Question 1

The posting reference column of the general journal provides a cross-reference between the:

Accepted Answer

A) ledger and accounts. 
B) journal and ledger. 
C) ledger and financial statements. 
D) journal and financial statements.

Question 2

The general journal is used to record the events (transactions)of a business.

Accepted Answer

A) True 
 B)False

Question 3

Revenues ________ Retained Earnings, and increase on the ________ side.

Accepted Answer

A) increase, debit 
B) increase, credit 
C) decrease, debit 
D) decrease, credit

Question 4

Expenses ________ Retained Earnings, and increase on the ________ side.

Accepted Answer

A) increase, debit 
B) increase, credit 
C) decrease, debit 
D) decrease, credit

Question 5

Given the following T-Account information, what is the balance in accounts payable? Accounts Payable 212

Accepted Answer

A) $335 debit balance 
B) $625 debit balance 
C) $335 credit balance 
D) $960 credit balance

Question 6

Yukon Inc. pays wages in the amount of $15,000. This transaction includes a:

Accepted Answer

A) debit to Cash. 
B) credit to Wages Expense. 
C) credit to Cash. 
D) credit to Revenue.

Question 7

An example of accounts with normal debit balances would be:

Accepted Answer

A) liabilities. 
B) expenses. 
C) revenues. 
D) Stockholders' Equity.

Question 8

The act of recording a transaction is called "journalizing."

Accepted Answer

A) True 
 B)False

Question 9

One of the customers of Metro Roofing, Inc. paid $400 on her bill. The journal entry that Metro Roofing, Inc. would record is:

Accepted Answer

A) debit Accounts Receivable and credit Sales. 
B) debit Cash and credit Sales. 
C) debit Accounts Receivable and credit Cash. 
D) debit Cash and credit Accounts Receivable.

Question 10

Sydney's Sails pays dividends at the end of the year. This transaction includes a debit to Cash.

Accepted Answer

A) True 
 B)False

Question 11

Expenses paid in advance such as rent and insurance are classified as prepaid expenses. Into what category are they placed?

Accepted Answer

A) Liabilities 
B) Revenues 
C) Expenses 
D) Assets

Question 12

Anthoney Inc's trial balance contains the following balances: Cash $533 Accounts Payable $347 Revenue $671
Accounts Receivable $280 Expenses $205
What is the amount of total credits for this trial balance?

Accepted Answer

A) $552 
B) $1,018 
C) $1,484 
D) $1,689

Question 13

A company has an $11,263 credit balance in the payable accounts. Given this information, which of the following is a TRUE statement?

Accepted Answer

A) It is NOT normal for payable accounts to have a credit balance. 
B) Not enough information provided, since normal account balances are different for each company. 
C) It is ALWAYS normal for payable accounts to have a credit balance. 
D) Payable accounts shouldn't be this high, so this is not a normal balance.

Question 14

A company has a $4568 debit balance in its cash account. Given this information, which of the following is a TRUE statement?

Accepted Answer

A) It is not normal for a business to have this much cash, therefore this is NOT a normal account balance. 
B) It is NOT ever normal for the cash account to have a debit balance. 
C) Normal account balances differ from company to company; therefore it is impossible to evaluate the given statement without more information. 
D) It is ALWAYS normal for the cash account to have a debit balance.

Question 15

A trial balance will determine if:

Accepted Answer

A) an entry was recorded twice. 
B) an entry was posted twice. 
C) debits equal credits. 
D) the right accounts were debited or credited.

Question 16

Office Furniture, Wages Payable and Dividends have normal balances of:

Accepted Answer

A) credit, credit, and credit, respectively. 
B) debit, credit, and debit, respectively. 
C) debit, debit, and credit, respectively. 
D) credit, debit, and debit, respectively.

Question 17

A company accidentally records the rent payment twice in October. The effect on the trial balance will be:

Accepted Answer

A) debits will be more than credits. 
B) credits will be more than debits. 
C) debits will still be equal to credits. 
D) not enough information provided.

Question 18

A type of asset in which a customer owes the company money would be a:

Accepted Answer

A) dividend. 
B) receivable. 
C) payable. 
D) sale.

Question 19

Credit means:

Accepted Answer

A) decrease. 
B) increase. 
C) the right side of an account. 
D) the left side of an account.

Question 20

Caesar's Company's trial balance contains the following balances: Cash $423 Accounts Receivable $380 Revenue $725
Accounts Payable $287 Expenses $209
What is the amount of total debits for this trial balance?

Accepted Answer

A) $1,528 
B) $496 
C) $1,012 
D) $1,299

Exam 2: Analyzing and Recording Business Transactions

The posting reference column of the general journal provides a cross-reference between the:

The general journal is used to record the events (transactions)of a business.

Revenues Retained Earnings, and increase on the side.

Expenses Retained Earnings, and increase on the side.

Given the following T-Account information, what is the balance in accounts payable? Accounts Payable 212

Yukon Inc. pays wages in the amount of $15,000. This transaction includes a:

An example of accounts with normal debit balances would be:

The act of recording a transaction is called "journalizing."

One of the customers of Metro Roofing, Inc. paid $400 on her bill. The journal entry that Metro Roofing, Inc. would record is:

Sydney's Sails pays dividends at the end of the year. This transaction includes a debit to Cash.

Expenses paid in advance such as rent and insurance are classified as prepaid expenses. Into what category are they placed?

Anthoney Inc's trial balance contains the following balances: Cash $533 Accounts Payable $347 Revenue $671 Accounts Receivable $280 Expenses $205 What is the amount of total credits for this trial balance?

A company has an $11,263 credit balance in the payable accounts. Given this information, which of the following is a TRUE statement?

A company has a $4568 debit balance in its cash account. Given this information, which of the following is a TRUE statement?

A trial balance will determine if:

Office Furniture, Wages Payable and Dividends have normal balances of:

A company accidentally records the rent payment twice in October. The effect on the trial balance will be:

A type of asset in which a customer owes the company money would be a:

Credit means:

Caesar's Company's trial balance contains the following balances: Cash $423 Accounts Receivable $380 Revenue $725 Accounts Payable $287 Expenses $209 What is the amount of total debits for this trial balance?