Question 1

The gross increases in retained earnings attributable to business activities are called

Accepted Answer

A)   assets
B)   liabilities
C)   revenues
D)   expensesE) B) and C)
F) A) and D)

Question 2

Which are the parts of the T account?

Accepted Answer

A)   title, date, total
B)   date, debit side, credit side
C)   title, debit side, credit side
D)   title, debit side, totalE) All of the above
F) C) and D)

Question 3

This journal entry will

Accepted Answer

A)   increase Stockholders' Equity and decrease Cash
B)   increase Cash and decrease Stockholders' Equity
C)   increase Cash and increase Stockholders' Equity
D)   decrease Cash and decrease Stockholders' EquityE) A) and D)
F) A) and B)

Question 4

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 5

The chart of accounts for the Corning 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)   15 and 11, respectively
B)   11 and 15, respectively
C)   11 and 55, respectively
D)   3 onlyE) C) and D)
F) None of the above

Question 6

Journalize the following selected transactions for April 2011 in a two-column journal. Journal entry explanations may be omitted.

Accepted Answer

The answer of Journalize the following selected transactions for April...

Question 7

Debits will increase Unearned Revenues and Revenues.

Accepted Answer

A) True 
 B)False

Question 8

The T account got its name because it resembles the letter "T."

Accepted Answer

A) True 
 B)False

Question 9

Prepare a trial balance, listing the following accounts in proper sequence. The accounts (all normal balances) were taken from the ledger of Sophie Designs Co. on April 30, 2014.

Accepted Answer

The answer of Prepare a trial balance, listing the following...

Question 10

Scott, Inc. issued $40,000 of capital stock. How would this transaction be entered in the journal?

Accepted Answer

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

Question 11

Of the following, which istrue about assets?

Accepted Answer

A)   Assets include physical items and intangibles that have value.
B)   Assets include only physical items of value.
C)   Assets are owned solely by the stockholders of the company.
D)   Assets are the result of selling products or services to customers.E) A) and B)
F) All of the above

Question 12

A credit may signify a

Accepted Answer

A)   decrease in assets
B)   decrease in liabilities
C)   decrease in retained earnings
D)   decrease in revenueE) All of the above
F) B) and C)

Question 13

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 14

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to find the error?

Accepted Answer

A)   Determine the amount of the error and look for that amount on the trial balance.
B)   Determine the amount of the error and divide by two, then look for that amount on the trial balance.
C)   Determine the amount of the error and refer to the journal entries for that amount.
D)   Determine the amount of the error and divide by nine. If the result is evenly divided, then this type of error is likely.E) B) and D)
F) None of the above

Question 15

Journalizing is the process of entering amounts in the ledger.

Accepted Answer

A) True 
 B)False

Question 16

The chart of accounts classifies the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?

Accepted Answer

A)   1-Assets, 2-Liabilities, 3-Stockholders' Equity, 4-Expenses, 5-Revenues
B)   1-Assets, 2-Liabilities, 3-Stockholders' Equity, 4-Revenues, 5-Expenses
C)   1-Assets, 2-Stockholders' Equity, 3-Revenues, 4-Expenses, 5-Dividends
D)   1-Stockholders' Equity, 2-Dividends, 3-Revenues, 4-ExpensesE) None of the above
F) All of the above

Question 17

Which of the following is true about a T account?

Accepted Answer

A)   The left-hand side of the T account is called the debit side.
B)   The left-hand side of the T account is called the credit side.
C)   The right-hand side of the T account is called the debit side.
D)   None of these are true.E) A) and B)
F) A) and C)

Question 18

Which of the following entries records the receipt of a utility bill from the water company?

Accepted Answer

A)   debit Utilities Expense; credit Accounts Payable
B)   debit Utilities Payable; credit Accounts Receivable
C)   debit Accounts Payable; credit Cash
D)   debit Accounts Payable; credit Utilities PayableE) A) and B)
F) A) and C)

Question 19

State for each account whether it is likely to have from normal business operations (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also, indicate the normal balance of each account.

Accepted Answer

1. Credit entries only, normal credit ba...

Question 20

Which of the following entries records the collection of cash from cash customers?

Accepted Answer

A)   Fees Earned, debit; Cash, credit
B)   Fees Earned, debit; Accounts Receivable, credit
C)   Cash, debit; Fees Earned, credit
D)   Accounts Receivable, debit; Fees Earned, creditE) B) and C)
F) All of the above

Exam 2: Analyzing Transactions

Prepare a trial balance, listing the following accounts in proper sequence. The accounts (all normal balances) were taken from the ledger of Sophie Designs Co. on April 30, 2014.

Correct AnswerverifiedShow Answer

Scott, Inc. issued $40,000 of capital stock. How would this transaction be entered in the journal?

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

Journalizing is the process of entering amounts in the ledger.

Correct AnswerverifiedShow Answer

Which of the following entries records the collection of cash from cash customers?

Correct AnswerverifiedShow Answer

A credit may signify a

Correct AnswerverifiedShow Answer

This journal entry will

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

Which are the parts of the T account?

Correct AnswerverifiedShow Answer

The chart of accounts for the Corning 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 trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to find the error?

Correct AnswerverifiedShow Answer

Which of the following entries records the receipt of a utility bill from the water company?

Correct AnswerverifiedShow Answer

The T account got its name because it resembles the letter "T."

Correct AnswerverifiedShow Answer

Of the following, which istrue about assets?

Correct AnswerverifiedShow Answer

The gross increases in retained earnings attributable to business activities are called

Correct AnswerverifiedShow Answer

Journalize the following selected transactions for April 2011 in a two-column journal. Journal entry explanations may be omitted.

Correct AnswerverifiedShow Answer

State for each account whether it is likely to have from normal business operations (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also, indicate the normal balance of each account.

Correct Answerverified1. Credit entries only, normal credit ba...View AnswerShow Answer

Debits will increase Unearned Revenues and Revenues.

Correct AnswerverifiedShow Answer

The chart of accounts classifies the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?

Correct AnswerverifiedShow Answer

Which of the following is true about a T account?

Correct AnswerverifiedShow Answer

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1. Credit entries only, normal credit ba...
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