Question 1

Grills R Us Catering provided $1,000 of catering services and billed its client for the amount owed.Given the choices below,determine the general journal entry that Grills R Us Catering will make to record this transaction.

Accepted Answer

A)   
B)   
C)   
D)   E) All of the above
F) A) and C)

Question 2

The ordering of accounts in a trial balance typically follows their identification number from the chart of accounts,that is,assets first,then liabilities,then owner's capital and withdrawals,followed by revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 3

A double-entry accounting system is an accounting system:

Accepted Answer

A)  That records each transaction twice.
B)  That records the effects of transactions and other events in at least two accounts with equal debits and credits.
C)  In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits.
D)  That may only be used if T-accounts are used.
E)  That insures that errors never occur.F) C) and E)
G) All of the above B

Question 4

Drew Castle is an insurance appraiser.Shown below are (a)several accounts in his ledger with each account preceded by an identification number,and (b)several transactions completed by Castle.Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction.

Accepted Answer

The answer of Drew Castle is an insurance appraiser.Shown below...

Question 5

Bologna Lodging had the following accounts and balances as of December 31:  Using the information in the table,calculate the total assets reported on Bologna's balance sheet for the period.

Accepted Answer

A)  $24,900.
B)  $25,400.
C)  $22,500.
D)  $25,900.
E)  $23,400.F) C) and E)
G) A) and C)

Question 6

The first step in the processing of a transaction is to analyze the transaction and source documents.

Accepted Answer

A) True 
 B)False

Question 7

The trial balance can serve as a replacement for the balance sheet,since total debits must equal total credits.

Accepted Answer

A) True 
 B)False

Question 8

Identify the item below that would cause the trial balance to not balance?

Accepted Answer

A)  A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash.
B)  The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and credit to Accounts Payable.
C)  A $50 cash receipt for the performance of a service was not recorded at all.
D)  The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200.
E)  The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.F) A) and B)
G) B) and D)

Question 9

An owner's withdrawal account normally has a debit balance.

Accepted Answer

A) True 
 B)False  True

Question 10

On December 3,the ABBJ Company paid $1,400 cash in salaries to office personnel.Prepare the general journal entry to record this transaction.

Accepted Answer

The answer of On December 3,the ABBJ Company paid $1,400...

Question 11

A $130 credit to Supplies was credited to Fees Earned by mistake.By what amounts are the accounts under- or overstated as a result of this error?

Accepted Answer

A)  Supplies,understated $130;Fees Earned,overstated $130.
B)  Supplies,understated $260;Fees Earned,overstated $130.
C)  Supplies,overstated $130;Fees Earned,overstated $130.
D)  Supplies,overstated $130;Fees Earned,understated $130.
E)  Supplies,overstated $260;Fees Earned,understated $130.F) A) and E)
G) C) and E)

Question 12

During the month of February,Victor Services had cash receipts of $7,500 and cash disbursements of $8,600.The February 28 cash balance was $1,800.What was the February 1 beginning cash balance?

Accepted Answer

A)  $700.
B)  $1,100.
C)  $2,900.
D)  $0.
E)  $4,300.F) A) and E)
G) A) and B) C

Question 13

The financial statement that summarizes the changes in an owner's capital account is called the balance sheet.

Accepted Answer

A) True 
 B)False

Question 14

A balanced trial balance is proof that no errors were made in journalizing transactions,posting to the ledger,and preparing the trial balance.

Accepted Answer

A) True 
 B)False

Question 15

The debt ratio of Jackson's Shoes is .9 and the debt ratio of Billy's Catering is 1.0.Based on this information,an investor can conclude:

Accepted Answer

A)  Billy's Catering finances a relatively lower portion of its assets with liabilities than Jackson's Shoes.
B)  Billy's Catering has a lower risk from its financial leverage.
C)  Jackson's Shoes has a higher risk from its financial leverage.
D)  Billy's Catering has the exact same dollar amount of total liabilities and total assets.
E)  Jackson's Shoes has less equity per dollar of assets than Billy's Catering.F) A) and E)
G) A) and C)

Question 16

Identify the account below that is classified as an asset in a company's chart of accounts:

Accepted Answer

A)  Accounts Receivable
B)  Accounts Payable
C)  Owner's Capital
D)  Unearned Revenue
E)  Service RevenueF) A) and B)
G) D) and E)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Indicate on which of the financial statements the following items appears.Use I for income statement,E for statement of owner's equity,and B for balance sheet.More than one statement may be appropriate for some items.

Accepted Answer

The answer of Indicate on which of the financial statements...

Question 19

An account is a record of increases and decreases in a specific asset,liability,equity,revenue,or expense item.

Accepted Answer

A) True 
 B)False

Question 20

The third step in the analyzing and recording process is to post the information to the ___________________.

Accepted Answer

The answer of The third step in the analyzing and...

Exam 2: Analyzing and Recording Transactions

Grills R Us Catering provided $1,000 of catering services and billed its client for the amount owed.Given the choices below,determine the general journal entry that Grills R Us Catering will make to record this transaction.

