Question 1

The increase side of all accounts is the normal balance.

Accepted Answer

A) True 
 B)False

Question 2

What effects does this journal entry have on the accounts?

Accepted Answer

A)  Increase Cash and increase Land 
B)  Increase Land and decrease Cash 
C)  Decrease Cash and decrease Land 
D)  Increase Cash and decrease Land 
A)  Increase Cash and increase Land 
B)  Increase Land and decrease Cash 
C)  Decrease Cash and decrease Land 
D)  Increase Cash and decrease Land

Question 3

The accounts payable account is listed in the chart of accounts as an asset.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following entries records the receipt of cash from patients on account?

Accepted Answer

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

Question 5

An account is said to have a debit balance if

Accepted Answer

A)  the amount of the debits exceeds the amount of the credits 
B)  there are more entries on the debit side than on the credit side 
C)  there are more entries on the credit side than on the debit side 
D)  the first entry of the accounting period was posted on the debit side 
A)  the amount of the debits exceeds the amount of the credits 
B)  there are more entries on the debit side than on the credit side 
C)  there are more entries on the credit side than on the debit side 
D)  the first entry of the accounting period was posted on the debit side

Question 6

The chart of account for the Miguel Company includes some of the following accounts:   On the journal page 3, the following transaction was found:
  What is the post reference that will be found on the journal entry?

Accepted Answer

A)  41 
B)  3 
C)  11, 41 
D)  11 
A)  41 
B)  3 
C)  11, 41 
D)  11

Question 7

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

Accepted Answer

A) True 
 B)False

Question 8

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

Accepted Answer

The answer of Record the following selected transactions for April...

Question 9

The chart of account for the Corning Company includes some of the following accounts:   On the journal page 3, the following transaction was found:
  What is the post reference that will be found on the journal entry?

Accepted Answer

A)  15, 11 
B)  15 
C)  11 
D)  3 
A)  15, 11 
B)  15 
C)  11 
D)  3

Question 10

A transaction that is recorded in the journal is called a journal entry.

Accepted Answer

A) True 
 B)False

Question 11

The chart of accounts classify the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?

Accepted Answer

A)  1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Expenses, 5-Revenues 
B)  1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Revenues, 5-Expenses 
C)  1-Assets, 2-Owner's Equity, 3-Revenues, 4-Expenses, 5-Drawing 
D)  1-Owner's Equity, 2-Drawing, 3-Revenues, 4-Expenses 
A)  1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Expenses, 5-Revenues 
B)  1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Revenues, 5-Expenses 
C)  1-Assets, 2-Owner's Equity, 3-Revenues, 4-Expenses, 5-Drawing 
D)  1-Owner's Equity, 2-Drawing, 3-Revenues, 4-Expenses

Question 12

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 13

On January 1, 2010, Cary Parsons established a catering service. Listed below are accounts to use for transactions (a) through (d), 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, 2010, Cary Parsons established...

Question 14

A list of the accounts is called

Accepted Answer

A)  ledger 
B)  chart of accounts 
C)  T-Account 
D)  Debit 
A)  ledger 
B)  chart of accounts 
C)  T-Account 
D)  Debit

Question 15

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 16

The classification and normal balance of the drawing account is

Accepted Answer

A)  an expense with a credit balance 
B)  an expense with a debit balance 
C)  a liability with a credit balance 
D)  owner's equity with a debit balance 
A)  an expense with a credit balance 
B)  an expense with a debit balance 
C)  a liability with a credit balance 
D)  owner's equity with a debit balance

Question 17

A debit balance in which of the following accounts would indicate a likely error?

Accepted Answer

A)  Salaries Expense 
B)  Notes Payable 
C)  Edgar Martin, Drawing 
D)  Supplies 
A)  Salaries Expense 
B)  Notes Payable 
C)  Edgar Martin, Drawing 
D)  Supplies

Question 18

The gross increases in owner's equity attributable to business activities are called

Accepted Answer

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

Question 19

A debit may signify a(n)

Accepted Answer

A)  decrease in asset accounts 
B)  decrease in liability accounts 
C)  increase in the capital account 
D)  decrease in the drawing account 
A)  decrease in asset accounts 
B)  decrease in liability accounts 
C)  increase in the capital account 
D)  decrease in the drawing account

Question 20

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

Exam 2: Analyzing Transactions

The increase side of all accounts is the normal balance.

What effects does this journal entry have on the accounts?

The accounts payable account is listed in the chart of accounts as an asset.

Which of the following entries records the receipt of cash from patients on account?

An account is said to have a debit balance if

The chart of account for the Miguel Company includes some of the following accounts: On the journal page 3, the following transaction was found: What is the post reference that will be found on the journal entry?

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

The chart of account for the Corning Company includes some of the following accounts: On the journal page 3, the following transaction was found: What is the post reference that will be found on the journal entry?

A transaction that is recorded in the journal is called a journal entry.

The chart of accounts classify the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?

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

A list of the accounts is called

Which side of the account increases a cash account?

The classification and normal balance of the drawing account is

A debit balance in which of the following accounts would indicate a likely error?

The gross increases in owner's equity attributable to business activities are called

A debit may signify a(n)

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

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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