Question 1

Which of the following group of accounts are increased with a debit?

Accepted Answer

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

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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...

Question 4

Which side of the account increases a cash account?

Accepted Answer

A)  credit 
B)  neither a debit or a credit 
C)  debit 
D)  either a debit or a credit 
A)  credit 
B)  neither a debit or a credit 
C)  debit 
D)  either a debit or a credit

Question 5

On November 1st, Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land. Prepare the journal entry to record this transaction.

Accepted Answer

The answer of On November 1st, Nikle Company made a...

Question 6

A dividends account records amounts paid to stockholders.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Which of the following is not a correct rule of debits and credits?

Accepted Answer

A)  assets, expenses, and dividends are increased by debits 
B)  assets are decreased by credits and have a normal debit balance 
C)  liabilities, revenues, and retained earnings are increased by credits 
D)  the normal balance for revenues and expenses is a credit 
A)  assets, expenses, and dividends are increased by debits 
B)  assets are decreased by credits and have a normal debit balance 
C)  liabilities, revenues, and retained earnings are increased by credits 
D)  the normal balance for revenues and expenses is a credit

Question 9

Below is the unadjusted trial balance for Dawson Designs at December 31, 2011 - the end of its first year in business.
(1) Identify the errors in the following trial balance. All accounts have normal balances.
(2) Prepare a corrected trial balance.

Accepted Answer

(1)
a. The debit column is added incorre

Question 10

Which of the following is true about a T account?

Accepted Answer

A)  The left-hand side of the T account is called the debit side. 
B)  The left-hand side of the T account is called the credit side. 
C)  The right-hand side of the T account is called the debit side. 
D)  None of these are true. 
A)  The left-hand side of the T account is called the debit side. 
B)  The left-hand side of the T account is called the credit side. 
C)  The right-hand side of the T account is called the debit side. 
D)  None of these are true.

Question 11

The chart of accounts for Miguel Corporation includes the following:   On journal page 5, the following transaction was found:
  What is the posting reference that will be found in the Salaries Expense account?

Accepted Answer

A)  5 
B)  11 
C)  54 
D)  none of these 
A)  5 
B)  11 
C)  54 
D)  none of these

Question 12

When a company issues new shares of stock, the capital stock account increases due to revenue being earned.

Accepted Answer

A) True 
 B)False

Question 13

Journalizing is the process of entering amounts in the ledger.

Accepted Answer

A) True 
 B)False

Question 14

The chart of accounts is designed to

Accepted Answer

A)  alphabetize the accounts to make reading easier for its financial statement users 
B)  analyze the accounts and organize them in order of dollar amount to simplify the accounting information for users 
C)  summarize the transactions and determine their ending balances 
D)  meet the information needs of a company and other financial statement users 
A)  alphabetize the accounts to make reading easier for its financial statement users 
B)  analyze the accounts and organize them in order of dollar amount to simplify the accounting information for users 
C)  summarize the transactions and determine their ending balances 
D)  meet the information needs of a company and other financial statement users

Question 15

Cash was paid by Ari's Alarm Service to creditors on account. Which of the following entries for Ari's Alarm Service records this transaction?

Accepted Answer

A)  Cash, debit; Retained Earnings, credit 
B)  Accounts Payable, debit; Cash, credit 
C)  Accounts Receivable, debit; Cash, credit 
D)  Accounts Payable, debit; Account Receivable, credit 
A)  Cash, debit; Retained Earnings, credit 
B)  Accounts Payable, debit; Cash, credit 
C)  Accounts Receivable, debit; Cash, credit 
D)  Accounts Payable, debit; Account Receivable, credit

Question 16

The Post. Ref. columns are used to trace transactions from the journal to the accounts. What will be entered in the Post. Ref. column of (a) the journal and (b) the account?

Accepted Answer

A)  (a) the amount of the debit or credit (b) the journal page number 
B)  (a) the journal page number (b) the date of the transaction 
C)  (a) the journal page number, (b) the account number 
D)  (a) the account number, (b) the journal page number 
A)  (a) the amount of the debit or credit (b) the journal page number 
B)  (a) the journal page number (b) the date of the transaction 
C)  (a) the journal page number, (b) the account number 
D)  (a) the account number, (b) the journal page number

Question 17

The dividends account is an example of an expense.

Accepted Answer

A) True 
 B)False

Question 18

Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations.

Accepted Answer

The answer of Journalize the following five transactions for Nexium...

Question 19

Which of the following entries records the cash sale of capital stock to stockholders?

Accepted Answer

A)  debit Capital Stock; credit Cash 
B)  debit Cash; credit Capital Stock 
C)  debit Cash; credit Revenue 
D)  debit Revenue; credit Cash 
A)  debit Capital Stock; credit Cash 
B)  debit Cash; credit Capital Stock 
C)  debit Cash; credit Revenue 
D)  debit Revenue; credit Cash

Question 20

On January 1, 2011, Cary Parsons established Cary's Catering Service. Listed below are accounts to use for transactions (a) through (e), each identified by a number. Following this list are the transactions that occurred during the first month of operations. 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 On January 1, 2011, Cary Parsons established...

Which of the following group of accounts are increased with a debit?

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

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

Which side of the account increases a cash account?

On November 1st, Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land. Prepare the journal entry to record this transaction.

A dividends account records amounts paid to stockholders.

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

Which of the following is not a correct rule of debits and credits?

Below is the unadjusted trial balance for Dawson Designs at December 31, 2011 - the end of its first year in business. (1) Identify the errors in the following trial balance. All accounts have normal balances. (2) Prepare a corrected trial balance.

Which of the following is true about a T account?

The chart of accounts for Miguel Corporation includes the following: On journal page 5, the following transaction was found: What is the posting reference that will be found in the Salaries Expense account?

When a company issues new shares of stock, the capital stock account increases due to revenue being earned.

Journalizing is the process of entering amounts in the ledger.

The chart of accounts is designed to

Cash was paid by Ari's Alarm Service to creditors on account. Which of the following entries for Ari's Alarm Service records this transaction?

The Post. Ref. columns are used to trace transactions from the journal to the accounts. What will be entered in the Post. Ref. column of (a) the journal and (b) the account?

The dividends account is an example of an expense.

Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations.

Which of the following entries records the cash sale of capital stock to stockholders?

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 group of accounts are increased with a debit?

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

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

Which side of the account increases a cash account?

On November 1st, Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land. Prepare the journal entry to record this transaction.

A dividends account records amounts paid to stockholders.

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

Which of the following is not a correct rule of debits and credits?

Below is the unadjusted trial balance for Dawson Designs at December 31, 2011 - the end of its first year in business. (1) Identify the errors in the following trial balance. All accounts have normal balances. (2) Prepare a corrected trial balance.

Which of the following is true about a T account?

The chart of accounts for Miguel Corporation includes the following: On journal page 5, the following transaction was found: What is the posting reference that will be found in the Salaries Expense account?

When a company issues new shares of stock, the capital stock account increases due to revenue being earned.

Journalizing is the process of entering amounts in the ledger.

The chart of accounts is designed to

Cash was paid by Ari's Alarm Service to creditors on account. Which of the following entries for Ari's Alarm Service records this transaction?

The Post. Ref. columns are used to trace transactions from the journal to the accounts. What will be entered in the Post. Ref. column of (a) the journal and (b) the account?

The dividends account is an example of an expense.

Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations.

Which of the following entries records the cash sale of capital stock to stockholders?

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