Question 1

For a month's transactions for a typical medium-sized business, the accounts payable account is likely to have only credit entries.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following will increase stockholders' equity?

Accepted Answer

A)   ​expenses > revenues
B)   ​the company pays dividends
C)   ​revenues > expenses
D)   ​cash is received from customers on accountE) C) and D)
F) A) and D)

Question 3

Liabilities are debts owed by the business entity.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following balances is always due to an error?

Accepted Answer

A)   Office Equipment - credit balance of $500
B)   Retained Earnings - debit balance of $1,000
C)   Dividends - debit balance of $2,500
D)   Accounts Payable - debit balance of $600E) B) and D)
F) None of the above

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which group of accounts is composed 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) A) and C)
F) B) and C)

Question 7

Richardson Company has a condensed income statement as shown.  
 Using horizontal analysis, calculate the amount and percent change for sales. Round percentages to one decimal place.

Accepted Answer

A)   $15,500, 19.6%
B)   ($15,500) , (10.3%) 
C)   $15,500, 10.3%
D)   ($15,500) , (9.4%) E) None of the above
F) A) and B)

Question 8

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 9

The chart of accounts for the Miguel Company includes the following:  
 Page 3 of the journal contains the following transaction:
  
-What is the posting reference that will be found in the cash account?

Accepted Answer

A)   11
B)   15
C)   3
D)   13E) All of the above
F) A) and D)

Question 10

Of the following, which is true about assets?

Accepted Answer

A)   Assets include both physical and intangible items.
B)   Assets include only physical items.
C)   Assets are the personal property of the stockholders of the company.
D)   Assets are not increased as a result of selling products or services to customers.E) A) and D)
F) All of the above

Question 11

Which statement(s)  concerning cash is (are)  true?

Accepted Answer

A)   cash will always have more debits than credits
B)   cash will never have a credit balance
C)   cash is increased with a debit
D)   all are true​E) A) and B)
F) None of the above

Question 12

All of the following statements regarding a horizontal analysis are true except:

Accepted Answer

A)   A horizontal analysis is used to compare an item in a current statement with the same item in prior statements.
B)   A horizontal analysis can be performed on a balance sheet and income statement, but not on a statement of cash flows.
C)   If Fees Earned in Year 1 is $125,000 and Fees Earned in Year 2 is $143,750, a horizontal analysis will indicate a 15% increase over this period.
D)   When two statements are compared in horizontal analysis, the earlier statement is used as the base for computing the amount and the percent of change.E) B) and C)
F) None of the above

Question 13

Accounts payable are accounts that you expect will be paid to you.

Accepted Answer

A) True 
 B)False

Question 14

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) None of the above
F) A) and C)

Question 15

Office supplies purchased by Janer's Cleaning Service on account were returned. The office supplies had not yet been paid for. Which of the following entries for Janer's Cleaning Service records this transaction?

Accepted Answer

A)   Cash, debit; Office Supplies, credit
B)   Office Supplies, debit; Accounts Receivable, credit
C)   Accounts Payable, debit; Office Supplies, credit
D)   Office Supplies, debit; Accounts Payable, creditE) B) and D)
F) A) and C)

Question 16

Which of the following accounts would be increased with a credit?

Accepted Answer

A)   Land; Accounts Payable; Dividends
B)   Accounts Payable; Unearned Revenue; Common Stock
C)   Dividends; Accounts Receivable; Unearned Revenue
D)   Cash; Accounts Receivable; Common StockE) B) and C)
F) None of the above

Question 17

Organize the following accounts into the usual sequence of a chart of accounts.

Miscellaneous Expense
Accounts Payable
Accounts Receivable
Cash
Common Stock
Fees Earned
Prepaid Rent
Salaries Expense
Unearned Revenue
Dividends

Accepted Answer

Cash
Accounts Receivable
Prepa...

Question 18

The chart of accounts for the Miguel Company includes the following:  
 Page 3 of the journal contains the following transaction:
  
-What is the posting reference that will be found in the prepaid insurance account?

Accepted Answer

A)   11
B)   15
C)   3
D)   13E) C) and D)
F) A) and D)

Question 19

On November 10, JumpStart Co. provides $2,900 in services to clients. At the time of service, the clients paid $600 in cash and put the balance on account.
(a) Journalize this event.
​
(b) On November 20, JumpStart Co. clients paid an additional $900 on their accounts due. Journalize this event.
​
(c) Calculate the accounts receivable balance on November 30.

Accepted Answer

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Question 20

Of the following, which is an internal report that will determine if the total of the debit balances equal the total of the credit balances in the ledger?

