Question 1

Debit means increase and credit means decrease for all accounts.

Accepted Answer

A) True 
 B)False

Question 2

Unearned revenue is classified as a(an)________ on a business's balance sheet.

Accepted Answer

The answer of Unearned revenue is classified as a(an)________ on...

Question 3

Indicate whether a debit or credit entry would be required to record the following changes in each account.
a.To decrease Cash
b.To increase Common Stock
c.To decrease Accounts Payable.
d.To increase Salaries Expense.
e.To decrease Supplies.
f.To increase Revenue.
g.To decrease Accounts Receivable.
h.To increase Dividends.

Accepted Answer

a.Credit,b.Credit,c....

Question 4

In a double-entry accounting system,the total dollar amount debited must always equal the total dollar amount credited.

Accepted Answer

A) True 
 B)False

Question 5

Match the following terms with the appropriate definition.
-Ledger

Accepted Answer

A)  Verifiable evidence that transactions have occurred used to record accounting information.
B)  Decrease in an asset, dividend and expense account, and increase in a liability, common stock and revenue account; recorded on the right side of a T-account.
C)  An increase in an asset and expense account, and decrease in a liability, common stock,and revenue account; recorded on the left side of a T-account.
D)  A company's chronological record of each transaction in one place that shows debits and credits for each transaction.
E)  An accounting system where each transaction affects and is recorded in at least twoaccounts; the sum of the debits for each entry must equal the sum of its credits.F) The process of transferring journal entry information to the ledger accounts.G) A record of the increases and decreases in a specific asset, liability, equity, revenue, orexpense item.H) A record containing all the accounts of a company and their balances.I) A list of accounts and their balances at a point in time.J) A representation of a ledger account used to understand the effects of transactions.K) C) and I)
L) F) and I)

Question 6

Posting is the transfer of journal entry information to the ledger.

Accepted Answer

A) True 
 B)False

Question 7

An account used to record stockholders' investments in a business is called a(n) :

Accepted Answer

A)   Dividends account.
B)   Common stock account.
C)   Revenue account.
D)   Expense account.
E)   Liability account.F) A) and D)
G) B) and D)

Question 8

Given the following errors,identify the one by itself that will cause the trial balance to be out of balance.

Accepted Answer

A)   A $200 cash salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense.
B)   A $100 cash receipt from a customer in payment of her account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable.
C)   A $75 cash receipt from a customer in payment of her account posted as a $75 debit to Cash and a $75 credit to Cash.
D)   A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash.
E)   An $800 prepayment from a customer for services to be rendered in the future was posted as an $800 debit to Unearned Revenue and an $800 credit to Cash.F) C) and D)
G) All of the above

Question 9

For each of the following accounts,identify whether a debit or credit yields the indicated change
 $$\begin{array} {| l | l| } 
\hline \text {a. To increase Fees Earned } & \quad\quad\quad\quad\quad\
\hline \text { b. To decrease Cash } & \
\hline \text { c. To decrease Unearned Revenue } & \
\hline \text { d. To increase Accounts Receivable } & \
\hline \text { e. To increase Common Stock } & \
\hline \text { f. To decrease Notes Payable } & \
\hline \text {g. To increase Prepaid Rent } & \
\hline \text { h.To increase Salaries Expense } & \
\hline \text { i.To increase Accounts Payable } & \
\hline \text {j. To decrease Prepaid Insurance } & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | c | }
\hline \t...

Question 10

If cash is received from customers in payment for products or services that have not yet been delivered to the customers,the business would record the cash receipt as:

Accepted Answer

A)   A debit to an unearned revenue account.
B)   A debit to a prepaid expense account.
C)   A credit to an unearned revenue account.
D)   A credit to a prepaid expense account.
E)   No entry is required at the time of collection.F) B) and D)
G) A) and B)

Question 11

When a company provides services for which cash will not be received until some future date,the company should record the amount billed as accounts receivable.

Accepted Answer

A) True 
 B)False

Question 12

Golddigger Services,Inc.provides services to clients.On May 1,a client prepaid Golddigger Services $60,000 for 6-months services in advance.Golddigger Services' general journal entry to record this transaction will include a:

Accepted Answer

A)   Debit to Unearned Management Fees for $60,000.
B)   Credit to Management Fees Earned for $60,000.
C)   Credit to Cash for $60,000.
D)   Credit to Unearned Management Fees for $60,000.
E)   Debit to Management Fees Earned for $60,000.F) None of the above
G) D) and E)

Question 13

The dividends account normally has a debit balance.

