Question 1

Which of the following has a four column format?

Accepted Answer

A) Income statement 
B) Balance sheet 
C) General ledger sheet 
D) General journal

Question 2

Debit means:

Accepted Answer

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

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

Net income and dividends are part of:

Accepted Answer

A) liabilities. 
B) Stockholders' Equity. 
C) assets. 
D) net income.

Question 5

If debits equal credits on the trial balance,it means that all the steps in the accounting process are correct.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Binford Corporation purchased a $600 two-year insurance policy for cash.The journal entry would require a:

Accepted Answer

A) debit to Prepaid Insurance and a credit to Cash. 
B) debit to Insurance Expense and credit to Cash. 
C) debit to Insurance Expense and a credit to Accounts Payable. 
D) debit to Insurance Expense and a credit to Retained Earnings.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A business generally has just one expense account.

Accepted Answer

A) True 
 B)False

Question 10

An entry could have been posted twice and the trial balance might still balance.

Accepted Answer

A) True 
 B)False

Question 11

An example of accounts with normal credit balances would be:

Accepted Answer

A) revenues. 
B) assets. 
C) expenses. 
D) dividends.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The columns on a trial balance represent:

Accepted Answer

A) revenues and expenses. 
B) debits and credits. 
C) common stock and dividends. 
D) subtotals and totals.

Question 14

Credit means:

Accepted Answer

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

Question 15

Normal balance refers to the positive increase of an account and identifies the side of the account (Debit or Credit)to which this positive balance is recorded.

Accepted Answer

A) True 
 B)False

Question 16

Anthoney Inc's trial balance contains the following balances:
Cash $532 Accounts Payable $341 Revenue $671
Accounts Receivable $276 Expenses $204
What is the amount of total credits for this trial balance?

Accepted Answer

A) $545 
B) $1,012 
C) $1,479 
D) $1,683

Question 17

Where is the best place for a company's accountant to find the information necessary to review the activity in the cash account?

Accepted Answer

A) General journal 
B) General ledger 
C) Trial balance 
D) Bank statement

Question 18

All payables are listed as:

Accepted Answer

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

Question 19

A promissory note owed to another company would most likely appear in which of the following accounts?

Accepted Answer

A) Accounts Receivable 
B) Accounts Payable 
C) Notes Receivable 
D) Notes Payable

Question 20

Carters pays wages in the amount of $11,327.This transaction includes a:

Accepted Answer

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

Exam 2: Analyzing and Recording Business Transactions

Which of the following has a four column format?

Debit means:

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

Net income and dividends are part of:

If debits equal credits on the trial balance,it means that all the steps in the accounting process are correct.

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

Binford Corporation purchased a $600 two-year insurance policy for cash.The journal entry would require a:

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

A business generally has just one expense account.

An entry could have been posted twice and the trial balance might still balance.

An example of accounts with normal credit balances would be:

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

The columns on a trial balance represent:

Credit means:

Normal balance refers to the positive increase of an account and identifies the side of the account (Debit or Credit)to which this positive balance is recorded.

Anthoney Inc's trial balance contains the following balances: Cash $532 Accounts Payable $341 Revenue $671 Accounts Receivable $276 Expenses $204 What is the amount of total credits for this trial balance?

Where is the best place for a company's accountant to find the information necessary to review the activity in the cash account?

All payables are listed as:

A promissory note owed to another company would most likely appear in which of the following accounts?

Carters pays wages in the amount of $11,327.This transaction includes a: