Question 1

March 10 Accounts Payable 800 Cash 800 Paid creditors on account. \begin{array} { | l | l | c | l | l | l | } \hline 	ext { March } & 10 & 	ext { Accounts Payable } & & 800 & \\hline & & 	ext { Cash } & & & 800 \\hline & & 	ext { Paid creditors on account. } & & & \\hline\end{array} March ​10​ Accounts Payable  Cash  Paid creditors on account. ​​800​800​​  What effects does this journal entry have on the accounts?

Accepted Answer

A)   decrease Accounts Payable, increase Cash
B)   increase Cash, decrease Accounts Payable
C)   increase Accounts Payable, increase Cash
D)   decrease Accounts Payable, decrease Cash E) A) and D)
F) A) and B)

Question 2

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account.
-Accounts Receivable

Accepted Answer

A)  Credit side
B)  Debit sideC) A) and B)
D) undefined

Question 3

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Debit or credit posting omitted.

Accepted Answer

A)  Trial balance preparation errors
B)  Account balance errors
C)  Posting errorsD) A) and B)
E) A) and C)

Question 4

In the chart of accounts, each account number has two digits. The first digit indicates the major account group to which the account belongs. Which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?

Accepted Answer

A)   1-Assets, 2-Liabilities, 3-Stockholders' Equity, 4-Expenses, 5-Revenues
B)   1-Assets, 2-Liabilities, 3-Stockholders' Equity, 4-Revenues, 5-Expenses
C)   1-Assets, 2-Stockholders' Equity, 3-Revenues, 4-Expenses, 5-Dividends
D)   1-Stockholders' Equity, 2-Dividends, 3-Revenues, 4-ExpensesE) A) and B)
F) B) and C)

Question 5

Which of the following accounts would be increased with a credit?

Accepted Answer

A)   Land; Accounts Payable; Dividends
B)   Accounts Payable; Unearned Revenue; Common Stock
C)   Dividends; Accounts Receivable; Unearned Revenue
D)   Cash; Accounts Receivable; Common StockE) A) and B)
F) None of the above

Question 6

The double-entry accounting system records each transaction twice.

Accepted Answer

A) True 
 B)False

Question 7

Richardson Company has a condensed income statement as shown.   Year 2  Year 1  Sales $150,000$165,500 Total operating expenses 133,000147,500 Net income 17,00018,000\begin{array} { | l | l | l | } \hline & 	ext { Year 2 } & 	ext { Year 1 } \\hline 	ext { Sales } & \$ 150,000 & \$ 165,500 \\hline 	ext { Total operating expenses } & 133,000 & 147,500 \\hline 	ext { Net income } & 17,000 & 18,000 \\hline\end{array} Sales  Total operating expenses  Net income ​ Year 2 $150,000133,00017,000​ Year 1 $165,500147,50018,000​​  Using horizontal analysis, calculate the amount and percent change for sales. Round to one decimal place.

Accepted Answer

A)   $17,000) , 11.3%) 
B)   $15,500) , 10.3%) 
C)   $18,000) , 10.9%) 
D)   $15,500) , 9.4%)  E) All of the above
F) None of the above

Question 8

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Accepted Answer

A)   Prepaid Rent, debit; Rent Revenue, credit.
B)   Cash, debit; Unearned Rent, credit.
C)   Cash, debit; Prepaid Rent, credit.
D)   Cash, debit; Rent Expense, credit.E) B) and C)
F) A) and C)

Question 9

When a business receives a bill from the utility company, no entry should be made until the invoice is paid.

Accepted Answer

A) True 
 B)False

Question 10

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Amount incorrectly entered on trial balance.

Accepted Answer

A)  Trial balance preparation errors
B)  Account balance errors
C)  Posting errorsD) All of the above
E) B) and C)

Question 11

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is not true about liabilities?

Accepted Answer

A)   Liabilities are debts owed to outsiders.
B)   Account titles of liabilities often include the term "payable."
C)   Cash received before a service is performed creates a liability.
D)   Liabilities do not include wages owed to employees of the company.E) B) and C)
F) None of the above

Question 13

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Accepted Answer

A) True 
 B)False

Question 14

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Column incorrectly added.

