Question 1

Which of the following applications of the rules of debit and credit is true?

Accepted Answer

A)   decrease Prepaid Insurance with a credit and the normal balance is a credit
B)   increase Accounts Payable with a credit and the normal balance is a debit
C)   increase Supplies Expense with a debit and the normal balance is a debit
D)   decrease Cash with a debit and the normal balance is a creditE) A) and B)
F) B) and D)

Question 2

The normal balance of the dividends account is a debit.

Accepted Answer

A) True 
 B)False

Question 3

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

Accepted Answer

A) True 
 B)False

Question 4

Answer the following questions for each of the errors listed below, considered individually:
  Present your answers in columnar form, using the following headings:
  Errors:

Accepted Answer

The answer of Answer the following questions for each of...

Question 5

On November 10th, JumpStart Co. provides $2,900 in services to clients. At the time of service, the clients paid $600.00 in cash and put the balance on account.
(a) Journalize this event.
(b) On November 20th, JumpStart Co. clients paid an additional $900 on their accounts due. Journalize this event.
(c) Calculate the amount of accounts receivable on November 30th.

Accepted Answer

The answer of On November 10th, JumpStart Co. provides $2,900...

Question 6

Posting a transaction twice will cause the trial balance totals to be equal.

Accepted Answer

A) True 
 B)False

Question 7

Which group of accounts is comprised of only assets?

Accepted Answer

A)   Cash, Accounts Payable, Buildings
B)   Accounts Receivable, Revenue, Cash
C)   Prepaid Expenses, Buildings, Patents
D)   Unearned Revenues, Prepaid Expenses, CashE) B) and C)
F) All of the above

Question 8

The increase side of all accounts is the normal balance.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Accepted Answer

A)   Prepaid Rent, debit; Rent Revenue, credit.
B)   Cash, debit; Unearned Rent, credit.
C)   Cash, debit; Prepaid Rent, credit.
D)   Cash, debit; Rent Expense credit.E) B) and D)
F) B) and C)

Question 10

What is the best explanation for this journal entry?

Accepted Answer

A)   Received cash for services performed.
B)   Received cash for services to be performed in the future.
C)   Paid cash in advance for services to be done.
D)   Paid cash for services to be performed.E) A) and C)
F) A) and D)

Question 11

When a business receives a bill from the utility company, no entry should be made until the invoice is paid.

Accepted Answer

A) True 
 B)False

Question 12

The chart of accounts for the Corning Corporation includes the following:  On journal page 3, the following transaction was found:
 What is the posting reference that will be found in the Prepaid Insurance account?

Accepted Answer

A)   11
B)   15
C)   3
D)   none of theseE) B) and D)
F) A) and C)

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) All of the above

Question 14

The journal includes both debit and credit accounts for each transaction.

Accepted Answer

A) True 
 B)False

Question 15

A cash payment is recorded on the cash account as a

Accepted Answer

A)   neither a debit or a credit
B)   credit
C)   debit
D)   both a debit and a creditE) B) and D)
F) B) and C)

Question 16

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 17

Which of the following describes the classification and normal balance of the fees earned account?

Accepted Answer

A)   an asset with a credit balance
B)   a liability with a credit balance
C)   an expense with a debit balance
D)   a revenue with a credit balanceE) A) and C)
F) All of the above

Question 18

Even when a trial balance is in balance, there may be errors in the individual accounts.

Accepted Answer

A) True 
 B)False

Question 19

On the chart of accounts, the balance sheet accounts are normally listed in the following order

Accepted Answer

A)   liabilities, assets, stockholders' equity
B)   assets, liabilities, stockholders' equity
C)   stockholders' equity, assets, liabilities
D)   assets, stockholders' equity, liabilitiesE) All of the above
F) B) and D)

Question 20

The classification and normal balance of the supplies expense account is a(n)

Accepted Answer

A)   asset with a debit balance
B)   asset with a credit balance
C)   expense with a debit balance
D)   liability with a credit balanceE) A) and D)
F) B) and D)

Exam 2: Analyzing Transactions

When a business receives a bill from the utility company, no entry should be made until the invoice is paid.

Correct Answer
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Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Correct Answer
verified

Posting a transaction twice will cause the trial balance totals to be equal.

Correct Answer
verified

Correct Answer
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On the chart of accounts, the balance sheet accounts are normally listed in the following order

Correct Answer
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The increase side of all accounts is the normal balance.

Correct Answer
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Which of the following describes the classification and normal balance of the fees earned account?

Correct Answer
verified

The classification and normal balance of the supplies expense account is a(n)

Correct Answer
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The normal balance of the dividends account is a debit.

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

Correct Answer
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Which group of accounts is comprised of only assets?

Correct Answer
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The chart of accounts for the Corning Corporation includes the following: On journal page 3, the following transaction was found: What is the posting reference that will be found in the Prepaid Insurance account?

Correct Answer
verified

A cash payment is recorded on the cash account as a

Correct Answer
verified

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

Correct Answer
verified

Which of the following applications of the rules of debit and credit is true?

Correct Answer
verified

Answer the following questions for each of the errors listed below, considered individually: Present your answers in columnar form, using the following headings: Errors:

Correct Answer
verified

What is the best explanation for this journal entry?

Correct Answer
verified

The journal includes both debit and credit accounts for each transaction.

Correct Answer
verified

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

Correct Answer
verified

Even when a trial balance is in balance, there may be errors in the individual accounts.

Correct Answer
verified

Exam 2: Analyzing Transactions

When a business receives a bill from the utility company, no entry should be made until the invoice is paid.

Correct AnswerverifiedShow Answer

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Correct AnswerverifiedShow Answer

Posting a transaction twice will cause the trial balance totals to be equal.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

On the chart of accounts, the balance sheet accounts are normally listed in the following order

Correct AnswerverifiedShow Answer

The increase side of all accounts is the normal balance.

Correct AnswerverifiedShow Answer

Which of the following describes the classification and normal balance of the fees earned account?

Correct AnswerverifiedShow Answer

The classification and normal balance of the supplies expense account is a(n)

Correct AnswerverifiedShow Answer

The normal balance of the dividends account is a debit.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which group of accounts is comprised of only assets?

Correct AnswerverifiedShow Answer

The chart of accounts for the Corning Corporation includes the following: On journal page 3, the following transaction was found: What is the posting reference that will be found in the Prepaid Insurance account?

Correct AnswerverifiedShow Answer

A cash payment is recorded on the cash account as a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following applications of the rules of debit and credit is true?

Correct AnswerverifiedShow Answer

Answer the following questions for each of the errors listed below, considered individually: Present your answers in columnar form, using the following headings: Errors:

Correct AnswerverifiedShow Answer

What is the best explanation for this journal entry?

Correct AnswerverifiedShow Answer

The journal includes both debit and credit accounts for each transaction.

Correct AnswerverifiedShow Answer

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

Correct AnswerverifiedShow Answer

Even when a trial balance is in balance, there may be errors in the individual accounts.

Correct AnswerverifiedShow Answer

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