Question 1

A trial balance does NOT include

Accepted Answer

A)  account names. 
B)  account balances. 
C)  journal entries details. 
D)  date of trial balance.

Question 2

Jim's Mountain Tours opened for business December 1, 2014. The following T- accounts include eight transactions that occurred in December 2014:
    Instructions 
a. For each transaction, journalize the transaction, including an explanation for the entry.
b. Determine the ending account balance for each account.
c. Prepare a trial balance as at December 31, 2014.

Accepted Answer

The answer of Jim's Mountain Tours opened for business December...

Question 3

Mike's Bike Repairs opened for business on November 1, 2014. The following transactions occurred in November:  Instructions
Journalize the above transactions. Explanations are not required.

Accepted Answer

The answer of Mike's Bike Repairs opened for business on...

Question 4

The side of the account where increases are recorded

Accepted Answer

A)  is always the left side. 
B)  is always the right side. 
C)  always creates a negative balance. 
D)  is the same side as the normal balance for that account.

Question 5

A debit to an expense account

Accepted Answer

A)  decreases the owner's equity. 
B)  increases owner's equity. 
C)  directly affects the drawings account. 
D)  has no effect on the balance sheet.

Question 6

A journal entry

Accepted Answer

A)  must have the same number of debit entries as credit entries. 
B)  must have a debit to an asset and a credit to a liability. 
C)  only affect balance sheet accounts. 
D)  must have the total of the debit entries equal to the credit entries.

Question 7

The following types of error(s) still allow the trial balance debit and credit columns to be equal:

Accepted Answer

A)  missed entries. 
B)  transposed numbers. 
C)  addition errors. 
D)  missed accounts.

Question 8

Tantramar Geothermal has hired a new accountant. When she reviewed the financial statements for the previous year, she found a significant error which would mean that the statements were wrong. She should NOT

Accepted Answer

A)  create a new account called "suspense" and use it to correct the error. 
B)  notify the Management of the company immediately of the problem. 
C)  research the journal entries to try and find the error. 
D)  review all of the transactions for the past year for reasonableness.

Question 9

The use of different accounts is necessary to allow users to analyze the information.

Accepted Answer

A) True 
 B)False

Question 10

Each time a transaction is recorded; one side of the entry will be to cash.

Accepted Answer

A) True 
 B)False

Question 11

The following is a record that contains all of the company's accounts.

Accepted Answer

A)  journal 
B)  tabular summary 
C)  trial balance 
D)  ledger

Question 12

All of the following activities are performed on a daily basis EXCEPT for

Accepted Answer

A)  collecting source documents. 
B)  determining the impact of a transaction on the company's financial position. 
C)  preparing the journal entries. 
D)  preparing the trial balance.

Question 13

The recording process occurs

Accepted Answer

A)  once a week. 
B)  once a month. 
C)  repeatedly during the accounting period. 
D)  at the end of the accounting period.

Question 14

Carlisle Company is a newly organized business. The list of accounts to be opened in the general ledger is as follows:  Organize the accounts into the order in which they should appear in the ledger of Carlisle Company and assign account numbers. Use the following system to assign account numbers.
100-199 Assets
200-299 Liabilities
300-399 Owner's Equity
400-499 Revenues
500-599 Expenses

Accepted Answer

The answer of Carlisle Company is a newly organized business....

Question 15

If the trial balance balances, it proves that all of the entries have been made correctly.

Accepted Answer

A) True 
 B)False

Question 16

Transactions are recorded for all of the following reasons EXCEPT

Accepted Answer

A)  when the transaction causes a change in the financial position of the company. 
B)  to make all of the accounts balance. 
C)  when evidence of the transaction is available. 
D)  when there is a specific effect on the accounting equation.

Question 17

The chart of accounts used by Presto Printing is listed below. You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate columns.

Accepted Answer

The answer of The chart of accounts used by Presto...

Question 18

The drawings account

Accepted Answer

A)  appears on the income statement along with the expenses of the business. 
B)  must show transactions every accounting period. 
C)  is increased with debits and decreased with credits. 
D)  is not a proper subdivision of owner's equity.

Question 19

When an owner makes a withdrawal

Accepted Answer

A)  it doesn't have to be cash, it could be another asset. 
B)  the drawings account will be increased with a credit. 
C)  the capital account will be directly increased with a debit. 
D)  the drawings account will be decreased with a debit.

Question 20

Match between columns
                        Premises: A decrease in Office Supplies.
A decrease in Accounts Receivable.
An increase in Owner's Drawings.
An increase in Prepaid Insurance.
An increase in Salary Expense.
An increase in Rent Expense.
An increase in Owner's Capital.
A decrease in Store Equipment.
An increase in Service Revenue.
A decrease in Accounts Payable.

Accepted Answer

The Answer of Depit and Credit is...

Exam 2: The Recording Process

A trial balance does NOT include

Mike's Bike Repairs opened for business on November 1, 2014. The following transactions occurred in November: Instructions Journalize the above transactions. Explanations are not required.

The side of the account where increases are recorded

A debit to an expense account

A journal entry

The following types of error(s) still allow the trial balance debit and credit columns to be equal:

Tantramar Geothermal has hired a new accountant. When she reviewed the financial statements for the previous year, she found a significant error which would mean that the statements were wrong. She should NOT

The use of different accounts is necessary to allow users to analyze the information.

Each time a transaction is recorded; one side of the entry will be to cash.

The following is a record that contains all of the company's accounts.

All of the following activities are performed on a daily basis EXCEPT for

The recording process occurs

If the trial balance balances, it proves that all of the entries have been made correctly.

Transactions are recorded for all of the following reasons EXCEPT

The chart of accounts used by Presto Printing is listed below. You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate columns.

The drawings account

When an owner makes a withdrawal

Indicate whether you would use a debit or a credit to record the following changes: