Question 1

In accordance with the debit and credit rules, which of the following is true?

Accepted Answer

A)  Debits increase assets. 
B)  Credits increase assets. 
C)  Debits increase both assets and capital. 
D)  Credits increase both assets and liabilities. 
A)  Debits increase assets. 
B)  Credits increase assets. 
C)  Debits increase both assets and capital. 
D)  Credits increase both assets and liabilities.

Question 2

A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should

Accepted Answer

A)  make no entry until the cash is received 
B)  Cash, debit; Accounts Receivable, credit 
C)  Cash, debit; Fees Earned, credit 
D)  Accounts Receivable, debit; Fees Earned, credit 
A)  make no entry until the cash is received 
B)  Cash, debit; Accounts Receivable, credit 
C)  Cash, debit; Fees Earned, credit 
D)  Accounts Receivable, debit; Fees Earned, credit

Question 3

Analyze the following transactions as to their effect on the accounting equation.
   Some of the possible effects of a transaction on the accounting equation are listed below:
   Put the appropriate letter next to each transaction.

Accepted Answer

The answer of Analyze the following transactions as to their...

Question 4

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following errors will cause the trial balance totals to be unequal?

Accepted Answer

A)  posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted 
B)  failure to record a transaction or to post a transaction 
C)  recording the same transaction more than once 
D)  recording the same erroneous amount for both the debit and the credit parts of a transaction 
A)  posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted 
B)  failure to record a transaction or to post a transaction 
C)  recording the same transaction more than once 
D)  recording the same erroneous amount for both the debit and the credit parts of a transaction

Question 6

Office supplies were sold by Ari's Alarm Service at cost to another repair shop, with cash received. Which of the following entries for Ari's Alarm Service records this transaction?

Accepted Answer

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

Question 7

The process of transferring the data from the journal to the ledger accounts is posting.

Accepted Answer

A) True 
 B)False

Question 8

Normal balances are the side that increase the account balance.

Accepted Answer

A) True 
 B)False

Question 9

Supplies purchased on account were incorrectly recorded as Office Equipment. The correcting entry would be

Accepted Answer

A)  Supplies, debit; Office Equipment, credit. 
B)  Accounts Receivable, debit; Supplies, credit. 
C)  Office Equipment, debit; Supplies Expense, credit. 
D)  Supplies, debit; Accounts Payable, credit. 
A)  Supplies, debit; Office Equipment, credit. 
B)  Accounts Receivable, debit; Supplies, credit. 
C)  Office Equipment, debit; Supplies Expense, credit. 
D)  Supplies, debit; Accounts Payable, credit.

Question 10

Expenses follow the same debit and credit rules as

Accepted Answer

A)  Revenues 
B)  Drawing Account 
C)  Capital Account 
D)  Liabilities 
A)  Revenues 
B)  Drawing Account 
C)  Capital Account 
D)  Liabilities

Question 11

Which of the following abbreviations is correct?

Accepted Answer

A)  Debit "Dr", Credit "Cd" 
B)  Debit "Db", Credit "Cr" 
C)  Debit "Db", Credit "Cd" 
D)  Debit "Dr", Credit "Cr" 
A)  Debit "Dr", Credit "Cd" 
B)  Debit "Db", Credit "Cr" 
C)  Debit "Db", Credit "Cd" 
D)  Debit "Dr", Credit "Cr"

Question 12

The post reference notation used in the ledger is the account number.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Randomly listed below are the steps for preparing a trial balance:   What is the proper order of these steps?

Accepted Answer

A)  (3), (2), (4), (1) 
B)  (2), (3), (4), (1) 
C)  (3), (2), (1), (4) 
D)  (4), (3), (2), (1) 
A)  (3), (2), (4), (1) 
B)  (2), (3), (4), (1) 
C)  (3), (2), (1), (4) 
D)  (4), (3), (2), (1)

Question 15

Which of the following group of accounts are increased with a debit?

Accepted Answer

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

Question 16

Which of the following is not a correct rule of debits and credits?

Accepted Answer

A)  assets, expenses and withdrawals are increased by debits 
B)  assets are decreased by credits and have a normal debit balance 
C)  liabilities, revenues and owner's equity are increased by credits 
D)  the normal balance for revenues and expenses is a credit 
A)  assets, expenses and withdrawals are increased by debits 
B)  assets are decreased by credits and have a normal debit balance 
C)  liabilities, revenues and owner's equity are increased by credits 
D)  the normal balance for revenues and expenses is a credit

Question 17

Damien Lawson invests $45,000 to initiate the operation of his business, JumpStart, on January 7th. Journalize this transaction.

Accepted Answer

The answer of Damien Lawson invests $45,000 to initiate the...

Question 18

When an owner invests assets in the business, the capital account increases due to revenue being earned.

Accepted Answer

A) True 
 B)False

Question 19

On October 30th Damien Lawson withdraws $3,330 from JumpStart for personal use. Journalize this event.

Accepted Answer

The answer of On October 30th Damien Lawson withdraws $3,330...

Question 20

All nine transactions for Dalton Survey Company for September, the first month of operations, are recorded in the following T accounts:
           Indicate the following for each debit and each credit:
   Present your answers in the following form:

Accepted Answer

The answer of All nine transactions for Dalton Survey Company...

Exam 2: Analyzing Transactions

In accordance with the debit and credit rules, which of the following is true?

A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should

Analyze the following transactions as to their effect on the accounting equation. Some of the possible effects of a transaction on the accounting equation are listed below: Put the appropriate letter next to each transaction.

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Which of the following errors will cause the trial balance totals to be unequal?

Office supplies were sold by Ari's Alarm Service at cost to another repair shop, with cash received. Which of the following entries for Ari's Alarm Service records this transaction?

The process of transferring the data from the journal to the ledger accounts is posting.

Normal balances are the side that increase the account balance.

Supplies purchased on account were incorrectly recorded as Office Equipment. The correcting entry would be

Expenses follow the same debit and credit rules as

Which of the following abbreviations is correct?

The post reference notation used in the ledger is the account number.

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

Randomly listed below are the steps for preparing a trial balance: What is the proper order of these steps?

Which of the following group of accounts are increased with a debit?

Which of the following is not a correct rule of debits and credits?

Damien Lawson invests $45,000 to initiate the operation of his business, JumpStart, on January 7th. Journalize this transaction.

When an owner invests assets in the business, the capital account increases due to revenue being earned.

On October 30th Damien Lawson withdraws $3,330 from JumpStart for personal use. Journalize this event.

All nine transactions for Dalton Survey Company for September, the first month of operations, are recorded in the following T accounts: Indicate the following for each debit and each credit: Present your answers in the following form:

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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