Question 1

A general journal is:

Accepted Answer

A)  A ledger in which amounts are posted from a balance column account.
B)  Not required if T-accounts are used.
C)  A complete record of any transaction and the place from which transaction amounts are posted to the ledger accounts.
D)  Not necessary in electronic accounting systems.
E)  A book of final entry because financial statements are prepared from it.

Question 2

Explain the recording and posting processes.

Accepted Answer

Information from business transactions a...

Question 3

Double-entry accounting is an accounting system:

Accepted Answer

A)  That records each transaction twice.
B)  That records the effects of transactions and other events in at least two accounts with equal debits and credits.
C)  In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits.
D)  That may only be used if T-accounts are used.
E)  That insures that errors never occur.

Question 4

Montgomery Marketing Co.had assets of $475,000; liabilities of $275,500; and equity of $199,500.Calculate its debt ratio.

Accepted Answer

Debt Ratio = Total L...

Question 5

If insurance coverage for the next three years is paid for in advance,the amount of the payment is debited to an asset account called Prepaid Insurance.

Accepted Answer

A) True 
 B)False

Question 6

Source documents provide evidence of business transactions and are the basis for accounting entries.

Accepted Answer

A) True 
 B)False

Question 7

At the beginning of January of the current year,Thomas Law Center's ledger reflected a normal balance of $52,000 for accounts receivable.During January,the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500.Additionally,during January one customer paid Thomas $5,000 for services to be provided in the future.At the end of January,the balance in the accounts receivable account should be:

Accepted Answer

A)  $54,700.
B)  $49,700.
C)  $2,300.
D)  $54,300.
E)  $49,300.

Question 8

A compound journal entry affects no more than two accounts.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing and Recording Transactions

Correct Answer
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Explain the recording and posting processes.

Correct Answer
verified
Information from business transactions a...
View Answer

Double-entry accounting is an accounting system:

Correct Answer
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Source documents provide evidence of business transactions and are the basis for accounting entries.

Correct Answer
verified

A general journal is:

Correct Answer
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If insurance coverage for the next three years is paid for in advance,the amount of the payment is debited to an asset account called Prepaid Insurance.

Correct Answer
verified

A compound journal entry affects no more than two accounts.

Correct Answer
verified

Montgomery Marketing Co.had assets of $475,000; liabilities of $275,500; and equity of $199,500.Calculate its debt ratio.

Correct Answer
verified
Debt Ratio = Total L...
View Answer

Exam 2: Analyzing and Recording Transactions

Correct AnswerverifiedShow Answer

Explain the recording and posting processes.

Correct AnswerverifiedInformation from business transactions a...View AnswerShow Answer

Double-entry accounting is an accounting system:

Correct AnswerverifiedShow Answer

Source documents provide evidence of business transactions and are the basis for accounting entries.

Correct AnswerverifiedShow Answer

A general journal is:

Correct AnswerverifiedShow Answer

If insurance coverage for the next three years is paid for in advance,the amount of the payment is debited to an asset account called Prepaid Insurance.

Correct AnswerverifiedShow Answer

A compound journal entry affects no more than two accounts.

Correct AnswerverifiedShow Answer

Montgomery Marketing Co.had assets of $475,000; liabilities of $275,500; and equity of $199,500.Calculate its debt ratio.

Correct AnswerverifiedDebt Ratio = Total L...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
Information from business transactions a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Debt Ratio = Total L...
View Answer