Question 1

A credit may signify a

Accepted Answer

A) decrease in assets 
B) decrease in liabilities 
C) decrease in retained earnings 
D) decrease in revenue 
A) decrease in assets 
B) decrease in liabilities 
C) decrease in retained earnings 
D) decrease in revenue

Question 2

When a business receives a bill from the utility company,no entry should be made until the invoice is paid.

Accepted Answer

A) True 
 B)False

Question 3

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 posting transactions to ledger 
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 posting transactions to ledger

Question 4

The bookkeeper for Brockton Industries prepared the following journal entries and posted the entries to the general ledger as indicated in the T accounts presented.Assume that the dollar amounts and the descriptions of the entries are correct.

REQUIRED:
If you assume that all journal entries have been recorded correctly,use the above information to:
1)Identify the postings to the general ledger that were made incorrectly.
2)Describe how each incorrect posting should have been made.

Accepted Answer

(1)The bookkeeper incorrectly posted the

Question 5

When a transposition error is made on the trial balance,the difference between the debit and credit totals on the trial balance will be

Accepted Answer

A) zero 
B) twice the amount of the transposition 
C) one-half the amount of the transposition 
D) divisible by 9 
A) zero 
B) twice the amount of the transposition 
C) one-half the amount of the transposition 
D) divisible by 9

Question 6

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee.When Jamison receives cash from the employee for the amount of the overpayment,which of the following entries will Jamison make?

Accepted Answer

A) Cash,debit;Wages Expense,credit 
B) Wages Payable,debit;Wages Expense,credit 
C) Wages Expense,debit,Cash,credit 
D) Cash,debit;Wages Payable,credit 
A) Cash,debit;Wages Expense,credit 
B) Wages Payable,debit;Wages Expense,credit 
C) Wages Expense,debit,Cash,credit 
D) Cash,debit;Wages Payable,credit

Question 7

When an accounts payable account is paid in cash,company expenses increase.

Accepted Answer

A) True 
 B)False

Question 8

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

The answer of Analyze the following transactions as to their...

Question 9

Which of the following is not considered to be a liability?

Accepted Answer

A) Wages Payable 
B) Accounts Receivable 
C) Unearned Revenues 
D) Accounts Payable 
A) Wages Payable 
B) Accounts Receivable 
C) Unearned Revenues 
D) Accounts Payable

Question 10

Journalize the following selected transactions for April 2011 in a two-column journal.Journal entry explanations may be omitted.

Accepted Answer

The answer of Journalize the following selected transactions for April...

Question 11

Liabilities are debts owed by the business entity.

Accepted Answer

A) True 
 B)False

Question 12

The classification and normal balance of the dividends account is

Accepted Answer

A) an expense with a credit balance 
B) an expense with a debit balance 
C) a liability with a credit balance 
D) a stockholders' equity item with a debit balance 
A) an expense with a credit balance 
B) an expense with a debit balance 
C) a liability with a credit balance 
D) a stockholders' equity item with a debit balance

Question 13

The following errors took place in journalizing and posting transactions:
   
Journalize the entries to correct the errors.Omit the explanations.

Accepted Answer

The answer of The following errors took place in journalizing...

Question 14

On January 8th,JumpStart purchased $20,000 worth of office equipment.Prepare the journal entry to record this transaction.

Accepted Answer

The answer of On January 8th,JumpStart purchased $20,000 worth of...

Question 15

Accounts are classified in the ledger

Accepted Answer

A) chronologically 
B) alphabetically 
C) in accordance with their appearance in the financial statements 
D) so that accounts used most often are listed first 
A) chronologically 
B) alphabetically 
C) in accordance with their appearance in the financial statements 
D) so that accounts used most often are listed first

Question 16

Increases and decreases in various types of accounts are listed below.In each case,indicate by "Dr." or "Cr." (a)whether the change in the account would be recorded as a debit or a credit and (b)whether the normal balance of the account is a debit or a credit.

Accepted Answer

The answer of Increases and decreases in various types of...

Question 17

The recording of cash receipts to the cash account will be done by debiting the account.

Accepted Answer

A) True 
 B)False

Question 18

Answer the following questions for each of the errors listed below,considered individually:
   
Present your answers in columnar form,using the following headings:
   
Errors:

Accepted Answer

The answer of Answer the following questions for each of...

Question 19

Accounts in the ledger are usually maintained in alphabetical order.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following entries records the receipt of cash from patients on account?

Accepted Answer

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

A credit may signify a

When a business receives a bill from the utility company,no entry should be made until the invoice is paid.

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

When a transposition error is made on the trial balance,the difference between the debit and credit totals on the trial balance will be

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee.When Jamison receives cash from the employee for the amount of the overpayment,which of the following entries will Jamison make?

When an accounts payable account is paid in cash,company expenses increase.

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 considered to be a liability?

Journalize the following selected transactions for April 2011 in a two-column journal.Journal entry explanations may be omitted.

Liabilities are debts owed by the business entity.

The classification and normal balance of the dividends account is

The following errors took place in journalizing and posting transactions: Journalize the entries to correct the errors.Omit the explanations.

On January 8th,JumpStart purchased $20,000 worth of office equipment.Prepare the journal entry to record this transaction.

Accounts are classified in the ledger

Increases and decreases in various types of accounts are listed below.In each case,indicate by "Dr." or "Cr." (a)whether the change in the account would be recorded as a debit or a credit and (b)whether the normal balance of the account is a debit or a credit.

The recording of cash receipts to the cash account will be done by debiting the account.

Answer the following questions for each of the errors listed below,considered individually: Present your answers in columnar form,using the following headings: Errors:

Accounts in the ledger are usually maintained in alphabetical order.

Which of the following entries records the receipt of cash from patients on account?

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

A credit may signify a

When a business receives a bill from the utility company,no entry should be made until the invoice is paid.

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

When a transposition error is made on the trial balance,the difference between the debit and credit totals on the trial balance will be

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee.When Jamison receives cash from the employee for the amount of the overpayment,which of the following entries will Jamison make?

When an accounts payable account is paid in cash,company expenses increase.

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 considered to be a liability?

Journalize the following selected transactions for April 2011 in a two-column journal.Journal entry explanations may be omitted.

Liabilities are debts owed by the business entity.

The classification and normal balance of the dividends account is

The following errors took place in journalizing and posting transactions: Journalize the entries to correct the errors.Omit the explanations.

On January 8th,JumpStart purchased $20,000 worth of office equipment.Prepare the journal entry to record this transaction.

Accounts are classified in the ledger

Increases and decreases in various types of accounts are listed below.In each case,indicate by "Dr." or "Cr." (a)whether the change in the account would be recorded as a debit or a credit and (b)whether the normal balance of the account is a debit or a credit.

The recording of cash receipts to the cash account will be done by debiting the account.

Answer the following questions for each of the errors listed below,considered individually: Present your answers in columnar form,using the following headings: Errors:

Accounts in the ledger are usually maintained in alphabetical order.

Which of the following entries records the receipt of cash from patients on account?

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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