Question 1

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.

Question 2

The account "Notes Payable" began with a zero balance and then had the following changes: increase of $700, increase of $300, decrease of $600, and an increase of $280. The final balance is a:

Accepted Answer

A) credit balance of $600. 
B) debit balance of $1,280. 
C) credit balance of $680. 
D) debit balance of $680.

Question 3

Which document would be best to prove that the account balances are correct?

Accepted Answer

A) General journal 
B) General ledger 
C) Trial balance 
D) Income Statement

Question 4

Motor Work, Inc.'s trial balance contains the following balances: Cash $367 Accounts Payable $268 Revenue $635
Accounts Receivable $430 Expenses $106
What is the amount of total debits for this trial balance?

Accepted Answer

A) $903 
B) $797 
C) $741 
D) $1,806

Question 5

Journalizing does NOT include:

Accepted Answer

A) debiting account(s)that are affected. 
B) crediting account(s)that are affected. 
C) posting the debits and credits to the accounts. 
D) entering the date of the transaction.

Question 6

The Liabilities section would include accrued liabilities and prepaid expense accounts.

Accepted Answer

A) True 
 B)False

Question 7

Obligations that are owed to others due to past transactions are categorized as:

Accepted Answer

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

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Renoir Associates paid one of its creditors $584 on their balance due. The journal entry would require a:

Accepted Answer

A) debit to Cash and a credit to Accounts Payable. 
B) debit to Cash and a credit to Accounts Receivable. 
C) credit to Cash and a debit to Accounts Receivable. 
D) debit to Accounts Payable and credit to Cash.

Question 10

Account titles such as Salaries Expense and Rent Expense would be numbered starting with a 3.

Accepted Answer

A) True 
 B)False

Question 11

Office equipment was purchased for $1,300 on account from Supplies-for-Less. The journal entry would include a:

Accepted Answer

A) debit to Office Equipment and a credit to Cash. 
B) credit to Cash and a debit to Office Equipment Expense. 
C) debit to Office Equipment and a credit to Accounts Payable. 
D) debit to Accounts Payable and a credit to Cash.

Question 12

Christine invested $32,000 in her business, Cuts by Christine. The journal entry would include a:

Accepted Answer

A) debit to Cash for $32,000 and a credit to Sales for $32,000. 
B) debit to Cash for $32,000 and a credit to Common Stock for $32,000. 
C) credit to Cash for $32,000 and a debit to Common Stock for $32,000. 
D) debit to Cash for $32,000 and a credit to Dividends for $32,000.

Question 13

Accounts that increase on the credit side are Assets, dividends and Expenses (ADE).

Accepted Answer

A) True 
 B)False

Question 14

The total amount of debits must equal the total amount of credits. This is a rule of:

Accepted Answer

A) T-accounts. 
B) the chart of accounts. 
C) double-entry accounting. 
D) normal balances.

Question 15

A T-account has a $426 debit balance. This account is most likely:

Accepted Answer

A) Income Taxes Payable. 
B) Common Stock. 
C) Cash. 
D) Magazine Sales.

Question 16

The fact that each transaction has a dual effect on the accounting equation provides the basis for what is called:

Accepted Answer

A) single-entry accounting. 
B) double-entry accounting. 
C) compound-entry accounting. 
D) multiple-entry accounting.

Question 17

The general journal was developed to organize transactions by account.

Accepted Answer

A) True 
 B)False

Question 18

Accounts that start with the numbers 6-9 would probably be:

Accepted Answer

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

Question 19

Danio Corp performs services on account. This transaction includes a debit to Accounts Receivable.

Accepted Answer

A) True 
 B)False

Question 20

A $375 purchase of supplies on account was recorded by debiting Supplies for $375 and crediting Cash for $375. The entry needed to correct this error is:

Accepted Answer

A) Debit Accounts Payable for $375 and credit Cash for $375. 
B) Debit Accounts Receivable for $375 and credit Cash for $375. 
C) Debit Cash for $375 and credit Accounts Payable for $375. 
D) Debit Cash for $375 and credit Accounts Receivable for $375.

Exam 2: Analyzing and Recording Business Transactions

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

The account "Notes Payable" began with a zero balance and then had the following changes: increase of $700, increase of $300, decrease of $600, and an increase of $280. The final balance is a:

Which document would be best to prove that the account balances are correct?

Motor Work, Inc.'s trial balance contains the following balances: Cash $367 Accounts Payable $268 Revenue $635 Accounts Receivable $430 Expenses $106 What is the amount of total debits for this trial balance?

Journalizing does NOT include:

The Liabilities section would include accrued liabilities and prepaid expense accounts.

Obligations that are owed to others due to past transactions are categorized as:

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

Renoir Associates paid one of its creditors $584 on their balance due. The journal entry would require a:

Account titles such as Salaries Expense and Rent Expense would be numbered starting with a 3.

Office equipment was purchased for $1,300 on account from Supplies-for-Less. The journal entry would include a:

Christine invested $32,000 in her business, Cuts by Christine. The journal entry would include a:

Accounts that increase on the credit side are Assets, dividends and Expenses (ADE).

The total amount of debits must equal the total amount of credits. This is a rule of:

A T-account has a $426 debit balance. This account is most likely:

The fact that each transaction has a dual effect on the accounting equation provides the basis for what is called:

The general journal was developed to organize transactions by account.

Accounts that start with the numbers 6-9 would probably be:

Danio Corp performs services on account. This transaction includes a debit to Accounts Receivable.

A $375 purchase of supplies on account was recorded by debiting Supplies for $375 and crediting Cash for $375. The entry needed to correct this error is: