Question 1

Which of the following accounts are debited to record increase in balances?

Accepted Answer

A)   assets and liabilities
B)   dividends and liabilities
C)   expenses and liabilities
D)   assets and expensesE) A) and D)
F) C) and D)

Question 2

The normal balance of a capital stock account is a debit.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following entries records the cash sale of capital stock to stockholders?

Accepted Answer

A)   debit Capital Stock; credit Cash
B)   debit Cash; credit Capital Stock
C)   debit Cash; credit Revenue
D)   debit Revenue; credit CashE) B) and C)
F) A) and D)

Question 4

The dividends account is an example of an expense.

Accepted Answer

A) True 
 B)False

Question 5

Accounts in the ledger are usually maintained in alphabetical order.

Accepted Answer

A) True 
 B)False

Question 6

Retained earnings account increases with debits.

Accepted Answer

A) True 
 B)False

Question 7

Match between columns
                        Premises: Unearned Income
Capital Stock
Utility Expense
Notes Payable
Rent Revenue
Mortgage Payable
Accounts Receivable
Dividends
Automobiles

Accepted Answer

The Answer of credit balance. and debit balance is...

Question 8

In which of the following types of accounts are decreases recorded by credits?

Accepted Answer

A)   liabilities
B)   retained earnings
C)   dividends
D)   revenuesE) None of the above
F) A) and C)

Question 9

The post reference notation used in the ledger is the account number.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following types of accounts have a normal credit balance?

Accepted Answer

A)   assets and liabilities
B)   liabilities and expenses
C)   revenues and liabilities
D)   capital stock and dividendsE) C) and D)
F) A) and C)

Question 11

Office supplies were sold by Ari's Alarm Service at cost to another repair shop, with cash received. Which of the following entries for Ari's Alarm Service records this transaction?

Accepted Answer

A)   Office Supplies, debit; Cash, credit
B)   Office Supplies, debit; Accounts Payable, credit
C)   Cash, debit; Office Supplies, credit
D)   Accounts Payable, debit; Office Supplies, creditE) C) and D)
F) A) and C)

Question 12

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

Accepted Answer

A)   Land, Accounts Payable, Dividends
B)   Accounts Payable, Unearned Revenue, Capital Stock
C)   Capital Stock, Accounts Receivable, Unearned Revenue
D)   Cash, Accounts Receivable, Capital StockE) A) and B)
F) A) and C)

Question 13

Transactions are initially entered into a record called a journal.

Accepted Answer

A) True 
 B)False

Question 14

The process of transferring the data from the journal to the ledger accounts is posting.

Accepted Answer

A) True 
 B)False

Question 15

The ____ is where a transaction can first be found on the accounting records.

Accepted Answer

A)   chart of accounts
B)   income statement
C)   balance sheet
D)   journalE) All of the above
F) C) and D)

Question 16

Revenue should be recognized when

Accepted Answer

A)   cash is received
B)   the service is performed
C)   the customer places an order
D)   the customer charges an orderE) A) and B)
F) All of the above

Question 17

On June 1, the cash account balance was $96,750. During June, cash receipts totaled $305,000 and the June 30 balance was $75,880. Determine the cash payments made during June.

Accepted Answer

75,880 = 96,750 + 30...

Question 18

All of the following statements regarding a horizontal analysis are true except

Accepted Answer

A)   A horizontal analysis is used to compare an item in a current statement with the same item in prior statements.
B)   A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement of cash flows.
C)   If Fees Earned in 2013 is $125,000 and Fees Earned in 2014 is $143,750, a horizontal analysis will indicate a 15% increase over this period.
D)   When two statements are compared in horizontal analysis, the earlier statement is used as the base for computing the amount and the percent of change.E) C) and D)
F) B) and C)

Question 19

What effect does this journal entry have on the accounts?

Accepted Answer

A)   Increase to Cash and increase to Land
B)   Increase to Land and decrease to Cash
C)   Decrease to Cash and decrease to Land
D)   Increase to Cash and decrease to LandE) C) and D)
F) All of the above

Question 20

The chart of accounts for Miguel Corporation includes the following:  On journal page 3, the following transaction was found:
 What are the posting references that will be found in the journal entry?

