Question 1

When an account receivable is collected in cash, the total assets of the business increase.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following groups of accounts have a normal debit balance?

Accepted Answer

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

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 locate errors 
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 locate errors

Question 4

A trial balance determines the accuracy of the numbers.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Accepted Answer

A) True 
 B)False

Question 7

Prepare a journal entry for the purchase of a truck on April 4 for $85,700, paying $15,000 cash and the remainder on account.

Accepted Answer

The answer of Prepare a journal entry for the purchase...

Question 8

(a) On October 10th, Nikle Company purchased supplies worth $2,750 on account. Prepare the journal entry to record this transaction.
(b) Nikle Company paid for the supplies purchased in (a) on October 25th. Prepare the journal entry to record this transaction.

Accepted Answer

The answer of (a) On October 10th, Nikle Company purchased...

Question 9

A credit to the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 10

On November 30th, it was discovered that a $550 of a transaction recording the purchase of office supplies was really office equipment. Prepare the journal entry to correct this situation.

Accepted Answer

The answer of On November 30th, it was discovered that...

Question 11

A group of related accounts that make up a complete unit is called a trial balance.

Accepted Answer

A) True 
 B)False

Question 12

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equal.

Accepted Answer

A) True 
 B)False

Question 13

Revenue accounts are increased by credits.

Accepted Answer

A) True 
 B)False

Question 14

To determine the balance in an account, always subtract credits from debits.

Accepted Answer

A) True 
 B)False

Question 15

Which is the best explanation for this journal entry?

Accepted Answer

A)  Purchased equipment, paid cash of $2,000, with the remainder to be paid in the future. 
B)  Purchased equipment, paid cash of $4,700, with the remainder to be received in the future. 
C)  Purchased equipment, paid cash for the entire amount. 
D)  Purchased equipment on credit. 
A)  Purchased equipment, paid cash of $2,000, with the remainder to be paid in the future. 
B)  Purchased equipment, paid cash of $4,700, with the remainder to be received in the future. 
C)  Purchased equipment, paid cash for the entire amount. 
D)  Purchased equipment on credit.

Question 16

Exhibit 2-1
All nine transactions for Ralston Sports Co. for September 2011, the first month of operations, are recorded in the following T accounts:
           Refer to Exhibit 2-1. Prepare a trial balance, listing the accounts in their proper order.

Accepted Answer

The answer of Exhibit 2-1
All nine transactions for Ralston Sports...

Question 17

Which of the following will increase retained earnings?

Accepted Answer

A)  Expenses > revenues. 
B)  Dividends are declared and paid. 
C)  Revenues > expenses. 
D)  Cash is received from customers on account. 
A)  Expenses > revenues. 
B)  Dividends are declared and paid. 
C)  Revenues > expenses. 
D)  Cash is received from customers on account.

Question 18

The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.

Accepted Answer

A) True 
 B)False

Question 19

The erroneous arrangement of digits, such as writing $45 as $54, is called a slide.

Accepted Answer

A) True 
 B)False

Question 20

Depending on the account title, the right side of the account is referred to as the credit side.

Accepted Answer

A) True 
 B)False

When an account receivable is collected in cash, the total assets of the business increase.

Which of the following groups of accounts have a normal debit balance?

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

A trial balance determines the accuracy of the numbers.

A credit may signify a

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Prepare a journal entry for the purchase of a truck on April 4 for $85,700, paying $15,000 cash and the remainder on account.

(a) On October 10th, Nikle Company purchased supplies worth $2,750 on account. Prepare the journal entry to record this transaction. (b) Nikle Company paid for the supplies purchased in (a) on October 25th. Prepare the journal entry to record this transaction.

A credit to the cash account will increase the account.

On November 30th, it was discovered that a $550 of a transaction recording the purchase of office supplies was really office equipment. Prepare the journal entry to correct this situation.

A group of related accounts that make up a complete unit is called a trial balance.

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equal.

Revenue accounts are increased by credits.

To determine the balance in an account, always subtract credits from debits.

Which is the best explanation for this journal entry?

Exhibit 2-1 All nine transactions for Ralston Sports Co. for September 2011, the first month of operations, are recorded in the following T accounts: Refer to Exhibit 2-1. Prepare a trial balance, listing the accounts in their proper order.

Which of the following will increase retained earnings?

The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.

The erroneous arrangement of digits, such as writing $45 as $54, is called a slide.

Depending on the account title, the right side of the account is referred to as the credit side.

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

When an account receivable is collected in cash, the total assets of the business increase.

Which of the following groups of accounts have a normal debit balance?

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

A trial balance determines the accuracy of the numbers.

A credit may signify a

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Prepare a journal entry for the purchase of a truck on April 4 for $85,700, paying $15,000 cash and the remainder on account.

(a) On October 10th, Nikle Company purchased supplies worth $2,750 on account. Prepare the journal entry to record this transaction. (b) Nikle Company paid for the supplies purchased in (a) on October 25th. Prepare the journal entry to record this transaction.

A credit to the cash account will increase the account.

On November 30th, it was discovered that a $550 of a transaction recording the purchase of office supplies was really office equipment. Prepare the journal entry to correct this situation.

A group of related accounts that make up a complete unit is called a trial balance.

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equal.

Revenue accounts are increased by credits.

To determine the balance in an account, always subtract credits from debits.

Which is the best explanation for this journal entry?

Exhibit 2-1 All nine transactions for Ralston Sports Co. for September 2011, the first month of operations, are recorded in the following T accounts: Refer to Exhibit 2-1. Prepare a trial balance, listing the accounts in their proper order.

Which of the following will increase retained earnings?

The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.

The erroneous arrangement of digits, such as writing $45 as $54, is called a slide.

Depending on the account title, the right side of the account is referred to as the credit side.

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