Question 1

Which of the following applications of the rules of debit and credit is true?

Accepted Answer

A) decrease Prepaid Insurance with a credit and the normal balance is a credit 
B) increase Accounts Payable with a credit and the normal balance is a debit 
C) increase Supplies Expense with a debit and the normal balance is a debit 
D) decrease Cash with a debit and the normal balance is a credit 
A) decrease Prepaid Insurance with a credit and the normal balance is a credit 
B) increase Accounts Payable with a credit and the normal balance is a debit 
C) increase Supplies Expense with a debit and the normal balance is a debit 
D) decrease Cash with a debit and the normal balance is a credit

Question 2

The chart of accounts for the Corning Corporation includes the following:
 
On journal page 3,the following transaction was found:
$\begin{array}{|c|l|l|}
\hline \text { Prepaid Insurance } & 1,530 & \
\hline \text { Cash } & & 1,530 \
\hline
\end{array}$
What is the posting reference that will be found in the Prepaid Insurance account?

Accepted Answer

A) 11 
B) 15 
C) 3 
D) none of these 
A) 11 
B) 15 
C) 3 
D) none of these

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

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

Question 5

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

Accepted Answer

A) True 
 B)False

Question 6

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

Accepted Answer

A) all of the information from the journal was correctly transferred to the ledger 
B) all accounts have their correct balances in the ledger 
C) only the journal is accurate;the ledger may be incorrect 
D) only that the debit dollar amounts equal the credit dollar amounts 
A) all of the information from the journal was correctly transferred to the ledger 
B) all accounts have their correct balances in the ledger 
C) only the journal is accurate;the ledger may be incorrect 
D) only that the debit dollar amounts equal the credit dollar amounts

Question 7

Accounts

Accepted Answer

A) do not reflect money amounts 
B) are not used by entities that manufacture products 
C) are records of increases and decreases in individual financial statement items 
D) are only used by large entities with many transactions 
A) do not reflect money amounts 
B) are not used by entities that manufacture products 
C) are records of increases and decreases in individual financial statement items 
D) are only used by large entities with many transactions

Question 8

Which of the following entries records the payment of an account payable?

Accepted Answer

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

Question 9

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

Accepted Answer

A) True 
 B)False

Question 10

McMann Company has condensed income statements as follows:
   
REQUIRED:
Prepare a horizontal analysis of McMann Company's income statements.Comment on the trends,both favorable and unfavorable.

Accepted Answer

@#IMG-DLM& While the trend in sales reve

Question 11

The chart of accounts classifies 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-Stockholders' Equity,4-Expenses,5-Revenues 
B) 1-Assets,2-Liabilities,3-Stockholders' Equity,4-Revenues,5-Expenses 
C) 1-Assets,2-Stockholders' Equity,3-Revenues,4-Expenses,5-Dividends 
D) 1-Stockholders' Equity,2-Dividends,3-Revenues,4-Expenses 
A) 1-Assets,2-Liabilities,3-Stockholders' Equity,4-Expenses,5-Revenues 
B) 1-Assets,2-Liabilities,3-Stockholders' Equity,4-Revenues,5-Expenses 
C) 1-Assets,2-Stockholders' Equity,3-Revenues,4-Expenses,5-Dividends 
D) 1-Stockholders' Equity,2-Dividends,3-Revenues,4-Expenses

Question 12

Scott,Inc.issued $40,000 of capital stock.How would this transaction be entered in the journal?

Accepted Answer

A) Cash 40,000 
Capital Stock 40,000
Sold stock for cash. 
B) Cash 40,000 
Inventory 40,000
Sold stock for cash. 
C) Capital Stock 40,000 
Cash 40,000
Sold stock for cash. 
D) Capital Stock 40,000 
Accounts Payable 40,000
Sold stock for cash. 
A) Cash 40,000 
Capital Stock 40,000
Sold stock for cash. 
B) Cash 40,000 
Inventory 40,000
Sold stock for cash. 
C) Capital Stock 40,000 
Cash 40,000
Sold stock for cash. 
D) Capital Stock 40,000 
Accounts Payable 40,000
Sold stock for cash.

Which of the following applications of the rules of debit and credit is true?

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

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

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

Accounts

Which of the following entries records the payment of an account payable?

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

McMann Company has condensed income statements as follows: REQUIRED: Prepare a horizontal analysis of McMann Company's income statements.Comment on the trends,both favorable and unfavorable.

The chart of accounts classifies 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?

Scott,Inc.issued $40,000 of capital stock.How would this transaction be entered in the journal?

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

Which of the following applications of the rules of debit and credit is true?

The chart of accounts for the Corning Corporation includes the following: On journal page 3,the following transaction was found: Prepaid Insurance 1,530 Cash 1,530 What is the posting reference that will be found in the Prepaid Insurance account?

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

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

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

Accounts

Which of the following entries records the payment of an account payable?

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

McMann Company has condensed income statements as follows: REQUIRED: Prepare a horizontal analysis of McMann Company's income statements.Comment on the trends,both favorable and unfavorable.

The chart of accounts classifies 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?

Scott,Inc.issued $40,000 of capital stock.How would this transaction be entered in the journal?

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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