Accepted Answer

A)   chart of accounts
B)   income statement
C)   trial balance
D)   horizontal analysisE) A) and D)
F) A) and C)

Exam 2: Double-Entry Accounting

Richardson Company has a condensed income statement as shown. Using horizontal analysis, calculate the amount and percent change for sales. Round percentages to one decimal place.

Correct Answer
verified

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?

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

Which statement(s) concerning cash is (are) true?

Correct Answer
verified

For a month's transactions for a typical medium-sized business, the accounts payable account is likely to have only credit entries.

Correct Answer
verified

Which of the following balances is always due to an error?

Correct Answer
verified

Organize the following accounts into the usual sequence of a chart of accounts. Miscellaneous Expense Accounts Payable Accounts Receivable Cash Common Stock Fees Earned Prepaid Rent Salaries Expense Unearned Revenue Dividends

Correct Answer
verified
Cash
Accounts Receivable
Prepa...
View Answer

Which group of accounts is composed of only assets?

Correct Answer
verified

Which of the following accounts would be increased with a credit?

Correct Answer
verified

The chart of accounts for the Miguel Company includes the following: Page 3 of the journal contains the following transaction: -What is the posting reference that will be found in the prepaid insurance account?

Correct Answer
verified

Accounts payable are accounts that you expect will be paid to you.

Correct Answer
verified

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

Correct Answer
verified

Of the following, which is true about assets?

Correct Answer
verified

Correct Answer
verified
_TB2281_00...
View Answer

Liabilities are debts owed by the business entity.

Correct Answer
verified

Of the following, which is an internal report that will determine if the total of the debit balances equal the total of the credit balances in the ledger?

Correct Answer
verified

The chart of accounts for the Miguel Company includes the following: Page 3 of the journal contains the following transaction: -What is the posting reference that will be found in the cash account?

Correct Answer
verified

All of the following statements regarding a horizontal analysis are true except:

Correct Answer
verified

Office supplies purchased by Janer's Cleaning Service on account were returned. The office supplies had not yet been paid for. Which of the following entries for Janer's Cleaning Service records this transaction?

Correct Answer
verified

Which of the following will increase stockholders' equity?

Correct Answer
verified

Exam 2: Double-Entry Accounting

Richardson Company has a condensed income statement as shown. Using horizontal analysis, calculate the amount and percent change for sales. Round percentages to one decimal place.

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?

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

Which statement(s) concerning cash is (are) true?

Correct AnswerverifiedShow Answer

For a month's transactions for a typical medium-sized business, the accounts payable account is likely to have only credit entries.

Correct AnswerverifiedShow Answer

Which of the following balances is always due to an error?

Correct AnswerverifiedShow Answer

Organize the following accounts into the usual sequence of a chart of accounts. Miscellaneous Expense Accounts Payable Accounts Receivable Cash Common Stock Fees Earned Prepaid Rent Salaries Expense Unearned Revenue Dividends

Correct AnswerverifiedCashAccounts ReceivablePrepa...View AnswerShow Answer

Which group of accounts is composed of only assets?

Correct AnswerverifiedShow Answer

Which of the following accounts would be increased with a credit?

Correct AnswerverifiedShow Answer

The chart of accounts for the Miguel Company includes the following: Page 3 of the journal contains the following transaction: -What is the posting reference that will be found in the prepaid insurance account?

Correct AnswerverifiedShow Answer

Accounts payable are accounts that you expect will be paid to you.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Of the following, which is true about assets?

Correct AnswerverifiedShow Answer

Correct Answerverified_TB2281_00...View AnswerShow Answer

Liabilities are debts owed by the business entity.

Correct AnswerverifiedShow Answer

Of the following, which is an internal report that will determine if the total of the debit balances equal the total of the credit balances in the ledger?

Correct AnswerverifiedShow Answer

The chart of accounts for the Miguel Company includes the following: Page 3 of the journal contains the following transaction: -What is the posting reference that will be found in the cash account?

Correct AnswerverifiedShow Answer

All of the following statements regarding a horizontal analysis are true except:

Correct AnswerverifiedShow Answer

Office supplies purchased by Janer's Cleaning Service on account were returned. The office supplies had not yet been paid for. Which of the following entries for Janer's Cleaning Service records this transaction?

Correct AnswerverifiedShow Answer

Which of the following will increase stockholders' equity?

Correct AnswerverifiedShow Answer

Correct Answer
verified

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

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified
Cash
Accounts Receivable
Prepa...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
_TB2281_00...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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