Accepted Answer

A) True 
 B)False

Question 14

Match the following terms with the appropriate definition.
-Debit

Accepted Answer

A)  Verifiable evidence that transactions have occurred used to record accounting information.
B)  Decrease in an asset, dividend and expense account, and increase in a liability, common stock and revenue account; recorded on the right side of a T-account.
C)  An increase in an asset and expense account, and decrease in a liability, common stock,and revenue account; recorded on the left side of a T-account.
D)  A company's chronological record of each transaction in one place that shows debits and credits for each transaction.
E)  An accounting system where each transaction affects and is recorded in at least twoaccounts; the sum of the debits for each entry must equal the sum of its credits.F) The process of transferring journal entry information to the ledger accounts.G) A record of the increases and decreases in a specific asset, liability, equity, revenue, orexpense item.H) A record containing all the accounts of a company and their balances.I) A list of accounts and their balances at a point in time.J) A representation of a ledger account used to understand the effects of transactions.K) G) and I)
L) A) and I)

Question 15

On a trial balance,if the Debit and Credit column totals are equal,then:

Accepted Answer

A)   All transactions have been recorded correctly.
B)   All entries from the journal have been posted to the ledger correctly.
C)   All ledger account balances are correct.
D)   Equal debits and credits have been recorded for transactions.
E)   The balance sheet would be correct.F) A) and B)
G) A) and C)

Question 16

A general journal gives a complete record of each transaction in one place,and shows the debits and credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 17

George Butler owned a tugboat and was tired of his current job.He decided to open a business that provides day tugboat tours to tourists along the Mississippi River near his hometown.Prepare journal entries to record the following transactions.

Accepted Answer

None...

Question 18

Given each of the following errors,indicate on the table below the amount by which the trial balance will be out of balance and which trial balance column (debit or credit)will have the larger total as a result of the error.
a.$100 debit to Cash was debited to the Cash account twice.
b.$1,900 credit to Sales was posted as a $190 credit.
c.$5,000 debit to Office Equipment was debited to Office Supplies.
d.$625 debit to Prepaid Insurance was posted as a $62.50 debit.
e.$520 credit to Accounts Payable was not posted.
 $$\begin{array} { lcc } 
& \text { Amount Out } & \text { Column Having } \
\text { Error}&\text { of Balance } & \text { Larger Total } \
\text { a. } &\underline{\quad\quad} & \underline{\quad\quad}\
\text { b. } & \underline{\quad\quad} & \underline{\quad\quad}\
\text { c. } & \underline{\quad\quad} & \underline{\quad\quad}\
\text { d. } &\underline{\quad\quad} &\underline{\quad\quad} \
\text { e. } & \underline{\quad\quad}&\underline{\quad\quad}
\end{array}$$

Accepted Answer

\[\begin{array} { lcc }
& \text { Amoun...

Question 19

What is a trial balance? What is its purpose?

Accepted Answer

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

Question 20

Match the following terms with the appropriate definition.
-Journal

Accepted Answer

A)  A record containing all accounts of a company and their balances.
B)  A written promise to pay a definite sum of money on a specified future date.
C)  The difference between total debits and total credits for an account including the beginning balance.
D)  An increase in an asset, dividend, and expense account, and a decrease in a liability, common stock, and revenue account; recorded on the left side of a T-account.
E)  A list of accounts and their balances at a point in time; the total debit balances should equal the total credit balances.F) An account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.G) The ratio of total liabilities to total assets; used to reflect the risk associated with the company's debts.H) A list of all accounts used by a company and the identification number assigned to each account.I) A decrease in an asset, dividend, and expense account, and an increase in a liability, common stock, and revenue account; recorded on the right side of a T-account.J) A chronological record of each transaction in one place that shows debits and credits for each transaction.K) B) and E)
L) A) and E)

Exam 2: Analyzing for Business Transactions

Posting is the transfer of journal entry information to the ledger.

Correct Answer
verified

In a double-entry accounting system,the total dollar amount debited must always equal the total dollar amount credited.

Correct Answer
verified

When a company provides services for which cash will not be received until some future date,the company should record the amount billed as accounts receivable.

Correct Answer
verified

Debit means increase and credit means decrease for all accounts.

