Question 1

A trial balance is prepared to

Accepted Answer

A)  prove that there were no errors made in recording transactions into the journal 
B)  prove that no errors were made in posting to the ledger 
C)  prove that each account balance is correct 
D)  summarize the account balances to help prepare financial statements

Question 2

The normal balance of a capital account is a debit.

Accepted Answer

A) True 
 B)False

Question 3

The cash account will always be debited.

Accepted Answer

A) True 
 B)False

Question 4

State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also, indicate the normal balance of each account.

Accepted Answer

The answer of State for each account whether it is...

Question 5

The normal balance of revenue accounts is a credit.

Accepted Answer

A) True 
 B)False

Question 6

The recording of cash receipts to the cash account will be done by debiting the account.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not considered to be a liability?

Accepted Answer

A)  Wages Payable 
B)  Accounts Receivable 
C)  Unearned Revenues 
D)  Accounts Payable

Question 8

Which of the following groups of accounts have a normal debit balance?

Accepted Answer

A)  revenues, liabilities, and capital 
B)  capital and assets 
C)  liabilities and expenses 
D)  assets and expenses

Question 9

The chart of account for the Corning Company includes some of the following accounts:  On the journal page 3, the following transaction was found:
 What is the post reference that will be found on the cash account?

Accepted Answer

A)  11 
B)  15 
C)  3 
D)  None

Question 10

Several transactions are listed below, with the accounting equation stated to the right side of each. Use the following identification codes to indicate the effects of each transaction on the accounting equation. Write your answers in the space provided under the accounting equation. You need an identification code for each element of the accounting equation. An example is given before the first transaction.

Accepted Answer

The answer of Several transactions are listed below, with the...

Question 11

Which of the following entries records the payment of an account payable?

Accepted Answer

A)  debit Cash; credit Accounts Payable 
B)  debit Accounts Receivable; credit Cash 
C)  debit Cash; credit Supplies Expense 
D)  debit Accounts Payable; credit Cash

Question 12

When a transposition error is made on the trial balance, the difference between the debit and credit totals on the trial balance will be

Accepted Answer

A)  zero 
B)  twice the amount of the transposition 
C)  one-half the amount of the transposition 
D)  divisible by 9

Question 13

Accounts are records of increases and decreases in individual financial statement items.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true about a T-Account?

Accepted Answer

A)  Left hand side of the T-Account is called a debit. 
B)  Left hand side of the T-Accounts is called a credit 
C)  Right hand side of the T-Account is called a debit 
D)  None are true.

Question 15

The following errors took place in journalizing and posting transactions:
  Journalize the entries to correct the errors. Omit the explanations.

Accepted Answer

The answer of The following errors took place in journalizing...

Question 16

In which of the following types of accounts are increases recorded by credits?

Accepted Answer

A)  revenues and liabilities 
B)  drawing and assets 
C)  liabilities and drawing 
D)  expenses and liabilities

Question 17

Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.

Accepted Answer

The answer of Listed below are accounts to use for...

Question 18

Which of the following entries records the withdrawal of cash by Sue Martin, owner of a proprietorship, for personal use?

Accepted Answer

A)  debit Sue Martin, Capital; credit Cash 
B)  debit Sue Martin, Drawing; credit Cash 
C)  debit Salaries Expense; credit Cash 
D)  debit Salaries Expense; credit Salaries Payable

Question 19

Which of the following types of accounts have a normal credit balance?

Accepted Answer

A)  assets and liabilities 
B)  liabilities and expenses 
C)  revenues and liabilities 
D)  capital and drawing

Question 20

Expenses use up assets or consume services in the process of generating revenues.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

A trial balance is prepared to

The normal balance of a capital account is a debit.

The cash account will always be debited.

State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also, indicate the normal balance of each account.

The normal balance of revenue accounts is a credit.

The recording of cash receipts to the cash account will be done by debiting the account.

Which of the following is not considered to be a liability?

Which of the following groups of accounts have a normal debit balance?

The chart of account for the Corning Company includes some of the following accounts: On the journal page 3, the following transaction was found: What is the post reference that will be found on the cash account?

Which of the following entries records the payment of an account payable?

When a transposition error is made on the trial balance, the difference between the debit and credit totals on the trial balance will be

Accounts are records of increases and decreases in individual financial statement items.

Which of the following is true about a T-Account?

The following errors took place in journalizing and posting transactions: Journalize the entries to correct the errors. Omit the explanations.

In which of the following types of accounts are increases recorded by credits?

Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.

Which of the following entries records the withdrawal of cash by Sue Martin, owner of a proprietorship, for personal use?

Which of the following types of accounts have a normal credit balance?

Expenses use up assets or consume services in the process of generating revenues.