Question 1

Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the remainder to be paid later. The correct entry would be

Accepted Answer

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

Question 2

McNally Industries 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)   $32,500, 19.6%
B)   ($32,500) , (19.6%) 
C)   $32,500, 16.4%
D)   ($32,500) , (16.4%) E) B) and C)
F) A) and D)

Question 3

Analyze the effect of the following transactions on the accounting equation.  ​
Some of the possible effects of a transaction on the accounting equation are listed below:  ​
Put the appropriate letter next to each transaction.

Accepted Answer

The answer of Analyze the effect of the following transactions...

Question 4

The ____ is where a transaction can first be found in the accounting records.

Accepted Answer

A)   chart of accounts
B)   income statement
C)   balance sheet
D)   journalE) B) and C)
F) All of the above

Question 5

Journalize the following selected transactions for January. Explanations may be omitted.  ​

Accepted Answer

The answer of Journalize the following selected transactions for January....

Question 6

A credit may signify a

Accepted Answer

A)   decrease in assets
B)   decrease in liabilities
C)   decrease in common stock
D)   decrease in revenueE) All of the above
F) A) and B)

Question 7

The cash account will always be debited.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a useful step in finding errors on the trial balance?

Accepted Answer

A)   Determine the difference between debits and credits and look for the amount.
B)   Determine the difference between debits and credits and change any account to make the trial balance correct.
C)   Determine the difference between debits and credits, divide the amount by 2, and look for the amount.
D)   Determine the difference between debits and credits, divide the amount by 9, and if it divides evenly, look for a transposition or slide error.E) A) and B)
F) A) and C)

Question 9

The chart of accounts should be the same for each business.

Accepted Answer

A) True 
 B)False

Question 10

Assets are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following describes the classification and normal balance of the fees earned account?

Accepted Answer

A)   asset, credit
B)   liability, credit
C)   stockholders' equity, debit
D)   revenue, creditE) B) and D)
F) A) and C)

Question 12

On October 10, Nikle Company purchased supplies for $1,800 on account. On October 25, Nikle Company paid the invoice.
(a) Provide the journal entry for the purchase on account.​
(b) Provide the journal entry for the payment of the invoice.

Accepted Answer

The answer of On October 10, Nikle Company purchased supplies...

Question 13

Net income will result when

Accepted Answer

A)   revenues (credits)  > expenses (debits) 
B)   revenues (debits)  > expenses (credits) 
C)   expenses (credits)  = revenues (debits) 
D)   revenues (credits)  = expenses (debits) E) B) and C)
F) A) and C)

Question 14

Which of the following types of accounts have a normal credit balance?

Accepted Answer

A)   assets and liabilities
B)   liabilities and expenses
C)   revenues and common stock
D)   common stock and dividendsE) B) and D)
F) A) and B)

Question 15

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

Accepted Answer

A) True 
 B)False  False

Question 16

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  False

Question 17

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) All of the above

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Question 20

The classification and normal balance of the accounts payable account is

Accepted Answer

A)   an asset with a credit balance
B)   a liability with a credit balance
C)   stockholders' equity with a credit balance
D)   revenue with a credit balanceE) C) and D)
F) A) and B)

Exam 2: Double-Entry Accounting

Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the remainder to be paid later. The correct entry would be

Correct AnswerverifiedShow Answer

McNally Industries 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

Analyze the effect of the following transactions on the accounting equation. ​ Some of the possible effects of a transaction on the accounting equation are listed below: ​ Put the appropriate letter next to each transaction.

Correct AnswerverifiedShow Answer

The ____ is where a transaction can first be found in the accounting records.

Correct AnswerverifiedShow Answer

Journalize the following selected transactions for January. Explanations may be omitted. ​

Correct AnswerverifiedShow Answer

A credit may signify a

Correct AnswerverifiedShow Answer

The cash account will always be debited.

Correct AnswerverifiedShow Answer

Which of the following is not a useful step in finding errors on the trial balance?

Correct AnswerverifiedShow Answer

The chart of accounts should be the same for each business.

Correct AnswerverifiedShow Answer

Assets are increased with debits and decreased with credits.

Correct AnswerverifiedShow Answer

Which of the following describes the classification and normal balance of the fees earned account?

Correct AnswerverifiedShow Answer

On October 10, Nikle Company purchased supplies for $1,800 on account. On October 25, Nikle Company paid the invoice. (a) Provide the journal entry for the purchase on account.​ (b) Provide the journal entry for the payment of the invoice.

Correct AnswerverifiedShow Answer

Net income will result when

Correct AnswerverifiedShow Answer

Which of the following types of accounts have a normal credit balance?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFalse

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

Correct AnswerverifiedFalse

The chart of accounts is designed to

Correct AnswerverifiedShow Answer

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

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 AnswerverifiedB

The classification and normal balance of the accounts payable account is

Correct AnswerverifiedShow Answer

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Analyze the effect of the following transactions on the accounting equation. Some of the possible effects of a transaction on the accounting equation are listed below: Put the appropriate letter next to each transaction.

Correct Answer
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Journalize the following selected transactions for January. Explanations may be omitted.

Correct Answer
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On October 10, Nikle Company purchased supplies for $1,800 on account. On October 25, Nikle Company paid the invoice. (a) Provide the journal entry for the purchase on account. (b) Provide the journal entry for the payment of the invoice.

Correct Answer
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Correct Answer
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False

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False

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B

Correct Answer
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