Correct Answer
verified

The ordering of accounts in a trial balance typically follows their identification number from the chart of accounts,that is,assets first,then liabilities,then owner's capital and withdrawals,followed by revenues and expenses.

Correct Answer
verified

A double-entry accounting system is an accounting system:

Correct Answer
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B

Correct Answer
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Bologna Lodging had the following accounts and balances as of December 31: Using the information in the table,calculate the total assets reported on Bologna's balance sheet for the period.

Correct Answer
verified

The first step in the processing of a transaction is to analyze the transaction and source documents.

Correct Answer
verified

The trial balance can serve as a replacement for the balance sheet,since total debits must equal total credits.

Correct Answer
verified

Identify the item below that would cause the trial balance to not balance?

Correct Answer
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An owner's withdrawal account normally has a debit balance.

Correct Answer
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True

On December 3,the ABBJ Company paid $1,400 cash in salaries to office personnel.Prepare the general journal entry to record this transaction.

Correct Answer
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A $130 credit to Supplies was credited to Fees Earned by mistake.By what amounts are the accounts under- or overstated as a result of this error?

Correct Answer
verified

During the month of February,Victor Services had cash receipts of $7,500 and cash disbursements of $8,600.The February 28 cash balance was $1,800.What was the February 1 beginning cash balance?

Correct Answer
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C

The financial statement that summarizes the changes in an owner's capital account is called the balance sheet.

Correct Answer
verified

A balanced trial balance is proof that no errors were made in journalizing transactions,posting to the ledger,and preparing the trial balance.

Correct Answer
verified

The debt ratio of Jackson's Shoes is .9 and the debt ratio of Billy's Catering is 1.0.Based on this information,an investor can conclude:

Correct Answer
verified

Identify the account below that is classified as an asset in a company's chart of accounts:

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

Correct Answer
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Indicate on which of the financial statements the following items appears.Use I for income statement,E for statement of owner's equity,and B for balance sheet.More than one statement may be appropriate for some items.

Correct Answer
verified

An account is a record of increases and decreases in a specific asset,liability,equity,revenue,or expense item.

Correct Answer
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The third step in the analyzing and recording process is to post the information to the ___________________.

Correct Answer
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Exam 2: Analyzing and Recording Transactions

Grills R Us Catering provided $1,000 of catering services and billed its client for the amount owed.Given the choices below,determine the general journal entry that Grills R Us Catering will make to record this transaction.

Correct AnswerverifiedShow Answer

The ordering of accounts in a trial balance typically follows their identification number from the chart of accounts,that is,assets first,then liabilities,then owner's capital and withdrawals,followed by revenues and expenses.

Correct AnswerverifiedShow Answer

A double-entry accounting system is an accounting system:

Correct AnswerverifiedB

Correct AnswerverifiedShow Answer

Bologna Lodging had the following accounts and balances as of December 31: Using the information in the table,calculate the total assets reported on Bologna's balance sheet for the period.

Correct AnswerverifiedShow Answer

The first step in the processing of a transaction is to analyze the transaction and source documents.

Correct AnswerverifiedShow Answer

The trial balance can serve as a replacement for the balance sheet,since total debits must equal total credits.

Correct AnswerverifiedShow Answer

Identify the item below that would cause the trial balance to not balance?

Correct AnswerverifiedShow Answer

An owner's withdrawal account normally has a debit balance.

Correct AnswerverifiedTrue

On December 3,the ABBJ Company paid $1,400 cash in salaries to office personnel.Prepare the general journal entry to record this transaction.

Correct AnswerverifiedShow Answer

A $130 credit to Supplies was credited to Fees Earned by mistake.By what amounts are the accounts under- or overstated as a result of this error?

Correct AnswerverifiedShow Answer

During the month of February,Victor Services had cash receipts of $7,500 and cash disbursements of $8,600.The February 28 cash balance was $1,800.What was the February 1 beginning cash balance?

Correct AnswerverifiedC

The financial statement that summarizes the changes in an owner's capital account is called the balance sheet.

Correct AnswerverifiedShow Answer

A balanced trial balance is proof that no errors were made in journalizing transactions,posting to the ledger,and preparing the trial balance.

Correct AnswerverifiedShow Answer

The debt ratio of Jackson's Shoes is .9 and the debt ratio of Billy's Catering is 1.0.Based on this information,an investor can conclude:

Correct AnswerverifiedShow Answer

Identify the account below that is classified as an asset in a company's chart of accounts:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Indicate on which of the financial statements the following items appears.Use I for income statement,E for statement of owner's equity,and B for balance sheet.More than one statement may be appropriate for some items.

Correct AnswerverifiedShow Answer

An account is a record of increases and decreases in a specific asset,liability,equity,revenue,or expense item.

Correct AnswerverifiedShow Answer

The third step in the analyzing and recording process is to post the information to the ___________________.

Correct AnswerverifiedShow Answer

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B

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True

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C

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