Question 1

On September 1st, Erika Company purchased land for $47,500 cash. Prepare the journal entry to record this transaction.

Accepted Answer

The answer of On September 1st, Erika Company purchased land...

Question 2

Prepare a journal entry on March 27 for the payment of $8,000 in dividends.

Accepted Answer

The answer of Prepare a journal entry on March 27...

Question 3

Which of the following is not considered to be a liability?

Accepted Answer

A)  Wages Payable 
B)  Accounts Receivable 
C)  Unearned Revenues 
D)  Accounts Payable 
A)  Wages Payable 
B)  Accounts Receivable 
C)  Unearned Revenues 
D)  Accounts Payable

Question 4

Accounts payable are accounts that you expect will be paid to you.

Accepted Answer

A) True 
 B)False

Question 5

A cash payment is recorded on the cash account as a

Accepted Answer

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

Question 6

The chart of accounts should be the same for each business.

Accepted Answer

A) True 
 B)False

Question 7

The chart of accounts for Miguel Corporation includes the following:   On journal page 3, the following transaction was found:
$\begin{array}{|l|l|l|}
\hline & 640 & \text { Cash } \
\hline 640 & & \text { FeesEarned } \
\hline
\end{array}$ What are the posting references that will be found in the journal entry?

Accepted Answer

A)  41 and 11, respectively 
B)  3 only 
C)  11 and 41, respectively 
D)  11 and 32, respectively 
A)  41 and 11, respectively 
B)  3 only 
C)  11 and 41, respectively 
D)  11 and 32, respectively

Question 8

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.

Accepted Answer

A) True 
 B)False

Question 9

Journal entries can have more than two accounts as long as the debits equal the credits.

Accepted Answer

A) True 
 B)False

Question 10

The normal balance of the dividends account is a debit.

Accepted Answer

A) True 
 B)False

Question 11

Prepare a trial balance, listing the following accounts in proper sequence. The accounts (all normal balances) were taken from the ledger of Sophie Designs Co. on April 30, 2010.

Accepted Answer

The answer of Prepare a trial balance, listing the following...

Question 12

For a month's transactions for a typical medium-sized business, the salary expense account is likely to have only credit entries.

Accepted Answer

A) True 
 B)False

Question 13

On October 17th, Nikle Company purchased a building and a plot of land for $750,000. The building was valued at $500,000 while the land carried a value of $250,000. Nikle paid $300,000 down in cash and signed a note payable for the balance. Prepare the journal entry to record this transaction.

Accepted Answer

The answer of On October 17th, Nikle Company purchased a...

Question 14

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

Accepted Answer

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

Question 15

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

Accepted Answer

A)  liabilities 
B)  retained earnings 
C)  dividends 
D)  revenues 
A)  liabilities 
B)  retained earnings 
C)  dividends 
D)  revenues

Question 16

The chart of accounts for the Corning Corporation includes the following:   On journal page 3, the following transaction was found:
  What is the posting reference that will be found in the Prepaid Insurance account?

Accepted Answer

A)  11 
B)  15 
C)  3 
D)  none of these 
A)  11 
B)  15 
C)  3 
D)  none of these

Question 17

On October 30th, JumpStart paid its only stockholder, Damien Lawson, a $3,300 cash dividend. Journalize this event.

Accepted Answer

The answer of On October 30th, JumpStart paid its only...

Question 18

The balance of the account is determined by

Accepted Answer

A)  adding all of the debits to all of the credits. 
B)  always subtracting the debits from the credits. 
C)  always subtracting the credits from the debits. 
D)  adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum. 
A)  adding all of the debits to all of the credits. 
B)  always subtracting the debits from the credits. 
C)  always subtracting the credits from the debits. 
D)  adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum.

Question 19

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Accepted Answer

A)  Cash, debit; Wages Expense, credit 
B)  Wages Payable, debit; Wages Expense, credit 
C)  Wages Expense, debit, Cash, credit 
D)  Cash, debit; Wages Payable, credit 
A)  Cash, debit; Wages Expense, credit 
B)  Wages Payable, debit; Wages Expense, credit 
C)  Wages Expense, debit, Cash, credit 
D)  Cash, debit; Wages Payable, credit

Question 20

The ____ is where a transaction can first be found on the accounting records.

Accepted Answer

A)  chart of accounts 
B)  income statement 
C)  balance sheet 
D)  journal 
A)  chart of accounts 
B)  income statement 
C)  balance sheet 
D)  journal

On September 1st, Erika Company purchased land for $47,500 cash. Prepare the journal entry to record this transaction.

Prepare a journal entry on March 27 for the payment of $8,000 in dividends.

Which of the following is not considered to be a liability?

Accounts payable are accounts that you expect will be paid to you.

A cash payment is recorded on the cash account as a

The chart of accounts should be the same for each business.

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.

Journal entries can have more than two accounts as long as the debits equal the credits.

The normal balance of the dividends account is a debit.

Prepare a trial balance, listing the following accounts in proper sequence. The accounts (all normal balances) were taken from the ledger of Sophie Designs Co. on April 30, 2010.

For a month's transactions for a typical medium-sized business, the salary expense account is likely to have only credit entries.

On October 17th, Nikle Company purchased a building and a plot of land for $750,000. The building was valued at $500,000 while the land carried a value of $250,000. Nikle paid $300,000 down in cash and signed a note payable for the balance. Prepare the journal entry to record this transaction.

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

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

The chart of accounts for the Corning Corporation includes the following: On journal page 3, the following transaction was found: What is the posting reference that will be found in the Prepaid Insurance account?

On October 30th, JumpStart paid its only stockholder, Damien Lawson, a $3,300 cash dividend. Journalize this event.

The balance of the account is determined by

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

The ____ is where a transaction can first be found on the accounting records.

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

On September 1st, Erika Company purchased land for $47,500 cash. Prepare the journal entry to record this transaction.

Prepare a journal entry on March 27 for the payment of $8,000 in dividends.

Which of the following is not considered to be a liability?

Accounts payable are accounts that you expect will be paid to you.

A cash payment is recorded on the cash account as a

The chart of accounts should be the same for each business.

The chart of accounts for Miguel Corporation includes the following: On journal page 3, the following transaction was found: 640 Cash 640 FeesEarned What are the posting references that will be found in the journal entry?

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.

Journal entries can have more than two accounts as long as the debits equal the credits.

The normal balance of the dividends account is a debit.

Prepare a trial balance, listing the following accounts in proper sequence. The accounts (all normal balances) were taken from the ledger of Sophie Designs Co. on April 30, 2010.

For a month's transactions for a typical medium-sized business, the salary expense account is likely to have only credit entries.

On October 17th, Nikle Company purchased a building and a plot of land for $750,000. The building was valued at $500,000 while the land carried a value of $250,000. Nikle paid $300,000 down in cash and signed a note payable for the balance. Prepare the journal entry to record this transaction.

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

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

The chart of accounts for the Corning Corporation includes the following: On journal page 3, the following transaction was found: What is the posting reference that will be found in the Prepaid Insurance account?

On October 30th, JumpStart paid its only stockholder, Damien Lawson, a $3,300 cash dividend. Journalize this event.

The balance of the account is determined by

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

The ____ is where a transaction can first be found on the accounting records.

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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