Question 1

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

Accepted Answer

A) True 
 B)False

Question 2

Calculate the following:

Accepted Answer

The answer of Calculate the following: ...

Question 3

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 salaries expense account?

Accepted Answer

A)   5
B)   11
C)   54
D)   21E) A) and B)
F) A) and D)

Question 4

Liability accounts are increased by debits.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true about T accounts?

Accepted Answer

A)   The left side of a T account is called the debit side.
B)   The left side of a T account is called the credit side.
C)   The right side of a T account is called the debit side.
D)   Transactions are first recorded in T accounts and then posted to the journal.E) B) and C)
F) A) and D)

Question 6

The chart of accounts for the Miguel Company includes the following:  
 Page 3 of the journal contains the following transaction:
  
- 
What posting references will be found in the journal entry?

Accepted Answer

A)   41, 3
B)   3, 11
C)   11, 41
D)   11, 3E) A) and D)
F) None of the above

Question 7

Faso Fabricating, Inc. and Spinoza Fabrication Corp. are in the same industry and are located in the same region of the country. They have condensed income statements as shown.  
 Using horizontal analysis, calculate the percent change for net income for each company. Round percentages to one decimal place.

Accepted Answer

A)   Faso: ?17.2%; Spinoza: ?6.4%
B)   Faso: ?17.2%; Spinoza: 6.4%
C)   Faso: 17.2%; Spinoza: ?6.4%
D)   Faso: 17.2%; Spinoza: 6.4%E) A) and D)
F) None of the above

Question 8

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.

Accepted Answer

A) True 
 B)False

Question 9

A cash payment is recorded in the cash account as

Accepted Answer

A)   neither a debit nor a credit
B)   a credit
C)   a debit
D)   either a debit or a creditE) A) and D)
F) A) and C)

Question 10

A credit to the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 11

Accounts are classified in the ledger

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 D)
F) None of the above

Question 12

On November 30, the company accountant discovers that $550 of a transaction recording the purchase of office supplies was really office equipment. Prepare the journal entry to correct this situation.

Accepted Answer

The answer of On November 30, the company accountant discovers...

Question 13

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

Accepted Answer

A)   liabilities
B)   stockholders' equity
C)   assets
D)   revenuesE) All of the above
F) B) and C)

Question 14

Match between columns
                        Premises:  Common Stock
 Accounts Receivable
 Accounts Payable
 Interest Revenue
 Copyrights

Accepted Answer

The Answer of Credit side and Debit side is...

Question 15

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

Question 16

Consuming goods and services in the process of generating revenues results in expenses.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true regarding normal balances of accounts?

Accepted Answer

A)   ​All accounts have a normal debit balance.
B)   ​The normal balance of all accounts will have either a positive or negative balance.
C)   ​Accounts that have a normal debit balance will only have debit entries, never credit entries.
D)   ​The normal balance is on the increase side of the account.E) A) and B)
F) C) and D)

Question 18

The balance of an account is determined by

Accepted Answer

A)   adding all of the debits to all of the credits
B)   always subtracting the debits from the credits
C)   always subtracting the credits from the debits
D)   adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sumE) A) and B)
F) C) and D)

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

Match between columns
                        Premises:  Balance incorrectly computed.
 Debit or credit posting omitted.
 Wrong amount posted to an account.
 Trial balance column incorrectly added.
 Balance entered on wrong side of account.
 Amount incorrectly entered on trial balance.
 Balance entered in wrong trial balance column or omitted.
 Debit posted as credit, or vice versa.

Accepted Answer

The Answer of Trial balance preparation errors and Account balance is...

Exam 2: Double-Entry Accounting

Consuming goods and services in the process of generating revenues results in expenses.

Correct Answer
verified

A credit to the cash account will increase the account.

Correct Answer
verified

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

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 salaries expense account?

Correct Answer
verified

Which of the following is true about T accounts?

Correct Answer
verified

Correct Answer
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Calculate the following:

Correct Answer
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Several types of errors can be made during the journalizing and posting process. Match the following description with the error.

A cash payment is recorded in the cash account as

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.

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.

Correct Answer
verified

The balance of an account is determined by

Correct Answer
verified

Liability accounts are increased by debits.

Correct Answer
verified

Accounts are classified in the ledger

Correct Answer
verified

On November 30, the company accountant discovers that $550 of a transaction recording the purchase of office supplies was really office equipment. Prepare the journal entry to correct this situation.

Correct Answer
verified

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

Correct Answer
verified

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

Correct Answer
verified

Which of the following is true regarding normal balances of accounts?

Correct Answer
verified

The chart of accounts for the Miguel Company includes the following: Page 3 of the journal contains the following transaction: - What posting references will be found in the journal entry?

Correct Answer
verified

The classification and normal balance of the dividends account is

Correct Answer
verified

Exam 2: Double-Entry Accounting

Consuming goods and services in the process of generating revenues results in expenses.

Correct AnswerverifiedShow Answer

A credit to the cash account will increase the account.

Correct AnswerverifiedShow Answer

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

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 salaries expense account?

Correct AnswerverifiedShow Answer

Which of the following is true about T accounts?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Calculate the following:

Correct AnswerverifiedShow Answer

Several types of errors can be made during the journalizing and posting process. Match the following description with the error.

A cash payment is recorded in the cash account as

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.

If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors were made.

Correct AnswerverifiedShow Answer

The balance of an account is determined by

Correct AnswerverifiedShow Answer

Liability accounts are increased by debits.

Correct AnswerverifiedShow Answer

Accounts are classified in the ledger

Correct AnswerverifiedShow Answer

On November 30, the company accountant discovers that $550 of a transaction recording the purchase of office supplies was really office equipment. Prepare the journal entry to correct this situation.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

Correct AnswerverifiedShow Answer

Which of the following is true regarding normal balances of accounts?

Correct AnswerverifiedShow Answer

The chart of accounts for the Miguel Company includes the following: Page 3 of the journal contains the following transaction: - What posting references will be found in the journal entry?

Correct AnswerverifiedShow Answer

The classification and normal balance of the dividends account is

Correct AnswerverifiedShow Answer

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