Question 1

Depending on the account title, the right side of the account is referred to as the credit side.

Accepted Answer

A) True 
 B)False

Question 2

The process of rewriting the information from the journal into the ledger is called

Accepted Answer

A)  sliding 
B)  transposing 
C)  journalizing 
D)  posting 
A)  sliding 
B)  transposing 
C)  journalizing 
D)  posting

Question 3

Journal entries can have more than two accounts as long as the debits equal the credits.

Accepted Answer

A) True 
 B)False

Question 4

Revenues are equal to the difference between cash receipts and cash payments.

Accepted Answer

A) True 
 B)False

Question 5

On January 1, 2010, Cary Parsons established a catering service. Listed below are accounts to use for transactions (a) through (e), 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 6

A credit may signify a

Accepted Answer

A)  decrease in assets 
B)  decrease in liabilities 
C)  decrease in capital 
D)  decrease in revenue 
A)  decrease in assets 
B)  decrease in liabilities 
C)  decrease in capital 
D)  decrease in revenue

Question 7

Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following:

Accepted Answer

The answer of Selected accounts from the ledger of Garrison...

Question 8

Increases and decreases in various types of accounts are listed below. In each case, indicate by "Dr." or "Cr." (a) whether the change in the account would be recorded as a debit or a credit and (b) whether the normal balance of the account is a debit or a credit.

Accepted Answer

The answer of Increases and decreases in various types of...

Question 9

Assets are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 10

All of the following statements regarding a horizontal analysis are true except:

Accepted Answer

A)  A horizontal analysis is used to compare an item in a current statement with the same item in prior statements. 
B)  A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement of cash flows. 
C)  If Fees Earned in 2013 is $125,000 and Fees Earned in 2014 is $143,750, a horizontal analysis will indicate a 15% increase over this period. 
D)  When two statement are compared in horizontal analysis, the earlier statement is used as the base for computing the amount and the percent of change. 
A)  A horizontal analysis is used to compare an item in a current statement with the same item in prior statements. 
B)  A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement of cash flows. 
C)  If Fees Earned in 2013 is $125,000 and Fees Earned in 2014 is $143,750, a horizontal analysis will indicate a 15% increase over this period. 
D)  When two statement are compared in horizontal analysis, the earlier statement is used as the base for computing the amount and the percent of change.

Question 11

Cash was paid by Ari's Alarm Service to creditors on account. Which of the following entries for Ari's Alarm Service records this transaction?

Accepted Answer

A)  Cash, debit; Ari Fleish, Capital, credit 
B)  Accounts Payable, debit; Cash, credit 
C)  Accounts Receivable, debit; Cash, credit 
D)  Accounts Payable, debit; Account Receivable, credit 
A)  Cash, debit; Ari Fleish, Capital, credit 
B)  Accounts Payable, debit; Cash, credit 
C)  Accounts Receivable, debit; Cash, credit 
D)  Accounts Payable, debit; Account Receivable, credit

Question 12

All of the following accounts are increased with a debit except:

Accepted Answer

A)  Unearned Revenues 
B)  Land 
C)  Accounts Receivable 
D)  Cash 
A)  Unearned Revenues 
B)  Land 
C)  Accounts Receivable 
D)  Cash

Question 13

A debit is abbreviated as Db and a credit is abbreviated as Cr.

Accepted Answer

A) True 
 B)False

Question 14

A trial balance determines the accuracy of the numbers.

Accepted Answer

A) True 
 B)False

Question 15

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.

Accepted Answer

A) True 
 B)False

Question 16

The post reference notation used in the journal is the page number.

Accepted Answer

A) True 
 B)False

Question 17

Which one of the statements below is not a purpose for the journal?

Accepted Answer

A)  to show increases and decreases in accounts 
B)  to show a chronological order by date 
C)  to show a complete transaction in one place 
D)  to help locate errors 
A)  to show increases and decreases in accounts 
B)  to show a chronological order by date 
C)  to show a complete transaction in one place 
D)  to help locate errors

Question 18

On October 10th, Nikle Company purchased supplies worth $1,800 on account.
(a) Write the journal entry in the space below.
(b) Nikle Company paid this bill on October 25th. Write the journal entry in the space below.

Accepted Answer

The answer of On October 10th, Nikle Company purchased supplies...

Question 19

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

Accepted Answer

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

Question 20

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

Accepted Answer

A)  Fees Earned 
B)  Salary Expense 
C)  Janet James, Capital 
D)  Accounts Payable 
A)  Fees Earned 
B)  Salary Expense 
C)  Janet James, Capital 
D)  Accounts Payable

Exam 2: Analyzing Transactions

Depending on the account title, the right side of the account is referred to as the credit side.

The process of rewriting the information from the journal into the ledger is called

Journal entries can have more than two accounts as long as the debits equal the credits.

Revenues are equal to the difference between cash receipts and cash payments.

A credit may signify a

Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following:

Increases and decreases in various types of accounts are listed below. In each case, indicate by "Dr." or "Cr." (a) whether the change in the account would be recorded as a debit or a credit and (b) whether the normal balance of the account is a debit or a credit.

Assets are increased with debits and decreased with credits.

All of the following statements regarding a horizontal analysis are true except:

Cash was paid by Ari's Alarm Service to creditors on account. Which of the following entries for Ari's Alarm Service records this transaction?

All of the following accounts are increased with a debit except:

A debit is abbreviated as Db and a credit is abbreviated as Cr.

A trial balance determines the accuracy of the numbers.

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.

The post reference notation used in the journal is the page number.

Which one of the statements below is not a purpose for the journal?

On October 10th, Nikle Company purchased supplies worth $1,800 on account. (a) Write the journal entry in the space below. (b) Nikle Company paid this bill on October 25th. Write the journal entry in the space below.

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

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

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

Filters