Question 1

A(n)_______________ is a list of all the accounts used by a company.

Accepted Answer

Chart of accounts

Question 2

Record the following transactions by making entries directly to the T-accounts provided.

Accepted Answer

The answer of Record the following transactions by making entries...

Question 3

An asset created by a payment for economic benefits that does not expire until some later time is:

Accepted Answer

A)   Recorded as a debit to an unearned revenue account.
B)   Recorded as a debit to a prepaid expense account.
C)   Recorded as a credit to an unearned revenue account.
D)   Recorded as a credit to a prepaid expense account.
E)   Not recorded in the accounting records. B

Question 4

Explain the recording and posting processes.

Accepted Answer

The answer of Explain the recording and posting processes....

Question 5

A compound journal entry usually affects three or more accounts.

Accepted Answer

A) True 
 B)False

Question 6

Discuss the use of the trial balance.

Accepted Answer

The answer of Discuss the use of the trial balance....

Question 7

Explain the difference between a ledger and a chart of accounts.

Accepted Answer

The answer of Explain the difference between a ledger and...

Question 8

An abnormal balance in an account refers to a balance on the side where decreases are recorded.

Accepted Answer

A) True 
 B)False

Question 9

The accounting cycle begins with:

Accepted Answer

A)   Preparing financial statements and other reports.
B)   Analysis of economic events and recording their effects.
C)   Posting to the ledger.
D)   Presentation of financial information to decision makers.
E)   None of these answers is correct.

Question 10

An unconditional written promise to pay a definite sum of money on demand or on a defined future date (or dates)is a(n):

Accepted Answer

A)   Unearned revenue.
B)   Prepaid expense.
C)   Account payable.
D)   Promissory note.
E)   Account receivable.

Question 11

Jelly's Grocery Store showed the following account balances at the end of 2015:  If all of the accounts have normal balances,what are the totals for the trial balance?

Accepted Answer

A)   $86,000.
B)   $119,600.
C)   $127,600.
D)   $186,600.
E)   $255,500.

Question 12

If a company purchases land,paying part with cash and issuing a note payable for the balance,the journal entry to record this transaction will include a debit to Cash.

Accepted Answer

A) True 
 B)False

Question 13

Withdrawals are a type of transaction that affects equity.

Accepted Answer

A) True 
 B)False

Question 14

Purchasing supplies on credit increases assets while decreasing liabilities.

Accepted Answer

A) True 
 B)False

Question 15

A balance column ledger account is:

Accepted Answer

A)   An account entered on the balance sheet.
B)   An account with debit and credit columns for recording entries and a third column for showing the balance of the account after each entry is posted.
C)   Another name for the withdrawals account.
D)   An account used to record the transfers of assets from a business to its owner.
E)   A simple form of account that is widely used in accounting education to illustrate the debits and credits required in recording a transaction.

Question 16

A credit entry:

Accepted Answer

A)   Increases asset and expense accounts,or decreases liability,equity,and revenue accounts.
B)   Is recorded on the left side of a T-account.
C)   Decreases asset and expense accounts,or increases liability,equity,and revenue accounts.
D)   Decreases asset,expense and revenue accounts.
E)   Increases the withdrawals account.

Question 17

A revenue account normally has a debit balance.

Accepted Answer

A) True 
 B)False

Question 18

Explain how accounts are used in recording information about transactions.

Accepted Answer

The answer of Explain how accounts are used in recording...

Question 19

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is:

Accepted Answer

A)   Recorded as a debit to an unearned revenue account.
B)   Recorded as a debit to a prepaid expense account.
C)   Recorded as a credit to an unearned revenue account.
D)   Recorded as a credit to a prepaid expense account.
E)   Not recorded in the accounting records.

Question 20

Decreases in expenses are _______________ to expense accounts,and decreases in revenues are _______________ to revenue accounts.

Accepted Answer

The answer of Decreases in expenses are _______________ to expense...

Exam 2: Analyzing and Reporting Transactions

A(n)_______________ is a list of all the accounts used by a company.

Record the following transactions by making entries directly to the T-accounts provided.

An asset created by a payment for economic benefits that does not expire until some later time is:

Explain the recording and posting processes.

A compound journal entry usually affects three or more accounts.

Discuss the use of the trial balance.

Explain the difference between a ledger and a chart of accounts.

An abnormal balance in an account refers to a balance on the side where decreases are recorded.

The accounting cycle begins with:

An unconditional written promise to pay a definite sum of money on demand or on a defined future date (or dates) is a(n) :

Jelly's Grocery Store showed the following account balances at the end of 2015: If all of the accounts have normal balances,what are the totals for the trial balance?

If a company purchases land,paying part with cash and issuing a note payable for the balance,the journal entry to record this transaction will include a debit to Cash.

Withdrawals are a type of transaction that affects equity.

Purchasing supplies on credit increases assets while decreasing liabilities.

A balance column ledger account is:

A credit entry:

A revenue account normally has a debit balance.

Explain how accounts are used in recording information about transactions.

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is:

Decreases in expenses are _ to expense accounts,and decreases in revenues are _ to revenue accounts.