Question 1

A credit is used to record:

Accepted Answer

A)  A decrease in an expense account. 
B)  A decrease in an asset account. 
C)  An increase in an unearned revenue account. 
D)  An increase in a revenue account. 
E)  All of these answers are correct. 
A)  A decrease in an expense account. 
B)  A decrease in an asset account. 
C)  An increase in an unearned revenue account. 
D)  An increase in a revenue account. 
E)  All of these answers are correct.

Question 2

Of the following accounts,the one that normally has a debit balance is:

Accepted Answer

A)  Accounts Payable. 
B)  Accounts Receivable. 
C)  Ted Neal,Capital. 
D)  Sales Revenue. 
E)  Unearned Revenue. 
A)  Accounts Payable. 
B)  Accounts Receivable. 
C)  Ted Neal,Capital. 
D)  Sales Revenue. 
E)  Unearned Revenue.

Question 3

The following transactions occurred during July for Hurley Services:   How much revenue was earned in July?

Accepted Answer

A)  $1,200. 
B)  $2,300. 
C)  $2,800. 
D)  $5,500. 
E)  $7,000. 
A)  $1,200. 
B)  $2,300. 
C)  $2,800. 
D)  $5,500. 
E)  $7,000.

Question 4

Cash withdrawn by the owner of an unincorporated business in the form of a monthly salary should be treated as an expense of the business.

Accepted Answer

A) True 
 B)False

Question 5

A simple account form widely used in accounting education to illustrate how debits and credits work is called a:

Accepted Answer

A)  Withdrawals account. 
B)  Capital account. 
C)  Ledger. 
D)  T-account. 
E)  Balance column account. 
A)  Withdrawals account. 
B)  Capital account. 
C)  Ledger. 
D)  T-account. 
E)  Balance column account.

Question 6

Credits to accounts are always increases.

Accepted Answer

A) True 
 B)False

Question 7

The process of copying journal information to the ledger is called:

Accepted Answer

A)  Double-entering. 
B)  Posting. 
C)  An internal business transaction. 
D)  Journalizing. 
E)  An external business transaction. 
A)  Double-entering. 
B)  Posting. 
C)  An internal business transaction. 
D)  Journalizing. 
E)  An external business transaction.

Question 8

The most flexible type of journal that can be used to record any kind of transaction is called a:

Accepted Answer

A)  Ledger. 
B)  Trial balance. 
C)  Chart of accounts. 
D)  General Journal. 
E)  Balance column account. 
A)  Ledger. 
B)  Trial balance. 
C)  Chart of accounts. 
D)  General Journal. 
E)  Balance column account.

Question 9

The right side of a T-account is a(n):

Accepted Answer

A)  Debit. 
B)  Increase. 
C)  Credit. 
D)  Decrease. 
E)  Account balance. 
A)  Debit. 
B)  Increase. 
C)  Credit. 
D)  Decrease. 
E)  Account balance.

Question 10

During the month of November,Cornish Company had cash receipts of $3,500 and paid out $1,000 for expenses.The November 30th cash balance was $4,300.What was the cash balance on November 1?

Accepted Answer

A)  $1,800. 
B)  $2,800. 
C)  $4,300. 
D)  $5,800. 
E)  $7,300. 
A)  $1,800. 
B)  $2,800. 
C)  $4,300. 
D)  $5,800. 
E)  $7,300.

Question 11

The Shreddy Company receives a $3,200 bill from a supplier for delivery services rendered.Set up two or more T-accounts below and show how this transaction would be recorded directly in those accounts.

Accepted Answer

The answer of The Shreddy Company receives a $3,200 bill...

Question 12

A trial balance that is in balance is proof that no errors were made in journalizing the transactions,posting to the ledger,and preparing the trial balance.

Accepted Answer

A) True 
 B)False

Question 13

A business paid $2,500 to satisfy a previously recorded account payable.Set up two or more T-accounts below and show how this transaction would be recorded directly in those accounts.

Accepted Answer

The answer of A business paid $2,500 to satisfy a...

Question 14

Since all figures are eventually posted to the ledger,the posting reference column in a journal is not necessary.

Accepted Answer

A) True 
 B)False

Question 15

A debit entry:

Accepted Answer

A)  Increases asset and expense accounts. 
B)  Decreases liability and equity accounts. 
C)  Increases the owner's withdrawals account. 
D)  Decreases revenue accounts. 
E)  All of these answers are correct. 
A)  Increases asset and expense accounts. 
B)  Decreases liability and equity accounts. 
C)  Increases the owner's withdrawals account. 
D)  Decreases revenue accounts. 
E)  All of these answers are correct.

Question 16

On June 20,2015,Lucie Majeau invested the following assets in a new sole proprietorship: cash,$12,000; office equipment,$6,000; land,$100,000; building,$115,000.Majeau owes the bank a $25,000 note payable that is secured by the land and building.Prepare the general journal entry to record Majeau's investments in the new business.

Accepted Answer

The answer of On June 20,2015,Lucie Majeau invested the following...

Question 17

Asset accounts normally have credit balances and expense accounts normally have debit balances.

Accepted Answer

A) True 
 B)False

Question 18

Of the following accounts,the one that normally has a credit balance is:

Accepted Answer

A)  Cash. 
B)  Office Equipment. 
C)  Sales Salaries Payable. 
D)  Ted Neal,Withdrawals. 
E)  Sales Salaries Expense. 
A)  Cash. 
B)  Office Equipment. 
C)  Sales Salaries Payable. 
D)  Ted Neal,Withdrawals. 
E)  Sales Salaries Expense.

Question 19

A book of original entry is:

Accepted Answer

A)  A book in which amounts are posted from a journal. 
B)  Another name for the cash account. 
C)  Another name for the general journal. 
D)  Also called a ledger. 
E)  Sometimes called a book of final entry. 
A)  A book in which amounts are posted from a journal. 
B)  Another name for the cash account. 
C)  Another name for the general journal. 
D)  Also called a ledger. 
E)  Sometimes called a book of final entry.

Question 20

Increases in assets are _______________ to asset accounts,and increases in liabilities are _______________ to liability accounts.

Accepted Answer

The answer of Increases in assets are _______________ to asset...

A credit is used to record:

Of the following accounts,the one that normally has a debit balance is:

The following transactions occurred during July for Hurley Services: How much revenue was earned in July?

Cash withdrawn by the owner of an unincorporated business in the form of a monthly salary should be treated as an expense of the business.

A simple account form widely used in accounting education to illustrate how debits and credits work is called a:

Credits to accounts are always increases.

The process of copying journal information to the ledger is called:

The most flexible type of journal that can be used to record any kind of transaction is called a:

The right side of a T-account is a(n):

During the month of November,Cornish Company had cash receipts of $3,500 and paid out $1,000 for expenses.The November 30^th cash balance was $4,300.What was the cash balance on November 1?

The Shreddy Company receives a $3,200 bill from a supplier for delivery services rendered.Set up two or more T-accounts below and show how this transaction would be recorded directly in those accounts.

A trial balance that is in balance is proof that no errors were made in journalizing the transactions,posting to the ledger,and preparing the trial balance.

A business paid $2,500 to satisfy a previously recorded account payable.Set up two or more T-accounts below and show how this transaction would be recorded directly in those accounts.

Since all figures are eventually posted to the ledger,the posting reference column in a journal is not necessary.

A debit entry:

Asset accounts normally have credit balances and expense accounts normally have debit balances.

Of the following accounts,the one that normally has a credit balance is:

A book of original entry is:

Increases in assets are _ to asset accounts,and increases in liabilities are _ to liability accounts.

Accounting in Business

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters

Exam 2: Analyzing and Reporting Transactions

A credit is used to record:

Of the following accounts,the one that normally has a debit balance is:

The following transactions occurred during July for Hurley Services: How much revenue was earned in July?

Cash withdrawn by the owner of an unincorporated business in the form of a monthly salary should be treated as an expense of the business.

A simple account form widely used in accounting education to illustrate how debits and credits work is called a:

Credits to accounts are always increases.

The process of copying journal information to the ledger is called:

The most flexible type of journal that can be used to record any kind of transaction is called a:

The right side of a T-account is a(n):

During the month of November,Cornish Company had cash receipts of $3,500 and paid out $1,000 for expenses.The November 30th cash balance was $4,300.What was the cash balance on November 1?

The Shreddy Company receives a $3,200 bill from a supplier for delivery services rendered.Set up two or more T-accounts below and show how this transaction would be recorded directly in those accounts.

A trial balance that is in balance is proof that no errors were made in journalizing the transactions,posting to the ledger,and preparing the trial balance.

A business paid $2,500 to satisfy a previously recorded account payable.Set up two or more T-accounts below and show how this transaction would be recorded directly in those accounts.

Since all figures are eventually posted to the ledger,the posting reference column in a journal is not necessary.

A debit entry:

Asset accounts normally have credit balances and expense accounts normally have debit balances.

Of the following accounts,the one that normally has a credit balance is:

A book of original entry is:

Increases in assets are _______________ to asset accounts,and increases in liabilities are _______________ to liability accounts.

Accounting in Business

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters

During the month of November,Cornish Company had cash receipts of $3,500 and paid out $1,000 for expenses.The November 30^th cash balance was $4,300.What was the cash balance on November 1?

Increases in assets are _ to asset accounts,and increases in liabilities are _ to liability accounts.