Correct Answer
verified

George Butler owned a tugboat and was tired of his current job.He decided to open a business that provides day tugboat tours to tourists along the Mississippi River near his hometown.Prepare journal entries to record the following transactions.

Correct Answer
verified
None...
View Answer

The dividends account normally has a debit balance.

Correct Answer
verified

Match the following terms with the appropriate definition. -Ledger

Correct Answer
verified

Unearned revenue is classified as a(an)________ on a business's balance sheet.

Correct Answer
verified

Correct Answer
verified
a.Credit,b.Credit,c....
View Answer

Correct Answer
verified
\[\begin{array} { | l | c | }
\hline \t...
View Answer

Match the following terms with the appropriate definition. -Journal

Correct Answer
verified

Correct Answer
verified
\[\begin{array} { lcc }
& \text { Amoun...
View Answer

Match the following terms with the appropriate definition. -Debit

Correct Answer
verified

Given the following errors,identify the one by itself that will cause the trial balance to be out of balance.

Correct Answer
verified

On a trial balance,if the Debit and Credit column totals are equal,then:

Correct Answer
verified

A general journal gives a complete record of each transaction in one place,and shows the debits and credits for each transaction.

Correct Answer
verified

Golddigger Services,Inc.provides services to clients.On May 1,a client prepaid Golddigger Services $60,000 for 6-months services in advance.Golddigger Services' general journal entry to record this transaction will include a:

Correct Answer
verified

An account used to record stockholders' investments in a business is called a(n) :

Correct Answer
verified

What is a trial balance? What is its purpose?

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

If cash is received from customers in payment for products or services that have not yet been delivered to the customers,the business would record the cash receipt as:

Correct Answer
verified

Exam 2: Analyzing for Business Transactions

Posting is the transfer of journal entry information to the ledger.

Correct AnswerverifiedShow Answer

In a double-entry accounting system,the total dollar amount debited must always equal the total dollar amount credited.

Correct AnswerverifiedShow Answer

When a company provides services for which cash will not be received until some future date,the company should record the amount billed as accounts receivable.

Correct AnswerverifiedShow Answer

Debit means increase and credit means decrease for all accounts.

Correct AnswerverifiedShow Answer

George Butler owned a tugboat and was tired of his current job.He decided to open a business that provides day tugboat tours to tourists along the Mississippi River near his hometown.Prepare journal entries to record the following transactions.

Correct AnswerverifiedNone...View AnswerShow Answer

The dividends account normally has a debit balance.

Correct AnswerverifiedShow Answer

Match the following terms with the appropriate definition. -Ledger

Correct AnswerverifiedShow Answer

Unearned revenue is classified as a(an)________ on a business's balance sheet.

Correct AnswerverifiedShow Answer

Correct Answerverifieda.Credit,b.Credit,c....View AnswerShow Answer

Correct Answerverified\[\begin{array} { | l | c | } \hline \t...View AnswerShow Answer

Match the following terms with the appropriate definition. -Journal

Correct AnswerverifiedShow Answer

Correct Answerverified\[\begin{array} { lcc } & \text { Amoun...View AnswerShow Answer

Match the following terms with the appropriate definition. -Debit

Correct AnswerverifiedShow Answer

Given the following errors,identify the one by itself that will cause the trial balance to be out of balance.

Correct AnswerverifiedShow Answer

On a trial balance,if the Debit and Credit column totals are equal,then:

Correct AnswerverifiedShow Answer

A general journal gives a complete record of each transaction in one place,and shows the debits and credits for each transaction.

Correct AnswerverifiedShow Answer

Golddigger Services,Inc.provides services to clients.On May 1,a client prepaid Golddigger Services $60,000 for 6-months services in advance.Golddigger Services' general journal entry to record this transaction will include a:

Correct AnswerverifiedShow Answer

An account used to record stockholders' investments in a business is called a(n) :

Correct AnswerverifiedShow Answer

What is a trial balance? What is its purpose?

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

If cash is received from customers in payment for products or services that have not yet been delivered to the customers,the business would record the cash receipt as:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
None...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a.Credit,b.Credit,c....
View Answer

Correct Answer
verified
\[\begin{array} { | l | c | }
\hline \t...
View Answer

Correct Answer
verified

Correct Answer
verified
\[\begin{array} { lcc }
& \text { Amoun...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified