Question 1

Discuss and describe how errors in accounts can be found.

Accepted Answer

1) through audit pro

Question 2

All of the following occur with a double-entry accounting system except:

Accepted Answer

A)  The accounting equation remains in balance. 
B)  The sum of all debits is always equal to the sum of all credits in each journal entry. 
C)  Each business transaction will have only two entries. 
D)  Every transaction affects at least two accounts. 
A)  The accounting equation remains in balance. 
B)  The sum of all debits is always equal to the sum of all credits in each journal entry. 
C)  Each business transaction will have only two entries. 
D)  Every transaction affects at least two accounts.

Question 3

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following applications of the rules of debit and credit is true?

Accepted Answer

A)  decrease Prepaid Insurance with a credit and the normal balance is a credit 
B)  increase Accounts Payable with a credit and the normal balance is a debit 
C)  increase Supplies Expense with a debit and the normal balance is a debit 
D)  decrease Cash with a debit and the normal balance is a credit 
A)  decrease Prepaid Insurance with a credit and the normal balance is a credit 
B)  increase Accounts Payable with a credit and the normal balance is a debit 
C)  increase Supplies Expense with a debit and the normal balance is a debit 
D)  decrease Cash with a debit and the normal balance is a credit

Question 5

Even when a trial balance is in balance, there may be errors in the individual accounts.

Accepted Answer

A) True 
 B)False

Question 6

On the chart of accounts, the balance sheet accounts are normally listed in the following order

Accepted Answer

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

Question 7

The accounts in the ledger of Monroe Entertainment Co. are listed in alphabetical order. All accounts have normal balances.   Prepare a trial balance. The total of the debits is

Accepted Answer

A)  $13,900 
B)  $11,200 
C)  $12,700 
D)  $9,700 
A)  $13,900 
B)  $11,200 
C)  $12,700 
D)  $9,700

Question 8

Net income will result when

Accepted Answer

A)  revenues (credits) > expenses (debits) 
B)  revenues (debits) > expenses (credits) 
C)  expenses (credits) = revenues (debits) 
D)  revenues (credits) = expenses (debits) 
A)  revenues (credits) > expenses (debits) 
B)  revenues (debits) > expenses (credits) 
C)  expenses (credits) = revenues (debits) 
D)  revenues (credits) = expenses (debits)

Question 9

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

Accepted Answer

A) True 
 B)False

Question 10

When an account receivable is collected in cash, the total assets of the business increase.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Accepted Answer

A)  Prepaid Rent, debit; Rent Revenue, credit. 
B)  Cash, debit; Unearned Rent, credit. 
C)  Cash, debit; Prepaid Rent, credit. 
D)  Cash, debit; Rent Expense credit. 
A)  Prepaid Rent, debit; Rent Revenue, credit. 
B)  Cash, debit; Unearned Rent, credit. 
C)  Cash, debit; Prepaid Rent, credit. 
D)  Cash, debit; Rent Expense credit.

Question 12

The double-entry accounting system records each transaction twice.

Accepted Answer

A) True 
 B)False

Question 13

On November 10th, JumpStart Co. provides $2,900 in services to clients. At the time of service, the clients paid $600.00 in cash and put the balance on account.
(a) Journalize this event.
(b) On November 20th, JumpStart Co. clients paid an additional $900 on their accounts due. Journalize this event.
(c) Calculate the amount of accounts receivable on November 30th.

Accepted Answer

@#IMG-DLM&_TB2013_00

Question 14

The normal balance of an expense account is a credit.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following describes the classification and normal balance of the fees earned account?

Accepted Answer

A)  asset, credit 
B)  liability, credit 
C)  owner's equity, debit 
D)  revenue, credit 
A)  asset, credit 
B)  liability, credit 
C)  owner's equity, debit 
D)  revenue, credit

Question 16

Debiting the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 17

The journal includes both debit and credit accounts for each transaction.

Accepted Answer

A) True 
 B)False

Question 18

Unearned Revenues account is an example of a liability.

Accepted Answer

A) True 
 B)False

Question 19

Answer the following questions for each of the errors listed below, considered individually:
   Present your answers in columnar form, using the following headings:
   Errors:

Accepted Answer

The answer of Answer the following questions for each of...

Question 20

Which of the following accounts are debited to record increase in balances?

Accepted Answer

A)  assets and liabilities 
B)  drawing and liabilities 
C)  expenses and liabilities 
D)  assets and expenses 
A)  assets and liabilities 
B)  drawing and liabilities 
C)  expenses and liabilities 
D)  assets and expenses

Exam 2: Analyzing Transactions

Discuss and describe how errors in accounts can be found.

All of the following occur with a double-entry accounting system except:

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

Which of the following applications of the rules of debit and credit is true?

Even when a trial balance is in balance, there may be errors in the individual accounts.

On the chart of accounts, the balance sheet accounts are normally listed in the following order

The accounts in the ledger of Monroe Entertainment Co. are listed in alphabetical order. All accounts have normal balances. Prepare a trial balance. The total of the debits is

Net income will result when

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

When an account receivable is collected in cash, the total assets of the business increase.

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

The double-entry accounting system records each transaction twice.

The normal balance of an expense account is a credit.

Which of the following describes the classification and normal balance of the fees earned account?

Debiting the cash account will increase the account.

The journal includes both debit and credit accounts for each transaction.

Unearned Revenues account is an example of a liability.

Answer the following questions for each of the errors listed below, considered individually: Present your answers in columnar form, using the following headings: Errors:

Which of the following accounts are debited to record increase in balances?

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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