Question 1

Prepare a journal entry on October 12 for the fees earned on account, $14,600.

Accepted Answer

The answer of Prepare a journal entry on October 12...

Question 2

Set up T accounts for Cash, Accounts Receivable, Supplies, Accounts Payable, Capital Stock, Dividends, Professional Fees, and Operating Expenses.

Accepted Answer

The answer of Set up T accounts for Cash, Accounts...

Question 3

The unearned revenues account is an example of a liability.

Accepted Answer

A) True 
 B)False

Question 4

The debit side of an account

Accepted Answer

A)   depends on whether the account is an asset, liability or stockholders' equity item
B)   can be either side of the account depending on how the accountant set up the system
C)   is the right side of the account
D)   is the left side of the account

Question 5

The posting process will include the transfer of the following information from the journal to the account.

Accepted Answer

A)   date, amount (debit or credit) 
B)   date, amount (debit or credit) , journal page number
C)   amount (debit or credit) , account number
D)   date, amount (debit or credit)  account number

Question 6

All of the following occur with a double-entry accounting system except

Accepted Answer

A)   The accounting equation remains in balance.
B)   The sum of all debits is always equal to the sum of all credits in each journal entry.
C)   Each business transaction will have only two entries.
D)   Every transaction affects at least two accounts.

Question 7

Debiting the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 8

Journalize the following selected transactions for April 2011 in a two-column journal. Journal entry explanations may be omitted.

Accepted Answer

The answer of Journalize the following selected transactions for April...

Question 9

Transactions are initially entered into a record called a journal.

Accepted Answer

A) True 
 B)False

Question 10

A debit is abbreviated as Db and a credit is abbreviated as Cr.

Accepted Answer

A) True 
 B)False

Question 11

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following accounts is a stockholders' equity account?

Accepted Answer

A)   Cash
B)   Accounts Payable
C)   Prepaid Insurance
D)   Dividends

Question 13

On June 1, the cash account balance was $75,880. During June, cash receipts totaled $305,000 and the June 30 balance was $96,750. Determine the cash payments made during June.

Accepted Answer

96,750 = 75,880 + 30...

Question 14

The verification that the total dollar amount of the debits equals the total dollar amount of the credits in the ledger is called a

Accepted Answer

A)   ledger
B)   trial balance
C)   account
D)   balance sheet

Question 15

The process of transferring the debits and credits from the journal entries to the ledger accounts is called

Accepted Answer

A)   sliding
B)   transposing
C)   journalizing
D)   posting

Question 16

Of the following, which istrue about assets?

Accepted Answer

A)   Assets include physical items and intangibles that have value.
B)   Assets include only physical items of value.
C)   Assets are owned solely by the stockholders of the company.
D)   Assets are the result of selling products or services to customers.

Question 17

The normal balance of a capital stock account is a debit.

Accepted Answer

A) True 
 B)False

Question 18

The gross increases in retained earnings attributable to business activities are called

Accepted Answer

A)   assets
B)   liabilities
C)   revenues
D)   net income

Question 19

The double-entry accounting system records each transaction twice.

Accepted Answer

A) True 
 B)False

Question 20

Accounts

Accepted Answer

A)   do not reflect money amounts
B)   are not used by entities that manufacture products
C)   are records of increases and decreases in individual financial statement items
D)   are only used by large entities with many transactions

Exam 2: Analyzing Transactions

On June 1, the cash account balance was $75,880. During June, cash receipts totaled $305,000 and the June 30 balance was $96,750. Determine the cash payments made during June.

Correct Answerverified96,750 = 75,880 + 30...View AnswerShow Answer

Journalize the following selected transactions for April 2011 in a two-column journal. Journal entry explanations may be omitted.

Correct AnswerverifiedShow Answer

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

Correct AnswerverifiedShow Answer

The double-entry accounting system records each transaction twice.

Correct AnswerverifiedShow Answer

Prepare a journal entry on October 12 for the fees earned on account, $14,600.

Correct AnswerverifiedShow Answer

All of the following occur with a double-entry accounting system except

Correct AnswerverifiedShow Answer

The unearned revenues account is an example of a liability.

Correct AnswerverifiedShow Answer

Accounts

Correct AnswerverifiedShow Answer

Debiting the cash account will increase the account.

Correct AnswerverifiedShow Answer

The posting process will include the transfer of the following information from the journal to the account.

Correct AnswerverifiedShow Answer

The debit side of an account

Correct AnswerverifiedShow Answer

A debit is abbreviated as Db and a credit is abbreviated as Cr.

Correct AnswerverifiedShow Answer

Of the following, which istrue about assets?

Correct AnswerverifiedShow Answer

The verification that the total dollar amount of the debits equals the total dollar amount of the credits in the ledger is called a

Correct AnswerverifiedShow Answer

The gross increases in retained earnings attributable to business activities are called

Correct AnswerverifiedShow Answer

Set up T accounts for Cash, Accounts Receivable, Supplies, Accounts Payable, Capital Stock, Dividends, Professional Fees, and Operating Expenses.

Correct AnswerverifiedShow Answer

Which of the following accounts is a stockholders' equity account?

Correct AnswerverifiedShow Answer

Transactions are initially entered into a record called a journal.

Correct AnswerverifiedShow Answer

The process of transferring the debits and credits from the journal entries to the ledger accounts is called

Correct AnswerverifiedShow Answer

The normal balance of a capital stock account is a debit.

Correct AnswerverifiedShow Answer

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