Accepted Answer

A)  Trial balance preparation errors
B)  Account balance errors
C)  Posting errorsD) All of the above
E) None of the above

Question 15

Expenses can result from

Accepted Answer

A)   increasing stockholders' equity
B)   consuming services
C)   using up liabilities
D)   purchasing assetsE) C) and D)
F) None of the above

Question 16

A credit to the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following entries records the payment of insurance for the current month?

Accepted Answer

A)   Cash, debit; Insurance Expense, credit
B)   Insurance Expense, debit; Cash, credit
C)   Insurance Expense, debit; Accounts Receivable, credit
D)   Prepaid Insurance, debit; Cash, creditE) All of the above
F) A) and B)

Question 18

The process of recording a transaction in the journal is called

Accepted Answer

A)   ledgerizing
B)   journalizing
C)   posting
D)   summarizingE) B) and C)
F) C) and D)

Question 19

Accounts are classified in the ledger

Accepted Answer

A)   chronologically
B)   alphabetically
C)   in accordance with their appearance in the financial statements
D)   with the accounts used most often listed firstE) B) and C)
F) A) and C)

Question 20

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Balance entered on wrong side of account.

Accepted Answer

A)  Trial balance preparation errors
B)  Account balance errors
C)  Posting errorsD) B) and C)
E) A) and B)

Exam 2: Analyzing Transactions

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Column incorrectly added.

Correct Answer
verified

In the chart of accounts, each account number has two digits. The first digit indicates the major account group to which the account belongs. Which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?

Correct Answer
verified

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Correct Answer
verified

Which of the following entries records the payment of insurance for the current month?

Correct Answer
verified

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Balance entered on wrong side of account.

Correct Answer
verified

Correct Answer
verified

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Correct Answer
verified

When a business receives a bill from the utility company, no entry should be made until the invoice is paid.

Correct Answer
verified

A credit to the cash account will increase the account.

Correct Answer
verified

Expenses can result from

Correct Answer
verified

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account. -Accounts Receivable

Correct Answer
verified

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Debit or credit posting omitted.

Correct Answer
verified

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Amount incorrectly entered on trial balance.

Correct Answer
verified

The double-entry accounting system records each transaction twice.

Correct Answer
verified

Which of the following statements is not true about liabilities?

Correct Answer
verified

$\begin{array} { | l | l | c | l | l | l | } \hline \text { March } & 10 & \text { Accounts Payable } & & 800 & \\\hline & & \text { Cash } & & & 800 \\\hline & & \text { Paid creditors on account. } & & & \\\hline\end{array}$ What effects does this journal entry have on the accounts?

Correct Answer
verified

Accounts are classified in the ledger

Correct Answer
verified

The process of recording a transaction in the journal is called

Correct Answer
verified

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Correct Answer
verified

Which of the following accounts would be increased with a credit?

Correct Answer
verified

Exam 2: Analyzing Transactions

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Column incorrectly added.

Correct AnswerverifiedShow Answer

In the chart of accounts, each account number has two digits. The first digit indicates the major account group to which the account belongs. Which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?

Correct AnswerverifiedShow Answer

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Correct AnswerverifiedShow Answer

Which of the following entries records the payment of insurance for the current month?

Correct AnswerverifiedShow Answer

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Balance entered on wrong side of account.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Correct AnswerverifiedShow Answer

When a business receives a bill from the utility company, no entry should be made until the invoice is paid.

Correct AnswerverifiedShow Answer

A credit to the cash account will increase the account.

Correct AnswerverifiedShow Answer

Expenses can result from

Correct AnswerverifiedShow Answer

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account. -Accounts Receivable

Correct AnswerverifiedShow Answer

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Debit or credit posting omitted.

Correct AnswerverifiedShow Answer

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Amount incorrectly entered on trial balance.

Correct AnswerverifiedShow Answer

The double-entry accounting system records each transaction twice.

Correct AnswerverifiedShow Answer

Which of the following statements is not true about liabilities?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Accounts are classified in the ledger

Correct AnswerverifiedShow Answer

The process of recording a transaction in the journal is called

Correct AnswerverifiedShow Answer

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Correct AnswerverifiedShow Answer

Which of the following accounts would be increased with a credit?

Correct AnswerverifiedShow Answer

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