Question 1

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  False

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

The dividends account is an example of an expense.

Accepted Answer

A) True 
 B)False  False

Question 4

Debits will increase Unearned Revenues and Revenues.

Accepted Answer

A) True 
 B)False

Question 5

Retained earnings account increases with debits.

Accepted Answer

A) True 
 B)False

Question 6

The process of initially recording a business transaction is called

Accepted Answer

A) closing 
B) posting 
C) journalizing 
D) balancing 
A) closing 
B) posting 
C) journalizing 
D) balancing

Question 7

The process of recording a transaction in the journal is called

Accepted Answer

A) recording 
B) journalizing 
C) posting 
D) summarizing 
A) recording 
B) journalizing 
C) posting 
D) summarizing

Question 8

In accordance with the rules of debit and credit,which of the following is true?

Accepted Answer

A) Debits increase assets. 
B) Credits increase assets. 
C) Debits increase both assets and retained earnings. 
D) Credits increase both assets and liabilities. 
A) Debits increase assets. 
B) Credits increase assets. 
C) Debits increase both assets and retained earnings. 
D) Credits increase both assets and liabilities.

Question 9

Revenue should be recognized when

Accepted Answer

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

Question 10

Of the following,which istrue about assets?

Accepted Answer

A) Assets include physical items and intangibles that have value. 
B) Assets include only physical items of value. 
C) Assets are owned solely by the stockholders of the company. 
D) Assets are the result of selling products or services to customers. 
A) Assets include physical items and intangibles that have value. 
B) Assets include only physical items of value. 
C) Assets are owned solely by the stockholders of the company. 
D) Assets are the result of selling products or services to customers.

Question 11

The payment for the monthly rent will require which of the following entries?

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 12

On November 10th,JumpStart Co.provides $2,900 in services to clients.At the time of service,the clients paid $600.00 in cash and put the balance on account.
(a)Journalize this event.
(b)On November 20th,JumpStart Co.clients paid an additional $900 on their accounts due.Journalize this event.
(c)Calculate the amount of accounts receivable on November 30th.

Accepted Answer

The answer of On November 10th,JumpStart Co.provides $2,900 in services...

Question 13

Which of the following is true regarding normal balances of accounts?

Accepted Answer

A) All accounts have a normal debit balance. 
B) All expense accounts have a normal negative balance. 
C) Accounts that have a normal debit balance will only have debit entries,never credit entries. 
D) The normal balance appears on the side of the account that also receives increase entries. 
A) All accounts have a normal debit balance. 
B) All expense accounts have a normal negative balance. 
C) Accounts that have a normal debit balance will only have debit entries,never credit entries. 
D) The normal balance appears on the side of the account that also receives increase entries.

Question 14

Which group of accounts is comprised of only assets?

Accepted Answer

A) Cash,Accounts Payable,Buildings 
B) Accounts Receivable,Revenue,Cash 
C) Prepaid Expenses,Buildings,Patents 
D) Unearned Revenues,Prepaid Expenses,Cash 
A) Cash,Accounts Payable,Buildings 
B) Accounts Receivable,Revenue,Cash 
C) Prepaid Expenses,Buildings,Patents 
D) Unearned Revenues,Prepaid Expenses,Cash

Question 15

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 16

The post reference notation used in the journal is the page number.

Accepted Answer

A) True 
 B)False

Question 17

The unearned revenues account is an example of a liability.

Accepted Answer

A) True 
 B)False

Question 18

The increase side of all accounts is the normal balance.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following accounts increase with a credit?

Accepted Answer

A) capital stock,revenues,expenses 
B) assets,capital stock,revenues 
C) liabilities,capital stock,revenues 
D) retained earnings,capital stock,assets 
A) capital stock,revenues,expenses 
B) assets,capital stock,revenues 
C) liabilities,capital stock,revenues 
D) retained earnings,capital stock,assets

Question 20

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

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

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

The dividends account is an example of an expense.

Debits will increase Unearned Revenues and Revenues.

Retained earnings account increases with debits.

The process of initially recording a business transaction is called

The process of recording a transaction in the journal is called

In accordance with the rules of debit and credit,which of the following is true?

Revenue should be recognized when

Of the following,which istrue about assets?

The payment for the monthly rent will require which of the following entries?

Which of the following is true regarding normal balances of accounts?

Which group of accounts is comprised of only assets?

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

The post reference notation used in the journal is the page number.

The unearned revenues account is an example of a liability.

The increase side of all accounts is the normal balance.

Which of the following accounts increase with a credit?

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

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

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Exam 2: Analyzing Transactions

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

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

The dividends account is an example of an expense.

Debits will increase Unearned Revenues and Revenues.

Retained earnings account increases with debits.

The process of initially recording a business transaction is called

The process of recording a transaction in the journal is called

In accordance with the rules of debit and credit,which of the following is true?

Revenue should be recognized when

Of the following,which istrue about assets?

The payment for the monthly rent will require which of the following entries?

Which of the following is true regarding normal balances of accounts?

Which group of accounts is comprised of only assets?

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

The post reference notation used in the journal is the page number.

The unearned revenues account is an example of a liability.

The increase side of all accounts is the normal balance.

Which of the following accounts increase with a credit?

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

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

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