Question 1

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

Accepted Answer

A ledger is a record containing all of t...

Question 2

Purchasing supplies on credit increases assets while decreasing liabilities.

Accepted Answer

A) True 
 B)False

Question 3

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.F) C) and D)
G) A) and B)

Question 4

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.F) C) and D)
G) B) and C) B

Question 5

Explain how accounts are used in recording information about transactions.

Accepted Answer

Accounts are classified into five major ...

Question 6

A revenue account normally has a debit balance.

Accepted Answer

A) True 
 B)False

Question 7

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.F) B) and D)
G) A) and B)

Question 8

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...

Question 9

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.F) B) and C)
G) A) and D)

Question 10

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.F) B) and C)
G) A) and B)

Question 11

Explain the recording and posting processes.

Accepted Answer

Information from business transactions i...

Question 12

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.F) A) and B)
G) D) and E)

Question 13

Withdrawals are a type of transaction that affects equity.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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.F) B) and D)
G) A) and D)

Question 16

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

Accepted Answer

Chart of accounts

Question 17

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 18

Discuss the use of the trial balance.

Accepted Answer

The trial balance is a list of all of th...

Question 19

A compound journal entry usually affects three or more accounts.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing and Reporting Transactions

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

Correct AnswerverifiedA ledger is a record containing all of t...View AnswerShow Answer

Purchasing supplies on credit increases assets while decreasing liabilities.

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

Explain how accounts are used in recording information about transactions.

Correct AnswerverifiedAccounts are classified into five major ...View AnswerShow Answer

A revenue account normally has a debit balance.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A balance column ledger account is:

Correct AnswerverifiedShow Answer

The accounting cycle begins with:

Correct AnswerverifiedShow Answer

Explain the recording and posting processes.

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

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?

Correct AnswerverifiedShow Answer

Withdrawals are a type of transaction that affects equity.

Correct AnswerverifiedShow Answer

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

Correct Answerverified11eaa327_a877_63ef_9fad_cb812e9ac112_TB4591_00

A credit entry:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedChart of accounts

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.

Correct AnswerverifiedShow Answer

Discuss the use of the trial balance.

Correct AnswerverifiedThe trial balance is a list of all of th...View AnswerShow Answer

A compound journal entry usually affects three or more accounts.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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A ledger is a record containing all of t...
View Answer

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Accounts are classified into five major ...
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Decreases in expenses are _ to expense accounts,and decreases in revenues are _ to revenue accounts.

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Information from business transactions i...
View Answer

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11eaa327_a877_63ef_9fad_cb812e9ac112_TB4591_00

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Chart of accounts

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The trial balance is a list of all of th...
View Answer

Correct Answer
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