Question 1

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 2

Which of the following groups of accounts are increased with a debit?

Accepted Answer

A)   assets,liabilities,stockholders' equity
B)   assets,dividends,expenses
C)   assets,revenues,expenses
D)   assets,liabilities,revenuesE) B) and C)
F) A) and D)

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

Which of the following entries records the payment of dividends?

Accepted Answer

A)   debit Common Stock; credit Cash
B)   debit Dividends; credit Cash
C)   debit Salaries Expense; credit Cash
D)   debit Salaries Expense; credit Salaries PayableE) B) and D)
F) C) and D)

Question 5

On October 17,Nikle Company purchased a building and a plot of land for $750,000.The building was valued at $500,000 while the land carried a value of $250,000.Nikle paid $300,000 down in cash and signed a note payable for the balance.Provide the journal entry for this transaction.

Accepted Answer

The answer of On October 17,Nikle Company purchased a building...

Question 6

The post reference notation used in the ledger is the account number.

Accepted Answer

A) True 
 B)False

Question 7

The erroneous arrangement of digits,such as writing $45 as $54,is called a slide.

Accepted Answer

A) True 
 B)False

Question 8

A chart of accounts is

Accepted Answer

A)   the same as a balance sheet
B)   usually a listing of accounts in alphabetical order
C)   usually a listing of accounts in financial statement order
D)   used in place of a ledgerE) A) and D)
F) A) and C)

Question 9

For each of the following errors,considered individually,indicate whether the error would cause the trial balance totals to be unequal.If the error would cause the trial balance totals to be unequal,indicate whether the debit or credit total is higher and by how much.
​

Accepted Answer

The answer of For each of the following errors,considered individually,indicate...

Question 10

Expenses can result from

Accepted Answer

A)   selling stock
B)   consuming services
C)   using up liabilities
D)   paying creditors on accountE) None of the above
F) B) and C)

Question 11

The classification and normal balance of the dividends account is

Accepted Answer

A)   an expense with a credit balance
B)   an expense with a debit balance
C)   a liability with a credit balance
D)   stockholders' equity with a debit balanceE) A) and D)
F) None of the above

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

In the chart of accounts,each account number has two digits.The first digit indicates the major account group to which the account belongs.Which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?

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-Expenses,5-Common StockE) B) and D)
F) All of the above

Question 14

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Accounts

Accepted Answer

A)   do not reflect money amounts
B)   are not used by entities that manufacture products
C)   are records of increases and decreases in individual accounting equation elements
D)   are only used by large entities with many transactionsE) B) and C)
F) A) and B)

Question 17

Prepare a trial balance,listing the accounts in their proper order.

Accepted Answer

The answer of Prepare a trial balance,listing the accounts in...

Question 18

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

Question 19

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) None of the above

Question 20

Expense accounts are increased by credits.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

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

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A chart of accounts is

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The post reference notation used in the ledger is the account number.

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For each of the following errors,considered individually,indicate whether the error would cause the trial balance totals to be unequal.If the error would cause the trial balance totals to be unequal,indicate whether the debit or credit total is higher and by how much. ​

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A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

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On October 17,Nikle Company purchased a building and a plot of land for $750,000.The building was valued at $500,000 while the land carried a value of $250,000.Nikle paid $300,000 down in cash and signed a note payable for the balance.Provide the journal entry for this transaction.

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Expenses can result from

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Expense accounts are increased by credits.

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

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

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Which of the following groups of accounts are increased with a debit?

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The classification and normal balance of the dividends account is

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

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Which of the following entries records the payment of dividends?

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

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Accounts

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In the chart of accounts,each account number has two digits.The first digit indicates the major account group to which the account belongs.Which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?

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The erroneous arrangement of digits,such as writing $45 as $54,is called a slide.

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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.

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Prepare a trial balance,listing the accounts in their proper order.

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For each of the following errors,considered individually,indicate whether the error would cause the trial balance totals to be unequal.If the error would cause the trial balance totals to be unequal,indicate whether the debit or credit total is higher and by how much.

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