Question 1

Damien Lawson invests $45,000 to initiate the operation of his business, JumpStart, on January 7th. Journalize this transaction.

Accepted Answer

The answer of Damien Lawson invests $45,000 to initiate the...

Question 2

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 D)

Question 3

Which of the following group of accounts are increased with a debit?

Accepted Answer

A)   assets, liabilities, owner's equity
B)   assets, drawing, expenses
C)   assets, revenues, expenses
D)   assets, liabilities, revenuesE) A) and B)
F) A) and C)

Question 4

Which of the following is not a correct rule of debits and credits?

Accepted Answer

A)   assets, expenses and withdrawals are increased by debits
B)   assets are decreased by credits and have a normal debit balance
C)   liabilities, revenues and owner's equity are increased by credits
D)   the normal balance for revenues and expenses is a creditE) A) and B)
F) A) and C)

Question 5

Expenses follow the same debit and credit rules as

Accepted Answer

A)   Revenues
B)   Drawing Account
C)   Capital Account
D)   LiabilitiesE) A) and D)
F) None of the above

Question 6

Normal balances are the side that increase the account balance.

Accepted Answer

A) True 
 B)False

Question 7

A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should

Accepted Answer

A)   make no entry until the cash is received
B)   Cash, debit; Accounts Receivable, credit
C)   Cash, debit; Fees Earned, credit
D)   Accounts Receivable, debit; Fees Earned, creditE) All of the above
F) A) and C)

Question 8

All nine transactions for Dalton Survey Company for September, the first month of operations, are recorded in the following T accounts:
      Indicate the following for each debit and each credit:
  Present your answers in the following form:

Accepted Answer

The answer of All nine transactions for Dalton Survey Company...

Question 9

Which of the following errors will cause the trial balance totals to be unequal?

Accepted Answer

A)   posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted
B)   failure to record a transaction or to post a transaction
C)   recording the same transaction more than once
D)   recording the same erroneous amount for both the debit and the credit parts of a transactionE) B) and D)
F) None of the above

Question 10

The chart of accounts should be the same for each business.

Accepted Answer

A) True 
 B)False

Question 11

Randomly listed below are the steps for preparing a trial balance:  What is the proper order of these steps?

Accepted Answer

A)   (3) , (2) , (4) , (1) 
B)   (2) , (3) , (4) , (1) 
C)   (3) , (2) , (1) , (4) 
D)   (4) , (3) , (2) , (1) E) A) and D)
F) C) and D)

Question 12

In accordance with the debit and credit rules, which of the following is true?

Accepted Answer

A)   Debits increase assets.
B)   Credits increase assets.
C)   Debits increase both assets and capital.
D)   Credits increase both assets and liabilities.E) None of the above
F) A) and D)

Question 13

Supplies purchased on account were incorrectly recorded as Office Equipment. The correcting entry would be

Accepted Answer

A)   Supplies, debit; Office Equipment, credit.
B)   Accounts Receivable, debit; Supplies, credit.
C)   Office Equipment, debit; Supplies Expense, credit.
D)   Supplies, debit; Accounts Payable, credit.E) A) and D)
F) B) and D)

Question 14

On October 30th Damien Lawson withdraws $3,330 from JumpStart for personal use. Journalize this event.

Accepted Answer

The answer of On October 30th Damien Lawson withdraws $3,330...

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Which of the following abbreviations is correct?

Accepted Answer

A)   Debit "Dr", Credit "Cd"
B)   Debit "Db", Credit "Cr"
C)   Debit "Db", Credit "Cd"
D)   Debit "Dr", Credit "Cr"E) A) and B)
F) A) and C)

Question 18

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Accepted Answer

A) True 
 B)False

Question 19

Analyze the following transactions as to their effect on the accounting equation.
  Some of the possible effects of a transaction on the accounting equation are listed below:
  Put the appropriate letter next to each transaction.

Accepted Answer

The answer of Analyze the following transactions as to their...

Question 20

When an owner invests assets in the business, the capital account increases due to revenue being earned.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

When an owner invests assets in the business, the capital account increases due to revenue being earned.

Correct AnswerverifiedShow Answer

Expenses follow the same debit and credit rules as

Correct AnswerverifiedShow Answer

Which of the following is not a correct rule of debits and credits?

Correct AnswerverifiedShow Answer

A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should

Correct AnswerverifiedShow Answer

Analyze the following transactions as to their effect on the accounting equation. Some of the possible effects of a transaction on the accounting equation are listed below: Put the appropriate letter next to each transaction.

Correct AnswerverifiedShow Answer

Which of the following group of accounts are increased with a debit?

Correct AnswerverifiedShow Answer

In accordance with the debit and credit rules, which of the following is true?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Supplies purchased on account were incorrectly recorded as Office Equipment. The correcting entry would be

Correct AnswerverifiedShow Answer

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

All nine transactions for Dalton Survey Company for September, the first month of operations, are recorded in the following T accounts: Indicate the following for each debit and each credit: Present your answers in the following form:

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

Normal balances are the side that increase the account balance.

Correct AnswerverifiedShow Answer

On October 30th Damien Lawson withdraws $3,330 from JumpStart for personal use. Journalize this event.

Correct AnswerverifiedShow Answer

Damien Lawson invests $45,000 to initiate the operation of his business, JumpStart, on January 7th. Journalize this transaction.

Correct AnswerverifiedShow Answer

Which of the following abbreviations is correct?

Correct AnswerverifiedShow Answer

Randomly listed below are the steps for preparing a trial balance: What is the proper order of these steps?

Correct AnswerverifiedShow Answer

Which of the following errors will cause the trial balance totals to be unequal?

Correct AnswerverifiedShow Answer

The chart of accounts should be the same for each business.

Correct AnswerverifiedShow Answer

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