that is recorded in the journal is called a journal entry.

Which one of the statements below is not a purpose for the journal?

All owner's equity accounts record increases to the accounts with credits.

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

Journalizing is the process of entering amounts in the ledger.

A chart of accounts is a listing of accounts that make up the journal.

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

The chart of accounts is designed to

Which of the following accounts are debited to record increase in balances?

McMann Company has a condensed income statement as shown:: Sales \ 150,000 \ 165,500 Total operating expenses 133,000 147,500 Net income 17,000 18,000 Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also, indicate the normal balance of each account. 1. Fees Earned 2. Utilities Expense 3. Accounts Payable 4. Supples 5. Cash 6. Accounts Receivable

Which of the following group of accounts increase with a credit?

The chart of accounts classify the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?

Total dollar amount of the debits equal the total dollar amount of the credits in the ledger can be verified through:

Journalizing eliminates fraud.

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to find the error?

April 23 Cash 26,000 Jim Xu, Capital 26,000 Invest cash in XuCo. The journal entry will:

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

The normal balance of a capital account is a debit.

Damien Lawson invests $45,000 to initiate the operation of his business, JumpStart, on January 7th. Journalize this transaction.

Liabilities are debts owed by the business entity.

A transaction that is recorded in the journal is called a journal entry.

Which one of the statements below is not a purpose for the journal?

All owner's equity accounts record increases to the accounts with credits.

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