Question 1

The cash account will always be debited.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following entries records the receipt of a utility bill from the water company?

Accepted Answer

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

Question 3

On January 7th, Damien Lawson deposited $95,000 in a bank account in the name of JumpStart in return for shares of stock in the corporation. Prepare the journal entry to record this transaction.

Accepted Answer

The answer of On January 7th, Damien Lawson deposited $95,000...

Question 4

All of the following accounts are increased with a debit except

Accepted Answer

A)  Unearned Revenues 
B)  Land 
C)  Accounts Receivable 
D)  Cash 
A)  Unearned Revenues 
B)  Land 
C)  Accounts Receivable 
D)  Cash

Question 5

An account is said to have a debit balance if

Accepted Answer

A)  the amount of the debits exceeds the amount of the credits 
B)  there are more entries on the debit side than on the credit side 
C)  its normal balance is debit without regard to the amounts or number of entries on the debit side 
D)  the first entry of the accounting period was posted on the debit side 
A)  the amount of the debits exceeds the amount of the credits 
B)  there are more entries on the debit side than on the credit side 
C)  its normal balance is debit without regard to the amounts or number of entries on the debit side 
D)  the first entry of the accounting period was posted on the debit side

Question 6

Accounts in the ledger are usually maintained in alphabetical order.

Accepted Answer

A) True 
 B)False

Question 7

Prepaid expenses are an example of an expense.

Accepted Answer

A) True 
 B)False

Question 8

Even when a trial balance is in balance, there may be errors in the individual accounts.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

Transactions are listed in the journal chronologically.

Accepted Answer

A) True 
 B)False

Question 12

Posting a transaction twice will cause the trial balance totals to be equal.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

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

Question 14

A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should

Accepted Answer

A)  make no entry until the cash is received 
B)  Cash, debit; Accounts Receivable, credit 
C)  Cash, debit; Fees Earned, credit 
D)  Accounts Receivable, debit; Fees Earned, credit 
A)  make no entry until the cash is received 
B)  Cash, debit; Accounts Receivable, credit 
C)  Cash, debit; Fees Earned, credit 
D)  Accounts Receivable, debit; Fees Earned, credit

Question 15

Net income will result when

Accepted Answer

A) revenues (credits) > expenses (debits) B) revenues (debits) > expenses (credits) C) expenses (credits) < revenues (debits) D) revenues (credits) = expenses (debits) A) revenues (credits) > expenses (debits) B) revenues (debits) > expenses (credits) C) expenses (credits) < revenues (debits) D) revenues (credits) = expenses (debits)

Question 16

In which order are the accounts listed in the chart of accounts?

Accepted Answer

A)  assets, expenses, liabilities, stockholders' equity, revenues 
B)  stockholders' equity, assets, liabilities, revenues, expenses 
C)  assets, liabilities, stockholders' equity, revenues, expenses 
D)  assets, liabilities, revenues, expenses, stockholders' equity 
A)  assets, expenses, liabilities, stockholders' equity, revenues 
B)  stockholders' equity, assets, liabilities, revenues, expenses 
C)  assets, liabilities, stockholders' equity, revenues, expenses 
D)  assets, liabilities, revenues, expenses, stockholders' equity

Question 17

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 18

The journal includes both debit and credit accounts for each transaction.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following stockholder equity accounts follow the same debit and credit rules as liabilities?

Accepted Answer

A)  Capital Stock only 
B)  Dividends only 
C)  Retained Earnings and Capital Stock 
D)  Retained Earnings, Capital Stock, and Dividends 
A)  Capital Stock only 
B)  Dividends only 
C)  Retained Earnings and Capital Stock 
D)  Retained Earnings, Capital Stock, and Dividends

Question 20

What is the best explanation for this journal entry?

Accepted Answer

A)  Purchased supplies with cash. 
B)  Returned supplies previously purchased. 
C)  Purchased supplies on account. 
D)  Paid accounts payable. 
A)  Purchased supplies with cash. 
B)  Returned supplies previously purchased. 
C)  Purchased supplies on account. 
D)  Paid accounts payable.

The cash account will always be debited.

Which of the following entries records the receipt of a utility bill from the water company?

On January 7th, Damien Lawson deposited $95,000 in a bank account in the name of JumpStart in return for shares of stock in the corporation. Prepare the journal entry to record this transaction.

All of the following accounts are increased with a debit except

An account is said to have a debit balance if

Accounts in the ledger are usually maintained in alphabetical order.

Prepaid expenses are an example of an expense.

Even when a trial balance is in balance, there may be errors in the individual accounts.

Which group of accounts is comprised of only assets?

The classification and normal balance of the dividends account is

Transactions are listed in the journal chronologically.

Posting a transaction twice will cause the trial balance totals to be equal.

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

A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should

Net income will result when

In which order are the accounts listed in the chart of accounts?

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

The journal includes both debit and credit accounts for each transaction.

Which of the following stockholder equity accounts follow the same debit and credit rules as liabilities?

What is the best explanation for this journal entry?

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 cash account will always be debited.

Which of the following entries records the receipt of a utility bill from the water company?

On January 7th, Damien Lawson deposited $95,000 in a bank account in the name of JumpStart in return for shares of stock in the corporation. Prepare the journal entry to record this transaction.

All of the following accounts are increased with a debit except

An account is said to have a debit balance if

Accounts in the ledger are usually maintained in alphabetical order.

Prepaid expenses are an example of an expense.

Even when a trial balance is in balance, there may be errors in the individual accounts.

Which group of accounts is comprised of only assets?

The classification and normal balance of the dividends account is

Transactions are listed in the journal chronologically.

Posting a transaction twice will cause the trial balance totals to be equal.

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

A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should

Net income will result when

In which order are the accounts listed in the chart of accounts?

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

The journal includes both debit and credit accounts for each transaction.

Which of the following stockholder equity accounts follow the same debit and credit rules as liabilities?

What is the best explanation for this journal entry?

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