Question 1

What is the best explanation for this journal entry?

Accepted Answer

A)  Received cash for services performed 
B)  Received cash for services to be performed in the future. 
C)  Paid cash in advance for services to be done. 
D)  Paid cash for services to be performed. 
A)  Received cash for services performed 
B)  Received cash for services to be performed in the future. 
C)  Paid cash in advance for services to be done. 
D)  Paid cash for services to be performed.

Question 2

Office supplies purchased by Ari's Alarm Service on account were returned. Which of the following entries for Ari's Alarm Service records this transaction?

Accepted Answer

A)  Cash, debit; Office Supplies, credit 
B)  Office Supplies, debit; Accounts Receivable, credit 
C)  Accounts Payable, debit; Office Supplies, credit 
D)  Office Supplies, debit; Accounts Payable, credit 
A)  Cash, debit; Office Supplies, credit 
B)  Office Supplies, debit; Accounts Receivable, credit 
C)  Accounts Payable, debit; Office Supplies, credit 
D)  Office Supplies, debit; Accounts Payable, credit

Question 3

Debits will increase Unearned Revenues and Revenues.

Accepted Answer

A) True 
 B)False

Question 4

The normal balance of the drawing account is a debit.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Withdrawals decrease owner's equity and are listed on the income statement as a deduction from revenue.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

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 10

The chart of accounts classify the accounts to make identification of the accounts easier. Discuss how companies set up their chart of accounts for use in their business

Accepted Answer

A chart of accounts is set-up

Question 11

Of the following which istrue about assets?

Accepted Answer

A)  Assets include physical and intangible assets. 
B)  Assets include only physical assets. 
C)  Assets are owned solely by the owner of the company. 
D)  Assets are the result of selling products or services to customers. 
A)  Assets include physical and intangible assets. 
B)  Assets include only physical assets. 
C)  Assets are owned solely by the owner of the company. 
D)  Assets are the result of selling products or services to customers.

Question 12

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 13

A chart of accounts is a listing of accounts that make up the journal.

Accepted Answer

A) True 
 B)False

Question 14

Prepaid expenses are an example of an expense.

Accepted Answer

A) True 
 B)False

Question 15

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 notes payable for the balance. In the space below write the journal entry.

Accepted Answer

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

Question 16

If the two totals of a trial balance are not equal, it could be due to

Accepted Answer

A)  failure to record a transaction 
B)  recording the same erroneous amount for both the debit and the credit parts of a transaction 
C)  an error in determining the account balances, such as a balance being incorrectly computed 
D)  recording the same transaction more than once 
A)  failure to record a transaction 
B)  recording the same erroneous amount for both the debit and the credit parts of a transaction 
C)  an error in determining the account balances, such as a balance being incorrectly computed 
D)  recording the same transaction more than once

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  assets, expenses, liabilities, owner's equity, revenues 
B)  owners' equity, assets, liabilities, revenues, expenses 
C)  assets, liabilities, owner's equity, revenues, expenses 
D)  assets, liabilities, revenues, expenses, owners' equity 
A)  assets, expenses, liabilities, owner's equity, revenues 
B)  owners' equity, assets, liabilities, revenues, expenses 
C)  assets, liabilities, owner's equity, revenues, expenses 
D)  assets, liabilities, revenues, expenses, owners' equity

Question 19

Which statement(s) concerning cash is (are) true?

Accepted Answer

A)  cash will always have more debits than credits 
B)  cash will never have a credit balance 
C)  cash is increased by debiting 
D)  all of the above 
A)  cash will always have more debits than credits 
B)  cash will never have a credit balance 
C)  cash is increased by debiting 
D)  all of the above

Question 20

What effect does this journal entry have on the accounts?

Accepted Answer

A)  Decrease accounts payable, increase cash 
B)  Increase cash, decrease accounts payable 
C)  Increase accounts payable, increase cash 
D)  Decrease accounts payable, decrease cash 
A)  Decrease accounts payable, increase cash 
B)  Increase cash, decrease accounts payable 
C)  Increase accounts payable, increase cash 
D)  Decrease accounts payable, decrease cash

Exam 2: Analyzing Transactions

What is the best explanation for this journal entry?

Office supplies purchased by Ari's Alarm Service on account were returned. Which of the following entries for Ari's Alarm Service records this transaction?

Debits will increase Unearned Revenues and Revenues.

The normal balance of the drawing account is a debit.

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

Withdrawals decrease owner's equity and are listed on the income statement as a deduction from revenue.

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

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

The chart of accounts is designed to

The chart of accounts classify the accounts to make identification of the accounts easier. Discuss how companies set up their chart of accounts for use in their business

Of the following which istrue about assets?

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?

A chart of accounts is a listing of accounts that make up the journal.

Prepaid expenses are an example of an expense.

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 notes payable for the balance. In the space below write the journal entry.

If the two totals of a trial balance are not equal, it could be due to

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

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

Which statement(s) concerning cash is (are) true?

What effect does this journal entry have on the accounts?

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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