Question 1

The balance of the account can be determined by adding all of the debits, adding all of the credits, and adding the amounts together.

Accepted Answer

A) True 
 B)False

Question 2

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.   Prepare a trial balance. The total of the debits is

Accepted Answer

A)  $13,300 
B)  $9,400 
C)  $9,100 
D)  $9,600 
A)  $13,300 
B)  $9,400 
C)  $9,100 
D)  $9,600

Question 3

The recording of cash payments from the cash account is done by entering the amount as a credit.

Accepted Answer

A) True 
 B)False

Question 4

Debits will increase Unearned Revenues and Revenues.

Accepted Answer

A) True 
 B)False

Question 5

Dividends decrease retained earnings and are listed on the income statement as a deduction from revenue.

Accepted Answer

A) True 
 B)False

Question 6

Which are the parts of the T account?

Accepted Answer

A)  title, date, total 
B)  date, debit side, credit side 
C)  title, debit side, credit side 
D)  title, debit side, total 
A)  title, date, total 
B)  date, debit side, credit side 
C)  title, debit side, credit side 
D)  title, debit side, total

Question 7

All stockholders' equity accounts record increases to the accounts with credits.

Accepted Answer

A) True 
 B)False

Question 8

The normal balance of revenue accounts is a credit.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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

Accepted Answer

A)  post the debit portion of a journal entry incorrectly and 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 
E)  posting a part of a transaction correctly as a debit or credit but to the wrong account 
A)  post the debit portion of a journal entry incorrectly and 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 
E)  posting a part of a transaction correctly as a debit or credit but to the wrong account

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

Expense accounts are increased by credits.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following accounts would be increased with a credit?

Accepted Answer

A)  Land, Accounts Payable, Dividends 
B)  Accounts Payable, Unearned Revenue, Capital Stock 
C)  Capital Stock, Accounts Receivable, Unearned Revenue 
D)  Cash, Accounts Receivable, Capital Stock 
A)  Land, Accounts Payable, Dividends 
B)  Accounts Payable, Unearned Revenue, Capital Stock 
C)  Capital Stock, Accounts Receivable, Unearned Revenue 
D)  Cash, Accounts Receivable, Capital Stock

Question 14

Which of the following types of accounts have a normal credit balance?

Accepted Answer

A)  assets and liabilities 
B)  liabilities and expenses 
C)  revenues and liabilities 
D)  capital stock and dividends 
A)  assets and liabilities 
B)  liabilities and expenses 
C)  revenues and liabilities 
D)  capital stock and dividends

Question 15

What is the best explanation for this journal entry?

Accepted Answer

A)  Received cash for services performed. 
B)  Received cash for services to be performed in the future. 
C)  Paid cash in advance for services to be done. 
D)  Paid cash for services to be performed. 
A)  Received cash for services performed. 
B)  Received cash for services to be performed in the future. 
C)  Paid cash in advance for services to be done. 
D)  Paid cash for services to be performed.

Question 16

Liabilities are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 17

For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.

Accepted Answer

The answer of For each of the following errors, considered...

Question 18

Accounts are records of increases and decreases in individual financial statement items.

Accepted Answer

A) True 
 B)False

Question 19

The classification and normal balance of the supplies expense account is a(n)

Accepted Answer

A)  asset with a debit balance 
B)  asset with a credit balance 
C)  expense with a debit balance 
D)  liability with a credit balance 
A)  asset with a debit balance 
B)  asset with a credit balance 
C)  expense with a debit balance 
D)  liability with a credit balance

Question 20

Liability accounts are increased by debits.

Accepted Answer

A) True 
 B)False

The balance of the account can be determined by adding all of the debits, adding all of the credits, and adding the amounts together.

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances. Prepare a trial balance. The total of the debits is

The recording of cash payments from the cash account is done by entering the amount as a credit.

Debits will increase Unearned Revenues and Revenues.

Dividends decrease retained earnings and are listed on the income statement as a deduction from revenue.

Which are the parts of the T account?

All stockholders' equity accounts record increases to the accounts with credits.

The normal balance of revenue accounts is a credit.

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

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

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?

Expense accounts are increased by credits.

Which of the following accounts would be increased with a credit?

Which of the following types of accounts have a normal credit balance?

What is the best explanation for this journal entry?

Liabilities are increased with debits and decreased with credits.

For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.

Accounts are records of increases and decreases in individual financial statement items.

The classification and normal balance of the supplies expense account is a(n)

Liability accounts are increased by debits.

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 balance of the account can be determined by adding all of the debits, adding all of the credits, and adding the amounts together.

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances. Prepare a trial balance. The total of the debits is

The recording of cash payments from the cash account is done by entering the amount as a credit.

Debits will increase Unearned Revenues and Revenues.

Dividends decrease retained earnings and are listed on the income statement as a deduction from revenue.

Which are the parts of the T account?

All stockholders' equity accounts record increases to the accounts with credits.

The normal balance of revenue accounts is a credit.

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

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

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?

Expense accounts are increased by credits.

Which of the following accounts would be increased with a credit?

Which of the following types of accounts have a normal credit balance?

What is the best explanation for this journal entry?

Liabilities are increased with debits and decreased with credits.

For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.

Accounts are records of increases and decreases in individual financial statement items.

The classification and normal balance of the supplies expense account is a(n)

Liability accounts are increased by debits.

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

Filters