Question 1

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Amount incorrectly entered on trial balance.
A)Trial balance preparation errors
B)Account balance errors
C)Posting errors

Accepted Answer

The answer of Several types of errors can be made...

Question 2

The process of recording a transaction in the journal is called

Accepted Answer

A)  balancing
B)  journalizing
C)  posting
D)  summarizingE) B) and C)
F) A) and C)

Question 3

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 trueE) None of the above
F) A) and B)

Question 4

In a basic 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) A) and B)
F) A) and C)

Question 5

A dividends account represents the amount of earnings paid to the stockholders.

Accepted Answer

A) True 
 B)False

Question 6

The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts Receivable for $500. The correcting entry would include a:

Accepted Answer

A)  credit to Accounts Receivable for $500
B)  credit to Accounts Receivable for $1,000
C)  credit to Accounts Payable for $500
D)  credit to Accounts Payable for $1,000E) C) and D)
F) A) and B)

Question 7

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 8

Which of the following groups of accounts increase with a credit?

Accepted Answer

A)  common stock, revenues, expenses
B)  assets, common stock, revenues
C)  liabilities, common stock, revenues
D)  none of theseE) All of the above
F) A) and C)

Question 9

On October 1, the accounts receivable account balance was $208,400. During October, $298,500 was collected from customers on account. Assuming the October 31 balance was $125,300, determine the fees billed to customers on account during October.

Accepted Answer

$208,400 + ??? − $298,500 = $1...

Question 10

The increases in stockholders' equity attributable to selling services or products to customers are called

Accepted Answer

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

Question 11

Liabilities are debts owed by the business entity.

Accepted Answer

A) True 
 B)False

Question 12

Accounts in the ledger are usually maintained in alphabetical order.

Accepted Answer

A) True 
 B)False

Question 13

The chart of accounts is designed to

Accepted Answer

A)  alphabetize the accounts to make reading easier for financial statement users
B)  organize accounts in order of dollar amount to simplify the accounting information for users
C)  summarize the transactions and determine ending account balances
D)  meet the information needs of a company's managers and other users of its financial statementsE) A) and B)
F) C) and D)

Question 14

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Balance entered on wrong side of account.
A)Trial balance preparation errors
B)Account balance errors
C)Posting errors

Accepted Answer

The answer of Several types of errors can be made...

Question 15

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) B) and D)
F) All of the above

Question 16

The increase side of an account is also the side of the normal balance.

Accepted Answer

A) True 
 B)False

Question 17

The chart of accounts for the Corning Company includes the following:  Page 3 of the journal contains the following entry:  Use the above information to answer the questions that follow.​
-What is the posting reference that will be found in the prepaid insurance account?

Accepted Answer

A)  11
B)  15
C)  3
D)  13E) None of the above
F) All of the above

Question 18

That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a(n) :

Accepted Answer

A)  chart of accounts
B)  trial balance
C)  income statement
D)  balance sheetE) None of the above
F) All of the above

Question 19

The payment for the monthly rent will require which of the following entries?

Accepted Answer

A)  debit Cash and debit Rent Expense
B)  credit Cash and credit Rent Expense
C)  debit Rent Expense and credit Cash
D)  credit Rent Expense and debit CashE) B) and C)
F) All of the above

Question 20

Transactions are listed in the journal chronologically.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

Accounts in the ledger are usually maintained in alphabetical order.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The process of recording a transaction in the journal is called

Correct AnswerverifiedShow Answer

The chart of accounts is designed to

Correct AnswerverifiedShow Answer

That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a(n) :

Correct AnswerverifiedShow Answer

The chart of accounts for the Corning Company includes the following: Page 3 of the journal contains the following entry: Use the above information to answer the questions that follow.​ -What is the posting reference that will be found in the prepaid insurance account?

Correct AnswerverifiedShow Answer

Transactions are listed in the journal chronologically.

Correct AnswerverifiedShow Answer

A dividends account represents the amount of earnings paid to the stockholders.

Correct AnswerverifiedShow Answer

The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts Receivable for $500. The correcting entry would include a:

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

The increase side of an account is also the side of the normal balance.

Correct AnswerverifiedShow Answer

In a basic 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?

Correct AnswerverifiedShow Answer

Which of the following groups of accounts increase with a credit?

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Which of the following will increase stockholders' equity?

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Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Balance entered on wrong side of account. A)Trial balance preparation errors B)Account balance errors C)Posting errors

Correct AnswerverifiedShow Answer

The payment for the monthly rent will require which of the following entries?

Correct AnswerverifiedShow Answer

On October 1, the accounts receivable account balance was $208,400. During October, $298,500 was collected from customers on account. Assuming the October 31 balance was $125,300, determine the fees billed to customers on account during October.

Correct Answerverified$208,400 + ??? − $298,500 = $1...View AnswerShow Answer

Liabilities are debts owed by the business entity.

Correct AnswerverifiedShow Answer

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Amount incorrectly entered on trial balance. A)Trial balance preparation errors B)Account balance errors C)Posting errors

Correct AnswerverifiedShow Answer

The increases in stockholders' equity attributable to selling services or products to customers are called

Correct AnswerverifiedShow Answer

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The chart of accounts for the Corning Company includes the following: Page 3 of the journal contains the following entry: Use the above information to answer the questions that follow. -What is the posting reference that will be found in the prepaid insurance account?

Correct Answer
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$208,400 + ??? − $298,500 = $1...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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