Question 1

Accounts that decrease on the credit side are liabilities, common shares, revenues, and retained earnings.

Accepted Answer

A) True 
 B)False

Question 2

The general journal is used to record only the revenue transactions of a business.

Accepted Answer

A) True 
 B)False

Question 3

Name the three major parts of a T-account.

Accepted Answer

The answer of Name the three major parts of a...

Question 4

Which would be best at proving the accounts balance?

Accepted Answer

The answer of Which would be best at proving the...

Question 5

The required accounting period for a trial balance is one year.

Accepted Answer

A) True 
 B)False

Question 6

There are eight steps in the accounting cycle. List and describe the eight steps.

Accepted Answer

The answer of There are eight steps in the accounting...

Question 7

The __________ keeps a running balance of an individual account.

Accepted Answer

The answer of The __________ keeps a running balance of...

Question 8

Monies owed to a company on a written promise to pay a fixed amount of money by a certain date would be called a __________.

Accepted Answer

The answer of Monies owed to a company on a...

Question 9

Double-entry accounting requires that every business transaction impacts at least two different accounts.

Accepted Answer

A) True 
 B)False

Question 10

Emily Ma started Energy Saving Service in June 2013. The account balances on June 30, 2013 are provided below. All accounts have normal balances. One hundred (100) common shares were issued in June 2013.
  
Requirements
Prepare Emily's statement of changes in equity for June 30, 2013.

Accepted Answer

The answer of Emily Ma started Energy Saving Service in...

Question 11

ABC Corporation collected $600 from one of its customers for payment on their account. The journal entry would include a __________.

Accepted Answer

The answer of ABC Corporation collected $600 from one of...

Question 12

Using the accounts below, determine the accounts to be debited and credited for each of the transactions below.
Accounts
Cash
Dividends
Supplies
Revenue
Machinery
Salaries Payable
Accounts Payable
Salaries Expense
Retained Earnings
Accounts Receivable
Wages Expense
Transactions
1. Paid wages for cash.
2. Purchased equipment for cash.
3. Earned revenue on account.
4. Purchased supplies on account.
5. Paid for supplies purchased in 4.
6. Received payment from customer in 3.
7. Paid employee salaries.
8. Purchased machinery on credit.
9. Paid dividends to shareholders.

Accepted Answer

The answer of Using the accounts below, determine the accounts...

Question 13

ABC Corporation purchases a building for $35,000 cash. The journal entry would include a __________.

Accepted Answer

The answer of ABC Corporation purchases a building for $35,000...

Question 14

Every entry in the general journal should include all of the following EXCEPT:

Accepted Answer

A)  the title of each account affected. 
B)  the amounts of debits and credits. 
C)  a brief description of the transaction. 
D)  the balance of the accounts affected. 
E)  debits and credits.

Question 15

Review the transactions below and determine whether you would use a debit or a credit to record the following changes. Indicate your decision by entering "Debit" or "Credit" in the right-hand column.

Accepted Answer

The answer of Review the transactions below and determine whether...

Question 16

An example of accounts with normal debit balances would be:

Accepted Answer

A)  liabilities. 
B)  expenses. 
C)  revenues. 
D)  shareholders' equity. 
E)  retained earnings

Question 17

Fire Alarm Services completed the following transactions in the month of March.
  
Requirements
Journalize each transaction and identify each transaction by date. Explanations not required.

Accepted Answer

The answer of Fire Alarm Services completed the following transactions...

Question 18

Debit means:

Accepted Answer

A)  decrease. 
B)  increase. 
C)  the right side of an account. 
D)  the left side of an account. 
E)  the total of the T-account.

Question 19

Which is part of shareholders' equity?

Accepted Answer

A)  Cash 
B)  Notes Payable 
C)  Dividends 
D)  Assets 
E)  Liabilities

Question 20

Dividends, revenues, and expenses all:

Accepted Answer

A)  start with the same chart of accounts number. 
B)  start with different chart of accounts numbers. 
C)  appear in the chart of accounts under assets. 
D)  appear in the chart of accounts under liabilities. 
E)  do not appear in the chart of accounts.

Exam 2: Analyzing and Recording Business Transactions

Accounts that decrease on the credit side are liabilities, common shares, revenues, and retained earnings.

The general journal is used to record only the revenue transactions of a business.

Name the three major parts of a T-account.

Which would be best at proving the accounts balance?

The required accounting period for a trial balance is one year.

There are eight steps in the accounting cycle. List and describe the eight steps.

The __________ keeps a running balance of an individual account.

Monies owed to a company on a written promise to pay a fixed amount of money by a certain date would be called a __________.

Double-entry accounting requires that every business transaction impacts at least two different accounts.

Emily Ma started Energy Saving Service in June 2013. The account balances on June 30, 2013 are provided below. All accounts have normal balances. One hundred (100) common shares were issued in June 2013. Requirements Prepare Emily's statement of changes in equity for June 30, 2013.

ABC Corporation collected $600 from one of its customers for payment on their account. The journal entry would include a __________.

ABC Corporation purchases a building for $35,000 cash. The journal entry would include a __________.

Every entry in the general journal should include all of the following EXCEPT:

Review the transactions below and determine whether you would use a debit or a credit to record the following changes. Indicate your decision by entering "Debit" or "Credit" in the right-hand column.

An example of accounts with normal debit balances would be:

Fire Alarm Services completed the following transactions in the month of March. Requirements Journalize each transaction and identify each transaction by date. Explanations not required.

Debit means:

Which is part of shareholders' equity?

Dividends, revenues, and expenses all: