Question 1

Total dollar amount of the debits equal the total dollar amount of the credits in the ledger can be verified through:

Accepted Answer

A)  ledger 
B)  trial balance 
C)  account 
D)  balance sheet 
A)  ledger 
B)  trial balance 
C)  account 
D)  balance sheet B

Question 2

Revenue accounts are increased by credits.

Accepted Answer

A) True 
 B)False  True

Question 3

Expenses can result from:

Accepted Answer

A)  increasing owner's equity. 
B)  consuming services. 
C)  using up liabilities. 
D)  all are true. 
A)  increasing owner's equity. 
B)  consuming services. 
C)  using up liabilities. 
D)  all are true. B

Question 4

Which are the parts of the T account?

Accepted Answer

A)  title, date, total 
B)  date, debit side, credit side 
C)  title, debit side, credit side 
D)  title, debit side, total 
A)  title, date, total 
B)  date, debit side, credit side 
C)  title, debit side, credit side 
D)  title, debit side, total

Question 5

An account has three parts to it; a title, an increase side, and a decrease side.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is not true about liabilities?

Accepted Answer

A)  Liabilities are debts owed to outsiders. 
B)  Account titles of liabilities often include the term "payable". 
C)  Cash received before services are performed are considered to be liabilities. 
D)  Liabilities do not include wages owed to employees of the company. 
A)  Liabilities are debts owed to outsiders. 
B)  Account titles of liabilities often include the term "payable". 
C)  Cash received before services are performed are considered to be liabilities. 
D)  Liabilities do not include wages owed to employees of the company.

Question 7

On September 1st, Erika Company purchased land for $47,500 cash. Write the journal entry in the space below.

Accepted Answer

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

Question 8

Liabilities are debts owed by the business entity.

Accepted Answer

A) True 
 B)False

Question 9

On January 1, 2010, Cary Parsons established a catering service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following this list are the transactions that occurred in Parsons' first month of operation. 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, 2010, Cary Parsons established...

Question 10

Which of the following will increase owner's equity?

Accepted Answer

A)  Expenses > revenues 
B)  the owner draws money for personal use 
C)  Revenues > expenses 
D)  Cash is received from customers on account. 
A)  Expenses > revenues 
B)  the owner draws money for personal use 
C)  Revenues > expenses 
D)  Cash is received from customers on account.

Question 11

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 12

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

Accepted Answer

A)  liabilities 
B)  owner's capital 
C)  drawing 
D)  revenues 
A)  liabilities 
B)  owner's capital 
C)  drawing 
D)  revenues

Question 13

The owner's equity will be reduced by all of the following accounts except:

Accepted Answer

A)  Revenues 
B)  Expenses 
C)  Drawing account 
D)  All are true. 
A)  Revenues 
B)  Expenses 
C)  Drawing account 
D)  All are true.

Question 14

The T account got its name because it resembles the letter "T."

Accepted Answer

A) True 
 B)False

Question 15

Of the following financial reports, which one is the one that will determine if the accounting equation is in balance?

Accepted Answer

A)  Journal entry 
B)  Income statement 
C)  Trial balance 
D)  Account reconciliation 
A)  Journal entry 
B)  Income statement 
C)  Trial balance 
D)  Account reconciliation

Question 16

A credit to the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following entries records the collection of cash from cash customers?

Accepted Answer

A)  Fees Earned, debit; Cash, credit 
B)  Fees Earned, debit; Accounts Receivable, credit 
C)  Cash, debit; Fees Earned, credit 
D)  Accounts Receivable, debit; Fees Earned, credit 
A)  Fees Earned, debit; Cash, credit 
B)  Fees Earned, debit; Accounts Receivable, credit 
C)  Cash, debit; Fees Earned, credit 
D)  Accounts Receivable, debit; Fees Earned, credit

Question 18

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 19

All owner's equity accounts record increases to the accounts with credits.

Accepted Answer

A) True 
 B)False

Question 20

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.
Journal entries:
         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 the each incorrect posting should have been made.

Accepted Answer

(1) The bookkeeper incorrectly posted th

Exam 2: Analyzing Transactions

Total dollar amount of the debits equal the total dollar amount of the credits in the ledger can be verified through:

Revenue accounts are increased by credits.

Expenses can result from:

Which are the parts of the T account?

An account has three parts to it; a title, an increase side, and a decrease side.

Which of the following statements is not true about liabilities?

On September 1st, Erika Company purchased land for $47,500 cash. Write the journal entry in the space below.

Liabilities are debts owed by the business entity.

Which of the following will increase owner's equity?

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.

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

The owner's equity will be reduced by all of the following accounts except:

The T account got its name because it resembles the letter "T."

Of the following financial reports, which one is the one that will determine if the accounting equation is in balance?

A credit to the cash account will increase the account.

Which of the following entries records the collection of cash from cash customers?

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

All owner's equity accounts record increases to the accounts with credits.

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

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