Question 1

Consuming goods and services in the process of generating revenues results in expenses.

Accepted Answer

A) True 
 B)False

Question 2

The accounts payable account is listed in the chart of accounts as an asset.

Accepted Answer

A) True 
 B)False

Question 3

On December 1st, JumpStart Company provides $2,800 in services to clients.
(a) Journalize this event as if the clients had paid cash at the time the services were rendered.
(b) (1) Journalize this event as if the clients had placed this on account.
(b) (2) Assume that the clients paid $1,200 of the amount on account on December 30th. Journalize this transaction.

Accepted Answer

The answer of On December 1st, JumpStart Company provides $2,800...

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 th

Question 5

Journalize the entries to correct the following errors:

Accepted Answer

The answer of Journalize the entries to correct the following...

Question 6

The process of initially recording a business transaction is called

Accepted Answer

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

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

Accepted Answer

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

Question 9

This journal entry will

Accepted Answer

A)  increase Stockholders' Equity and decrease Cash 
B)  increase Cash and decrease Stockholders' Equity 
C)  increase Cash and increase Stockholders' Equity 
D)  decrease Cash and decrease Stockholders' Equity 
A)  increase Stockholders' Equity and decrease Cash 
B)  increase Cash and decrease Stockholders' Equity 
C)  increase Cash and increase Stockholders' Equity 
D)  decrease Cash and decrease Stockholders' Equity

Question 10

In which of the following types of accounts are increases recorded by debits?

Accepted Answer

A)  assets, liabilities 
B)  dividends, liabilities 
C)  expenses, liabilities 
D)  assets, expenses 
A)  assets, liabilities 
B)  dividends, liabilities 
C)  expenses, liabilities 
D)  assets, expenses

Question 11

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Accepted Answer

A) True 
 B)False

Question 12

Normal balances appear on the side that increases the account balance.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following describes the classification and normal balance of the fees earned account?

Accepted Answer

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

Question 14

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 15

Office supplies were sold by Ari's Alarm Service at cost to another repair shop, with cash received. Which of the following entries for Ari's Alarm Service records this transaction?

Accepted Answer

A)  Office Supplies, debit; Cash, credit 
B)  Office Supplies, debit; Accounts Payable, credit 
C)  Cash, debit; Office Supplies, credit 
D)  Accounts Payable, debit; Office Supplies, credit 
A)  Office Supplies, debit; Cash, credit 
B)  Office Supplies, debit; Accounts Payable, credit 
C)  Cash, debit; Office Supplies, credit 
D)  Accounts Payable, debit; Office Supplies, credit

Question 16

Prarie Clinic purchased X-ray equipment for $4,000, paid $1,275 down, with the remainder to be paid later. The correct entry would be

Accepted Answer

A)  Equipment 1,275 Cash 1,275 
B)  Cash 1,275 Accounts Payable 2,725
Equipment 4,000 
C)  Equipment Expense 4,000 Accounts Payable 1,275
Cash 2,725 
D)  Equipment 4,000 Accounts Payable 2,725
Cash 1,275 
A)  Equipment 1,275 Cash 1,275 
B)  Cash 1,275 Accounts Payable 2,725
Equipment 4,000 
C)  Equipment Expense 4,000 Accounts Payable 1,275
Cash 2,725 
D)  Equipment 4,000 Accounts Payable 2,725
Cash 1,275

Question 17

Which of the following entries records the acquisition of office supplies on account?

Accepted Answer

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

Question 18

Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.

Accepted Answer

The answer of Listed below are accounts to use for...

Question 19

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 20

All of the following statements regarding a horizontal analysis are true except

Accepted Answer

A)  A horizontal analysis is used to compare an item in a current statement with the same item in prior statements. 
B)  A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement of cash flows. 
C)  If fees earned in 2010 are $150,000 and fees earned in 2011 are $187,500, a horizontal analysis will indicate a 25% increase over this period. 
D)  When two statements are compared in horizontal analysis, the earlier statement is used as the base for computing the amount and the percent of change. 
A)  A horizontal analysis is used to compare an item in a current statement with the same item in prior statements. 
B)  A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement of cash flows. 
C)  If fees earned in 2010 are $150,000 and fees earned in 2011 are $187,500, a horizontal analysis will indicate a 25% increase over this period. 
D)  When two statements are compared in horizontal analysis, the earlier statement is used as the base for computing the amount and the percent of change.

Consuming goods and services in the process of generating revenues results in expenses.

The accounts payable account is listed in the chart of accounts as an asset.

Journalize the entries to correct the following errors:

The process of initially recording a business transaction is called

The process of recording a transaction in the journal is called

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

This journal entry will

In which of the following types of accounts are increases recorded by debits?

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Normal balances appear on the side that increases the account balance.

Which of the following describes the classification and normal balance of the fees earned account?

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.

Office supplies were sold by Ari's Alarm Service at cost to another repair shop, with cash received. Which of the following entries for Ari's Alarm Service records this transaction?

Prarie Clinic purchased X-ray equipment for $4,000, paid $1,275 down, with the remainder to be paid later. The correct entry would be

Which of the following entries records the acquisition of office supplies on account?

Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.

Accounts are classified in the ledger

All of the following statements regarding a horizontal analysis are true except

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

Exam 2: Analyzing Transactions

Consuming goods and services in the process of generating revenues results in expenses.

The accounts payable account is listed in the chart of accounts as an asset.

Journalize the entries to correct the following errors:

The process of initially recording a business transaction is called

The process of recording a transaction in the journal is called

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

This journal entry will

In which of the following types of accounts are increases recorded by debits?

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Normal balances appear on the side that increases the account balance.

Which of the following describes the classification and normal balance of the fees earned account?

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.

Office supplies were sold by Ari's Alarm Service at cost to another repair shop, with cash received. Which of the following entries for Ari's Alarm Service records this transaction?

Prarie Clinic purchased X-ray equipment for $4,000, paid $1,275 down, with the remainder to be paid later. The correct entry would be

Which of the following entries records the acquisition of office supplies on account?

Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.

Accounts are classified in the ledger

All of the following statements regarding a horizontal analysis are true except

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