Question 1

Prepare a journal entry for the purchase of a truck on April 4 for $85,700 , paying $15,000 cash and the remainder on account.Omit explanation.

Accepted Answer

The answer of Prepare a journal entry for the purchase...

Question 2

The chart of accounts for the Corning Company includes the following:

Page 3 of the journal contains the following entry:

-What posting references will be found in the journal entry?

Accepted Answer

A)  15,11
B)  15,3
C)  11,3
D)  3,15E) B) and C)
F) All of the above

Question 3

Journal entries include both debit and credit accounts for each transaction.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true regarding normal balances of accounts?

Accepted Answer

A)  All accounts have a normal debit balance.
B)  The normal balance of all accounts will have either a positive or negative balance.
C)  Accounts that have a normal debit balance will only have debit entries,never credit entries.
D)  The normal balance is on the increase side of the account.E) A) and D)
F) A) and C)

Question 5

The balance of an account is determined by

Accepted Answer

A)  adding all of the debits to all of the credits
B)  always subtracting the debits from the credits
C)  always subtracting the credits from the debits
D)  adding all of the debits,adding all of the credits,and then subtracting the smaller sum from the larger sumE) B) and C)
F) A) and B)

Question 6

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee.When Jamison receives cash from the employee for the amount of the overpayment,which of the following entries will Jamison make?

Accepted Answer

A)  Cash,debit; Wages Expense,credit
B)  Wages Payable,debit; Wages Expense,credit
C)  Wages Expense,debit; Cash,credit
D)  Cash,debit; Wages Payable,creditE) A) and D)
F) B) and C)

Question 7

Which of the following groups of accounts have a normal debit balance?

Accepted Answer

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

Question 8

A cash payment is recorded in the cash account as

Accepted Answer

A)  neither a debit nor a credit
B)  a credit
C)  a debit
D)  either a debit or a creditE) C) and D)
F) A) and C)

Question 9

The Posting Reference columns are used to trace transactions from the accounts to the journal.What will be entered in the Posting Reference column of 1 the journal and 2 the account?

Accepted Answer

A)  1 the amount of the debit or credit and 2 the journal page number
B)  1 the journal page number and 2 the date of the transaction
C)  1 the journal page number and 2 the account number
D)  1 the account number and 2 the journal page numberE) A) and D)
F) A) and C)

Question 10

Exhibit 2-1
All nine transactions for Ralston Sports Co. for September, the first month of operations, are recorded in the following T accounts:

-Refer to Exhibit 2-1.Prepare a trial balance,listing the accounts in their proper order.

Accepted Answer

None...

Question 11

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 confirm this suspicion?

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 C)
F) B) and D)

Question 12

Which of the following accounts is a stockholders' equity account?

Accepted Answer

A)  Cash
B)  Accounts Payable
C)  Prepaid Insurance
D)  Common StockE) B) and D)
F) C) and D)

Question 13

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is not true about liabilities?

Accepted Answer

A)  Liabilities are debts owed to outsiders.
B)  Account titles of liabilities often include the term "payable."
C)  Cash received before a service is performed creates a liability.
D)  Liabilities do not include wages owed to employees of the company.E) A) and B)
F) All of the above

Question 15

Which of the following is not true with a double-entry accounting system?

Accepted Answer

A)  The accounting equation remains in balance.
B)  The sum of all debits is always equal to the sum of all credits in each journal entry.
C)  Each business transaction will have two debits.
D)  Every transaction affects at least two accounts.E) B) and D)
F) None of the above

Question 16

A debit may signify an

Accepted Answer

A)  decrease in asset accounts
B)  decrease in liability accounts
C)  increase in the common stock account
D)  decrease in the dividends accountE) A) and B)
F) A) and C)

Question 17

The recording of cash receipts to the cash account will be done by debiting the account.

Accepted Answer

A) True 
 B)False

Question 18

Below is the unadjusted trial balance for Dawson Designs.
REQUIRED:
1. Identify the errors in the trial balance.All accounts have normal balances.
2. Prepare a corrected trial balance.

Accepted Answer

None...

Question 19

Expenses follow the same debit and credit rules as

Accepted Answer

A)  revenues
B)  the asset account
C)  the common stock account
D)  liabilitiesE) B) and D)
F) C) and D)

Question 20

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing,and therefore should be equal.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

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 confirm this suspicion?

Correct AnswerverifiedShow Answer

Which of the following is true regarding normal balances of accounts?

Correct AnswerverifiedShow Answer

A cash payment is recorded in the cash account as

Correct AnswerverifiedShow Answer

Prepare a journal entry for the purchase of a truck on April 4 for $85,700 , paying $15,000 cash and the remainder on account.Omit explanation.

Correct AnswerverifiedShow Answer

Which of the following is not true with a double-entry accounting system?

Correct AnswerverifiedShow Answer

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee.When Jamison receives cash from the employee for the amount of the overpayment,which of the following entries will Jamison make?

Correct AnswerverifiedShow Answer

Which of the following statements is not true about liabilities?

Correct AnswerverifiedShow Answer

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing,and therefore should be equal.

Correct AnswerverifiedShow Answer

Expenses follow the same debit and credit rules as

Correct AnswerverifiedShow Answer

The recording of cash receipts to the cash account will be done by debiting the account.

Correct AnswerverifiedShow Answer

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

Correct AnswerverifiedShow Answer

The balance of an account is determined by

Correct AnswerverifiedShow Answer

Which of the following groups of accounts have a normal debit balance?

Correct AnswerverifiedShow Answer

The Posting Reference columns are used to trace transactions from the accounts to the journal.What will be entered in the Posting Reference column of 1 the journal and 2 the account?

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Exhibit 2-1 All nine transactions for Ralston Sports Co. for September, the first month of operations, are recorded in the following T accounts: -Refer to Exhibit 2-1.Prepare a trial balance,listing the accounts in their proper order.

Correct AnswerverifiedNone...View AnswerShow Answer

Journal entries include both debit and credit accounts for each transaction.

Correct AnswerverifiedShow Answer

Below is the unadjusted trial balance for Dawson Designs. REQUIRED: 1. Identify the errors in the trial balance.All accounts have normal balances. 2. Prepare a corrected trial balance.

Correct AnswerverifiedNone...View AnswerShow Answer

The chart of accounts for the Corning Company includes the following: Page 3 of the journal contains the following entry: -What posting references will be found in the journal entry?

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Which of the following accounts is a stockholders' equity account?

Correct AnswerverifiedShow Answer

A debit may signify an

Correct AnswerverifiedShow Answer

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