Question 1

All business transactions require the application of two basic accounting concepts: recording a transaction at the right time and placing the right value on it.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following accounts has a normal debit balance?

Accepted Answer

A)   Wages Payable
B)   Fees Earned
C)   Rent Expense
D)   Common StockE) A) and B)
F) A) and C)

Question 3

Which of the following errors will not cause the debit and credit columns of the trial balance to be unequal?

Accepted Answer

A)   A debit entry was recorded in the wrong account.
B)   A debit was entered in an account as a credit.
C)   The account balance was carried to the wrong column of the trial balance.
D)   The balance of an account was incorrectly computed.E) All of the above
F) A) and C)

Question 4

The declaration and payment of a dividend will

Accepted Answer

A)   decrease net income.
B)   increase liabilities.
C)   not affect total assets.
D)   decrease stockholders' equity.E) A) and B)
F) A) and C)

Question 5

Match each definition with the correct term below.
-Posting

Accepted Answer

A)  A journal entry that involves more than two accounts.
B)  A list of account numbers with corresponding account titles.
C)  The difficulty of deciding when a business transaction should be recorded.
D)  The difference in dollars between the total debit footing and the total credit footing.
E)  The chronological accounting record sometimes known as the book of original entry.F) The basic storage units for accounting data.G) The item that is prepared at the end of the accounting period to test if total debits equals total credits.H) The process of transferring information from the journal to the ledger.I) The exchange price of an actual or potential business transaction.J) The practice of recording transactions at the exchange price at the point of recognition.K) B) and F)
L) A) and D)

Question 6

In the journal provided,prepare journal entries (in good form)for the following transactions.If no entry is required,write "no entry." Omit explanations.

Accepted Answer

The answer of In the journal provided,prepare journal entries (in...

Question 7

Which of the following terms does not mean the same as the others?

Accepted Answer

A)   Footing
B)   Folio
C)   LP
D)   Post.Ref.E) B) and D)
F) A) and B)

Question 8

For a T account,an account balance is the difference in total dollars between total debit footings and total credit footings.

Accepted Answer

A) True 
 B)False

Question 9

When payment is received for services not yet rendered,no entry is recorded until that service has been rendered.

Accepted Answer

A) True 
 B)False

Question 10

Column totals are called account balances.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is an illustration of the classification issue?

Accepted Answer

A)   At what amount should an old machine be shown on the balance sheet?
B)   At what point should the purchase of art supplies be recorded?
C)   Should tools be recorded as an asset or as an expense?
D)   At what point should a bill be paid for the purchase of an item?E) A) and D)
F) C) and D)

Question 12

Which of the following accounts probably would be listed after the others in a chart of accounts?

Accepted Answer

A)   Unearned Art Fees
B)   Prepaid Rent
C)   Retained Earnings
D)   Art Fees EarnedE) B) and C)
F) A) and D)

Question 13

Match each definition with the correct term below.
-Chart of accounts

Accepted Answer

A)  A journal entry that involves more than two accounts.
B)  A list of account numbers with corresponding account titles.
C)  The difficulty of deciding when a business transaction should be recorded.
D)  The difference in dollars between the total debit footing and the total credit footing.
E)  The chronological accounting record sometimes known as the book of original entry.F) The basic storage units for accounting data.G) The item that is prepared at the end of the accounting period to test if total debits equals total credits.H) The process of transferring information from the journal to the ledger.I) The exchange price of an actual or potential business transaction.J) The practice of recording transactions at the exchange price at the point of recognition.K) E) and F)
L) D) and H)

Question 14

Which of the following accounts has a normal credit balance?

Accepted Answer

A)   Accounts Receivable
B)   Common Stock
C)   Wages Expense
D)   DividendsE) B) and D)
F) All of the above

Question 15

Which of the following accounts is increased with a debit?

Accepted Answer

A)   Common Stock
B)   Rent Payable
C)   Legal Fees Earned
D)   DividendsE) None of the above
F) C) and D)

Question 16

Discuss why a company must pay careful attention to its cash flows and liquidity.

Accepted Answer

Some transactions for a company generate...

Question 17

Accounts Payable has a normal debit balance.

Accepted Answer

A) True 
 B)False

Question 18

From the following alphabetical list of account balances,all of which are normal,for Union Corporation on July 31,2013,prepare a trial balance in proper form (the amount of Dividends must be computed).

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> (Dividends = $2,200...

Question 19

Which of the following gives the correct sequence of accounting procedures?

Accepted Answer

A)   Financial statements,trial balance,ledger,journal
B)   Financial statements,journal,ledger,trial balance
C)   Journal,ledger,trial balance,financial statements
D)   Ledger,trial balance,journal,financial statementsE) All of the above
F) B) and D)

Question 20

When a service has been performed,but no cash has been received,which of the following statements is true?

Accepted Answer

A)   The entry would include a debit to Accounts Receivable.
B)   No journal entry would be made.
C)   The entry would include a debit to Accounts Payable.
D)   The entry would include a credit to Unearned Revenue.E) A) and B)
F) A) and C)

Exam 2: Analyzing Business Transactions

Which of the following accounts is increased with a debit?

Correct AnswerverifiedShow Answer

When payment is received for services not yet rendered,no entry is recorded until that service has been rendered.

Correct AnswerverifiedShow Answer

Which of the following terms does not mean the same as the others?

Correct AnswerverifiedShow Answer

Which of the following accounts probably would be listed after the others in a chart of accounts?

Correct AnswerverifiedShow Answer

The declaration and payment of a dividend will

Correct AnswerverifiedShow Answer

For a T account,an account balance is the difference in total dollars between total debit footings and total credit footings.

Correct AnswerverifiedShow Answer

Which of the following errors will not cause the debit and credit columns of the trial balance to be unequal?

Correct AnswerverifiedShow Answer

When a service has been performed,but no cash has been received,which of the following statements is true?

Correct AnswerverifiedShow Answer

In the journal provided,prepare journal entries (in good form)for the following transactions.If no entry is required,write "no entry." Omit explanations.

Correct AnswerverifiedShow Answer

Which of the following accounts has a normal debit balance?

Correct AnswerverifiedShow Answer

Which of the following is an illustration of the classification issue?

Correct AnswerverifiedShow Answer

All business transactions require the application of two basic accounting concepts: recording a transaction at the right time and placing the right value on it.

Correct AnswerverifiedShow Answer

Which of the following gives the correct sequence of accounting procedures?

Correct AnswerverifiedShow Answer

Accounts Payable has a normal debit balance.

Correct AnswerverifiedShow Answer

Match each definition with the correct term below. -Posting

Correct AnswerverifiedShow Answer

From the following alphabetical list of account balances,all of which are normal,for Union Corporation on July 31,2013,prepare a trial balance in proper form (the amount of Dividends must be computed).

Correct Answerverified (Dividends = $2,200...View AnswerShow Answer

Which of the following accounts has a normal credit balance?

Correct AnswerverifiedShow Answer

Column totals are called account balances.

Correct AnswerverifiedShow Answer

Match each definition with the correct term below. -Chart of accounts

Correct AnswerverifiedShow Answer

Discuss why a company must pay careful attention to its cash flows and liquidity.

Correct AnswerverifiedSome transactions for a company generate...View AnswerShow Answer

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(Dividends = $2,200...
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Some transactions for a company generate...
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