Accepted Answer

A)   41 and 11, respectively
B)   3 only
C)   11 and 41, respectively
D)   11 and 32, respectivelyE) C) and D)
F) A) and B)

Exam 2: Analyzing Transactions

Which of the following types of accounts have a normal credit balance?

Correct Answer
verified

Office supplies were sold by Ari's Alarm Service at cost to another repair shop, with cash received. Which of the following entries for Ari's Alarm Service records this transaction?

Correct Answer
verified

The normal balance of a capital stock account is a debit.

Correct Answer
verified

Which of the following accounts are debited to record increase in balances?

Correct Answer
verified

Retained earnings account increases with debits.

Correct Answer
verified

On June 1, the cash account balance was $96,750. During June, cash receipts totaled $305,000 and the June 30 balance was $75,880. Determine the cash payments made during June.

Correct Answer
verified
75,880 = 96,750 + 30...
View Answer

Transactions are initially entered into a record called a journal.

Correct Answer
verified

For the following, enter a "A" if the account normally has a debit balance and enter a "B" if the account normally has a credit balance.

What effect does this journal entry have on the accounts?

Correct Answer
verified

The post reference notation used in the ledger is the account number.

Correct Answer
verified

Revenue should be recognized when

Correct Answer
verified

The ____ is where a transaction can first be found on the accounting records.

Correct Answer
verified

Accounts in the ledger are usually maintained in alphabetical order.

Correct Answer
verified

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

Correct Answer
verified

Which of the following entries records the cash sale of capital stock to stockholders?

Correct Answer
verified

All of the following statements regarding a horizontal analysis are true except

Correct Answer
verified

The process of transferring the data from the journal to the ledger accounts is posting.

Correct Answer
verified

The chart of accounts for Miguel Corporation includes the following: On journal page 3, the following transaction was found: What are the posting references that will be found in the journal entry?

Correct Answer
verified

The dividends account is an example of an expense.

Correct Answer
verified

In which of the following types of accounts are decreases recorded by credits?

Correct Answer
verified

Exam 2: Analyzing Transactions

Which of the following types of accounts have a normal credit balance?

Correct AnswerverifiedShow Answer

Office supplies were sold by Ari's Alarm Service at cost to another repair shop, with cash received. Which of the following entries for Ari's Alarm Service records this transaction?

Correct AnswerverifiedShow Answer

The normal balance of a capital stock account is a debit.

Correct AnswerverifiedShow Answer

Which of the following accounts are debited to record increase in balances?

Correct AnswerverifiedShow Answer

Retained earnings account increases with debits.

Correct AnswerverifiedShow Answer

On June 1, the cash account balance was $96,750. During June, cash receipts totaled $305,000 and the June 30 balance was $75,880. Determine the cash payments made during June.

Correct Answerverified75,880 = 96,750 + 30...View AnswerShow Answer

Transactions are initially entered into a record called a journal.

Correct AnswerverifiedShow Answer

For the following, enter a "A" if the account normally has a debit balance and enter a "B" if the account normally has a credit balance.

What effect does this journal entry have on the accounts?

Correct AnswerverifiedShow Answer

The post reference notation used in the ledger is the account number.

Correct AnswerverifiedShow Answer

Revenue should be recognized when

Correct AnswerverifiedShow Answer

The ____ is where a transaction can first be found on the accounting records.

Correct AnswerverifiedShow Answer

Accounts in the ledger are usually maintained in alphabetical order.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following entries records the cash sale of capital stock to stockholders?

Correct AnswerverifiedShow Answer

All of the following statements regarding a horizontal analysis are true except

Correct AnswerverifiedShow Answer

The process of transferring the data from the journal to the ledger accounts is posting.

Correct AnswerverifiedShow Answer

The chart of accounts for Miguel Corporation includes the following: On journal page 3, the following transaction was found: What are the posting references that will be found in the journal entry?

Correct AnswerverifiedShow Answer

The dividends account is an example of an expense.

Correct AnswerverifiedShow Answer

In which of the following types of accounts are decreases recorded by credits?

Correct AnswerverifiedShow Answer

Correct Answer
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75,880 = 96,750 + 30...
View Answer

Correct Answer
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Correct Answer
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