Question 1

An account is an individual accounting record of increases and decreases in specific

Accepted Answer

A)  liabilities.
B)  assets.
C)  expenses.
D)  assets, liabilities, and stockholders' equity items. D

Question 2

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

Accepted Answer

A) True 
 B)False  True

Question 3

In recording business transactions, evidence that an accounting transaction has taken place is obtained from

Accepted Answer

A)  business documents.
B)  the Internal Revenue Service.
C)  the public relations department.
D)  the SEC. A

Question 4

Transactions are recorded in alphabetic order in a journal.

Accepted Answer

A) True 
 B)False

Question 5

The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger.

Accepted Answer

A) True 
 B)False

Question 6

When the volume of transactions is large, recording them in tabular form is more efficient than using journals and ledgers.

Accepted Answer

A) True 
 B)False

Question 7

At December 1, 2021, Cursive Company's accounts receivable balance was $1,800.During December, Cursive had revenues on account of $7,200 and collected accounts receivable of $6,000.At December 31, 2021, the accounts receivable balance is

Accepted Answer

A)  $600 debit.
B)  $3,000 debit.
C)  $600 credit.
D)  $3,000 credit.

Question 8

For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance.Increase (+), Decrease (-).

Accepted Answer

The answer of For each of the following accounts indicate...

Question 9

At September 1, 2021, Promise Ring Co.reported stockholders' equity of $156,000. During the month, Promise Ring generated revenues of $38,000, incurred expenses of
$21,000, purchased equipment for $5,000 and paid dividends of $2,000.What is the amount of stockholders' equity at September 30, 2021?

Accepted Answer

A)  $166,000
B)  $171,000
C)  $173,000
D)  $176,000

Question 10

TNT Company has the following transactions during April of the current year.Indicate
(a) the effect on the accounting equation and (b) the debit-credit analysis.
Apr.1 Opens a law office, investing $25,000 in cash.
4 Pays rent in advance for 6 months, $9,000 cash.
16 Receives $8,000 from clients for services provided.
27 Pays secretary $2,800 salary.

Accepted Answer

The answer of TNT Company has the following transactions during...

Question 11

On June 1, 2021, Portugal Inc.reported a cash balance of $12,000.During June, Portugal made deposits of $5,000 and made disbursements totalling $14,000.What is the cash balance at the end of June?

Accepted Answer

A)  $3,000 debit balance
B)  $17,000 debit balance
C)  $3,000 credit balance
D)  $2,000 credit balance

Question 12

The double-entry system requires that each transaction must be recorded

Accepted Answer

A)  in at least two different accounts.
B)  in two sets of books.
C)  in a journal and in a ledger.
D)  first as a revenue and then as an expense.

Question 13

On August 13, 2021, Swell Maps Enterprises purchased equipment for $1,300 and supplies of $200 on account.Which of the following journal entries is recorded correctly and in the standard format?

Accepted Answer

On August 13, 2021, Swell Maps Enterprises purchased equipment for $1,300 and supplies of $200 on account.Which of the following journal entries is recorded correctly and in the standard format?

Question 14

For the accounts listed below, indicate if the normal balance of the account is a debit or credit.

Accepted Answer

The answer of For the accounts listed below, indicate if...

Question 15

A trial balance will not balance if

Accepted Answer

A)  a journal entry is posted twice.
B)  an incorrect amount is used in journalizing.
C)  incorrect account titles are used in journalizing.
D)  a journal entry is only partially posted.

Question 16

A list of accounts and their balances at a given time is called a(n)

Accepted Answer

A)  journal.
B)  posting.
C)  trial balance.
D)  income statement.

Question 17

The transactions of the Liberty Belle Store are recorded in the general journal below.You are to post the journal entries to T-accounts.Liberty Belle is in their first period of operations.

Accepted Answer

The answer of The transactions of the Liberty Belle Store...

Question 18

If a company has overdrawn its bank balance, then

Accepted Answer

A)  its cash account will show a debit balance.
B)  its cash account will show a credit balance.
C)  the cash account debits will exceed the cash account credits.
D)  it cannot be detected by observing the balance of the cash account.

Question 19

The trial balance will not balance when incorrect account titles are used in journalizing or posting.

Accepted Answer

A) True 
 B)False

Question 20

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

Accepted Answer

A)  no errors have been made.
B)  no errors can be discovered.
C)  that all accounts reflect correct balances.
D)  the mathematical equality of the accounting equation.

Exam 2: The Recording Process

An account is an individual accounting record of increases and decreases in specific

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

In recording business transactions, evidence that an accounting transaction has taken place is obtained from

Transactions are recorded in alphabetic order in a journal.

The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger.

When the volume of transactions is large, recording them in tabular form is more efficient than using journals and ledgers.

At December 1, 2021, Cursive Company's accounts receivable balance was $1,800.During December, Cursive had revenues on account of $7,200 and collected accounts receivable of $6,000.At December 31, 2021, the accounts receivable balance is

For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance.Increase (+), Decrease (-).

At September 1, 2021, Promise Ring Co.reported stockholders' equity of $156,000. During the month, Promise Ring generated revenues of $38,000, incurred expenses of $21,000, purchased equipment for $5,000 and paid dividends of $2,000.What is the amount of stockholders' equity at September 30, 2021?

On June 1, 2021, Portugal Inc.reported a cash balance of $12,000.During June, Portugal made deposits of $5,000 and made disbursements totalling $14,000.What is the cash balance at the end of June?

The double-entry system requires that each transaction must be recorded

For the accounts listed below, indicate if the normal balance of the account is a debit or credit.

A trial balance will not balance if

A list of accounts and their balances at a given time is called a(n)

The transactions of the Liberty Belle Store are recorded in the general journal below.You are to post the journal entries to T-accounts.Liberty Belle is in their first period of operations.

If a company has overdrawn its bank balance, then

The trial balance will not balance when incorrect account titles are used in journalizing or posting.

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates