Question 1

The classification and normal balance of the accounts payable account are

Accepted Answer

A)   asset, credit balance
B)   liability, credit balance
C)   owner's equity, credit balance
D)   revenue, credit balanceE) A) and C)
F) B) and C)

Question 2

Which of the following entries records the withdrawal of cash by Sally Anderson, owner of a proprietorship, for personal use?

Accepted Answer

A)   debit Sally Anderson, Capital; credit Cash
B)   debit Sally Anderson, Drawing; credit Cash
C)   debit Salaries Expense; credit Cash
D)   debit Salaries Expense; credit Salaries PayableE) None of the above
F) A) and C)

Question 3

A client has a massage and asks the company bookkeeper to mail her the bill. The bookkeeper should make which entry to record the invoice?

Accepted Answer

A)   no entry until the cash is received
B)   Fees Earned, debit; Accounts Receivable, credit
C)   Cash, debit; Fees Earned, credit
D)   Accounts Receivable, debit; Fees Earned, creditE) A) and B)
F) A) and C)

Question 4

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account.
-John Smith, Capital

Accepted Answer

A)  Credit side
B)  Debit sideC) A) and B)
D) undefined

Question 5

On December 1, JumpStart provides $2,800 in services to clients.
(a) Journalize this event as if the clients had paid cash at the time the services were rendered.​
(b) Journalize this event as if the clients had placed this on account.​
(c) Assume that the clients paid $1,200 of the amount on account on December 30. Journalize this transaction.

Accepted Answer

The answer of On December 1, JumpStart provides $2,800 in...

Question 6

Which of the following errors will cause the trial balance totals to be unequal?

Accepted Answer

A)   posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted
B)   failure to record a transaction or to post a transaction
C)   recording the same transaction more than once
D)   recording the same erroneous amount for both the debit and the credit parts of a transactionE) B) and D)
F) A) and C)

Question 7

Lewis Company has a condensed income statement as shown below.​  RequiredPrepare a horizontal analysis of Lewis Company's income statements. Comment on the trends, both favorable and unfavorable.

Accepted Answer

​ <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> While the trend in sales re...

Question 8

The normal balance of the drawing account is a debit.

Accepted Answer

A) True 
 B)False

Question 9

The process of initially recording a business transaction is called

Accepted Answer

A)   closing
B)   posting
C)   journalizing
D)   balancingE) None of the above
F) A) and C)

Question 10

Liabilities are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 capital.
D)   Credits increase both assets and liabilities.E) B) and C)
F) None of the above

Question 13

The gross increases in owner's equity attributable to business activities are called

Accepted Answer

A)   assets
B)   liabilities
C)   revenues
D)   expensesE) A) and D)
F) All of the above

Question 14

A debit is abbreviated as Db and a credit is abbreviated as Cr.

Accepted Answer

A) True 
 B)False

Question 15

In which of the following types of accounts are decreases recorded by credits?

Accepted Answer

A)   liabilities
B)   owner's equity
C)   assets
D)   revenuesE) A) and B)
F) B) and C)

Question 16

Normal account balances are on the increase side of the accounts.

Accepted Answer

A) True 
 B)False

Question 17

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 2, 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 9. If the result is evenly divided, then this type of error is likely.E) A) and C)
F) None of the above

Question 18

A credit balance in which of the following accounts would likely indicate an error?

Accepted Answer

A)   Fees Earned
B)   Salary Expense
C)   Janet James, Capital
D)   Accounts PayableE) B) and C)
F) A) and B)

Question 19

A transaction that is recorded in the journal is called a journal entry.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following situations increases owner's equity?

Accepted Answer

A)   Supplies are purchased on account.
B)   Services are provided on account.
C)   Cash is received from customers on account.
D)   Utility bill will be paid next month.E) A) and D)
F) A) and C)

Exam 2: Analyzing Transactions

A transaction that is recorded in the journal is called a journal entry.

Correct Answer
verified

The classification and normal balance of the accounts payable account are

Correct Answer
verified

The gross increases in owner's equity attributable to business activities are called

Correct Answer
verified

The normal balance of the drawing account is a debit.

Correct Answer
verified

In which of the following types of accounts are decreases recorded by credits?

Correct Answer
verified

Correct Answer
verified

A credit balance in which of the following accounts would likely indicate an error?

Correct Answer
verified

Normal account balances are on the increase side of the accounts.

Correct Answer
verified

Lewis Company has a condensed income statement as shown below. RequiredPrepare a horizontal analysis of Lewis Company's income statements. Comment on the trends, both favorable and unfavorable.

Correct Answer
verified
While the trend in sales re...
View Answer

Liabilities are increased with debits and decreased with credits.

Correct Answer
verified

A debit is abbreviated as Db and a credit is abbreviated as Cr.

Correct Answer
verified

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

Correct Answer
verified

Which of the following situations increases owner's equity?

Correct Answer
verified

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

Correct Answer
verified

Which of the following errors will cause the trial balance totals to be unequal?

Correct Answer
verified

A client has a massage and asks the company bookkeeper to mail her the bill. The bookkeeper should make which entry to record the invoice?

Correct Answer
verified

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account. -John Smith, Capital

Correct Answer
verified

Which of the following entries records the withdrawal of cash by Sally Anderson, owner of a proprietorship, for personal use?

Correct Answer
verified

The process of initially recording a business transaction is called

Correct Answer
verified

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 Answer
verified

Exam 2: Analyzing Transactions

A transaction that is recorded in the journal is called a journal entry.

Correct AnswerverifiedShow Answer

The classification and normal balance of the accounts payable account are

Correct AnswerverifiedShow Answer

The gross increases in owner's equity attributable to business activities are called

Correct AnswerverifiedShow Answer

The normal balance of the drawing account is a debit.

Correct AnswerverifiedShow Answer

In which of the following types of accounts are decreases recorded by credits?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A credit balance in which of the following accounts would likely indicate an error?

Correct AnswerverifiedShow Answer

Normal account balances are on the increase side of the accounts.

Correct AnswerverifiedShow Answer

Lewis Company has a condensed income statement as shown below.​ RequiredPrepare a horizontal analysis of Lewis Company's income statements. Comment on the trends, both favorable and unfavorable.

Correct Answerverified​ While the trend in sales re...View AnswerShow Answer

Liabilities are increased with debits and decreased with credits.

Correct AnswerverifiedShow Answer

A debit is abbreviated as Db and a credit is abbreviated as Cr.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following situations increases owner's equity?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following errors will cause the trial balance totals to be unequal?

Correct AnswerverifiedShow Answer

A client has a massage and asks the company bookkeeper to mail her the bill. The bookkeeper should make which entry to record the invoice?

Correct AnswerverifiedShow Answer

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account. -John Smith, Capital

Correct AnswerverifiedShow Answer

Which of the following entries records the withdrawal of cash by Sally Anderson, owner of a proprietorship, for personal use?

Correct AnswerverifiedShow Answer

The process of initially recording a business transaction is called

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 confirm this suspicion?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Lewis Company has a condensed income statement as shown below. RequiredPrepare a horizontal analysis of Lewis Company's income statements. Comment on the trends, both favorable and unfavorable.

Correct Answer
verified
While the trend in sales re...
View Answer

Correct Answer
verified

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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