Question 1

Journalize the five transactions for Mirmax Rentals described below.

Accepted Answer

The answer of Journalize the five transactions for Mirmax Rentals...

Question 2

All stockholders' equity accounts record increases to the accounts with credits.

Accepted Answer

A) True 
 B)False

Question 3

On November 1,Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land.Provide the journal entry for this transaction.

Accepted Answer

The answer of On November 1,Nikle Company made a cash...

Question 4

Which of the following stockholders' equity accounts follows the same debit and credit rules as liabilities?

Accepted Answer

A)  expense accounts only
B)  dividends accounts only
C)  revenue accounts only
D)  expense and dividends accountsE) B) and C)
F) A) and D)

Question 5

Liabilities are debts owed by the business entity.

Accepted Answer

A) True 
 B)False

Question 6

The balance of the account can be determined by adding all of the debits,adding all of the credits,and adding the amounts together.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following situations increase stockholders' equity?

Accepted Answer

A)  Supplies are purchased on account.
B)  Services are provided on account.
C)  Cash is received from customers on account.
D)  Utility bill will be paid next month.E) None of the above
F) A) and B)

Question 8

Liabilities are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 9

Accounts are classified in the ledger

Accepted Answer

A)  chronologically
B)  alphabetically
C)  in accordance with their appearance in the financial statements
D)  with the accounts used most often listed firstE) None of the above
F) B) and D)

Question 10

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Accepted Answer

A) True 
 B)False

Question 11

Cash was paid by Janer's Cleaning Service to creditors on account.Which of the following entries for Janer's Cleaning Service records this transaction?

Accepted Answer

A)  Cash,debit; Common Stock,credit
B)  Accounts Payable,debit; Cash,credit
C)  Accounts Receivable,debit; Cash,credit
D)  Accounts Payable,debit; Account Receivable,creditE) A) and C)
F) B) and C)

Question 12

On January 1, Merry Walker and other stockholders established a catering service.  Listed below are accounts to use for transactions a through e, each identified by a number.  Following this list are the transactions that occurred in Walker’s first month of operation.  You are to indicate for each transaction the accounts that should be debited and credited by placing the account numbers in the appropriate box.
1.	Cash
2.	Accounts Receivable
3.	Supplies
4.	Prepaid Insurance
5.	Equipment
6.	Truck
7.	Notes Payable
8.	Accounts Payable
9.	Common Stock
10.	Dividends
11.	Fees Earned
12.	Wages Expense
13.	Rent Expense
14.	Utilities Expense
15.	Truck Expense
16.	Miscellaneous Expense
17.	Insurance Expense

Accepted Answer

None...

Question 13

The accounts payable account is listed in the chart of accounts as an asset.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

The Unearned Revenues account is an example of a liability.

Accepted Answer

A) True 
 B)False

Question 16

The stockholders' equity will be reduced by all of the following except

Accepted Answer

A)  revenues
B)  expenses
C)  dividends
D)  all of theseE) C) and D)
F) B) and C)

Question 17

The posting process will include the transfer of which of the following data from the journal to the account?

Accepted Answer

A)  date,amount debit or credit
B)  date,amount debit or credit,journal page number
C)  amount debit or credit,account number
D)  date,amount debit or credit,account numberE) None of the above
F) A) and D)

Question 18

The recording of cash payments from the cash account is done by entering the amount as a credit.

Accepted Answer

A) True 
 B)False

Question 19

Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down,with the remainder to be paid later.The correct entry would be

Accepted Answer

A)  
B)  
C)  
D)  E) C) and D)
F) B) and D)

Question 20

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 common stock.
D)  Credits increase both assets and liabilities.E) B) and C)
F) A) and B)

Exam 2: Analyzing Transactions

Correct Answer
verified
None...
View Answer

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

Correct Answer
verified

On November 1,Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land.Provide the journal entry for this transaction.

Correct Answer
verified

Journalize the five transactions for Mirmax Rentals described below.

Correct Answer
verified

The balance of the account can be determined by adding all of the debits,adding all of the credits,and adding the amounts together.

Correct Answer
verified

Liabilities are increased with debits and decreased with credits.

Correct Answer
verified

Which of the following stockholders' equity accounts follows the same debit and credit rules as liabilities?

Correct Answer
verified

Accounts are classified in the ledger

Correct Answer
verified

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

Correct Answer
verified

All stockholders' equity accounts record increases to the accounts with credits.

Correct Answer
verified

Liabilities are debts owed by the business entity.

Correct Answer
verified

Cash was paid by Janer's Cleaning Service to creditors on account.Which of the following entries for Janer's Cleaning Service records this transaction?

Correct Answer
verified

Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down,with the remainder to be paid later.The correct entry would be

Correct Answer
verified

The posting process will include the transfer of which of the following data from the journal to the account?

Correct Answer
verified

The accounts payable account is listed in the chart of accounts as an asset.

Correct Answer
verified

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Correct Answer
verified

The stockholders' equity will be reduced by all of the following except

Correct Answer
verified

The recording of cash payments from the cash account is done by entering the amount as a credit.

Correct Answer
verified

The Unearned Revenues account is an example of a liability.

Correct Answer
verified

Which of the following situations increase stockholders' equity?

Correct Answer
verified

Exam 2: Analyzing Transactions

Correct AnswerverifiedNone...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

On November 1,Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land.Provide the journal entry for this transaction.

Correct AnswerverifiedShow Answer

Journalize the five transactions for Mirmax Rentals described below.

Correct AnswerverifiedShow Answer

The balance of the account can be determined by adding all of the debits,adding all of the credits,and adding the amounts together.

Correct AnswerverifiedShow Answer

Liabilities are increased with debits and decreased with credits.

Correct AnswerverifiedShow Answer

Which of the following stockholders' equity accounts follows the same debit and credit rules as liabilities?

Correct AnswerverifiedShow Answer

Accounts are classified in the ledger

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

All stockholders' equity accounts record increases to the accounts with credits.

Correct AnswerverifiedShow Answer

Liabilities are debts owed by the business entity.

Correct AnswerverifiedShow Answer

Cash was paid by Janer's Cleaning Service to creditors on account.Which of the following entries for Janer's Cleaning Service records this transaction?

Correct AnswerverifiedShow Answer

Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down,with the remainder to be paid later.The correct entry would be

Correct AnswerverifiedShow Answer

The posting process will include the transfer of which of the following data from the journal to the account?

Correct AnswerverifiedShow Answer

The accounts payable account is listed in the chart of accounts as an asset.

Correct AnswerverifiedShow Answer

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Correct AnswerverifiedShow Answer

The stockholders' equity will be reduced by all of the following except

Correct AnswerverifiedShow Answer

The recording of cash payments from the cash account is done by entering the amount as a credit.

Correct AnswerverifiedShow Answer

The Unearned Revenues account is an example of a liability.

Correct AnswerverifiedShow Answer

Which of the following situations increase stockholders' equity?

Correct AnswerverifiedShow Answer

Correct Answer
verified
None...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified