Question 1

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) None of the above

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

On October 10,Nickle Company purchased supplies for $1,800 on account.On October 25,Nickle 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,Nickle Company purchased supplies for...

Question 4

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 5

On January 31,the cash account balance was $96,750.During January,cash receipts totaled $305,000 and cash payments totaled $375,880.Determine the cash balance on January 1.

Accepted Answer

The answer of On January 31,the cash account balance was...

Question 6

In which order are the accounts listed in the chart of accounts?

Accepted Answer

A)  assets, expenses, liabilities, owner's equity, revenues
B)  owner's equity, assets, liabilities, revenues, expenses
C)  assets, liabilities, owner's equity, revenues, expenses
D)  assets, liabilities, revenues, expenses, owner's equityE) B) and C)
F) None of the above

Question 7

Journalize the following five transactions for Nexium & Associates,Inc.Omit explanations.

Accepted Answer

The answer of Journalize the following five transactions for Nexium...

Question 8

Which of the following statements regarding a horizontal analysis is false?

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

Question 9

Match each of the following accounts with its proper account group from the groups listed below.
​
-Prepaid Insurance

Accepted Answer

A)  Assets
B)  Liabilities
C)  Owner's Equity
D)  Revenue
E)  ExpensesF) None of the above
G) C) and D)

Question 10

Office supplies were sold by Janer's Cleaning Service at cost to another repair shop,with cash received.Which of the following entries for Janer's Cleaning Service records this transaction?

Accepted Answer

A)  Office Supplies, debit; Cash, credit
B)  Office Supplies, debit; Accounts Payable, credit
C)  Cash, debit; Office Supplies, credit
D)  Accounts Payable, debit; Office Supplies, creditE) A) and C)
F) All of the above C

Question 11

Below is the unadjusted trial balance for Dawson Designs Co.Required
(1)Identify the errors in the trial balance.All accounts have normal balances.
(2)Prepare a corrected trial balance.

Accepted Answer

(1)a.The Debit column is added incorrectly; the sum is actually $289,780.b.The trial balance should be dated January 31,rather than "For theMonth of January"c.The Accounts Receivable balance should be in the Debit column.d.The Accounts Payable balance should be in the Credit column.e.The Tim Dawson,Drawing balance should be in the Debit column.f.The Miscellaneous Expense balance should be in the Debit column.
(2)

Question 12

Owner's equity will be reduced by the amount in the drawing account.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following entries records the collection of cash from cash customers?

Accepted Answer

A)  Fees Earned, debit; Cash, credit
B)  Fees Earned, debit; Accounts Receivable, credit
C)  Cash, debit; Fees Earned, credit
D)  Accounts Receivable, debit; Fees Earned, creditE) All of the above
F) A) and C)

Question 14

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 financial statement items
D)  are only used by large entities with many transactionsE) C) and D)
F) A) and D)

Question 15

Which of the following is not a correct rule of debits and credits?

Accepted Answer

A)  Assets, expenses, and withdrawals are increased by debits.
B)  Assets are decreased by credits and have a normal debit balance.
C)  Liabilities, revenues, and owner's equity are increased by credits.
D)  The normal balance for revenues and expenses is a credit.E) All of the above
F) None of the above

Question 16

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

Accepted Answer

A)  assets, liabilities, owner's equity
B)  assets, drawing, expenses
C)  assets, revenues, expenses
D)  assets, liabilities, revenuesE) All of the above
F) A) and B)

Question 17

An account in its simplest form has three parts to it: a title,an increase side,and a decrease side.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is not true about liabilities?

Accepted Answer

A)  Liabilities are debts owed to outsiders.
B)  Account titles of liabilities often include the term "payable."
C)  Cash received before a service is performed creates a liability.
D)  Liabilities do not include wages owed to employees of the company.E) A) and B)
F) A) and C)

Question 19

Journalize the entries to correct the following errors:

Accepted Answer

The answer of Journalize the entries to correct the following...

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

The chart of accounts is designed to

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

Correct Answer
verified
True

On October 10,Nickle Company purchased supplies for $1,800 on account.On October 25,Nickle 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
verified

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 Answer
verified

On January 31,the cash account balance was $96,750.During January,cash receipts totaled $305,000 and cash payments totaled $375,880.Determine the cash balance on January 1.

Correct Answer
verified

In which order are the accounts listed in the chart of accounts?

Correct Answer
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Journalize the following five transactions for Nexium & Associates,Inc.Omit explanations.

Correct Answer
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Which of the following statements regarding a horizontal analysis is false?

Correct Answer
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Match each of the following accounts with its proper account group from the groups listed below. -Prepaid Insurance

Correct Answer
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Office supplies were sold by Janer's Cleaning Service at cost to another repair shop,with cash received.Which of the following entries for Janer's Cleaning Service records this transaction?

Correct Answer
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C

Below is the unadjusted trial balance for Dawson Designs Co.Required (1)Identify the errors in the trial balance.All accounts have normal balances. (2)Prepare a corrected trial balance.

Owner's equity will be reduced by the amount in the drawing account.

Correct Answer
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Which of the following entries records the collection of cash from cash customers?

Correct Answer
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Accounts

Correct Answer
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Which of the following is not a correct rule of debits and credits?

Correct Answer
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Which of the following groups of accounts is increased with a debit?

Correct Answer
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An account in its simplest form has three parts to it: a title,an increase side,and a decrease side.

Correct Answer
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Which of the following statements is not true about liabilities?

Correct Answer
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Journalize the entries to correct the following errors:

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

Correct Answer
verified

Exam 2: Analyzing Transactions

The chart of accounts is designed to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

On October 10,Nickle Company purchased supplies for $1,800 on account.On October 25,Nickle 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

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 AnswerverifiedShow Answer

On January 31,the cash account balance was $96,750.During January,cash receipts totaled $305,000 and cash payments totaled $375,880.Determine the cash balance on January 1.

Correct AnswerverifiedShow Answer

In which order are the accounts listed in the chart of accounts?

Correct AnswerverifiedShow Answer

Journalize the following five transactions for Nexium & Associates,Inc.Omit explanations.

Correct AnswerverifiedShow Answer

Which of the following statements regarding a horizontal analysis is false?

Correct AnswerverifiedShow Answer

Match each of the following accounts with its proper account group from the groups listed below. ​ -Prepaid Insurance

Correct AnswerverifiedShow Answer

Office supplies were sold by Janer's Cleaning Service at cost to another repair shop,with cash received.Which of the following entries for Janer's Cleaning Service records this transaction?

Correct AnswerverifiedC

Below is the unadjusted trial balance for Dawson Designs Co.Required (1)Identify the errors in the trial balance.All accounts have normal balances. (2)Prepare a corrected trial balance.

Owner's equity will be reduced by the amount in the drawing account.

Correct AnswerverifiedShow Answer

Which of the following entries records the collection of cash from cash customers?

Correct AnswerverifiedShow Answer

Accounts

Correct AnswerverifiedShow Answer

Which of the following is not a correct rule of debits and credits?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An account in its simplest form has three parts to it: a title,an increase side,and a decrease side.

Correct AnswerverifiedShow Answer

Which of the following statements is not true about liabilities?

Correct AnswerverifiedShow Answer

Journalize the entries to correct the following errors:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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True

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Match each of the following accounts with its proper account group from the groups listed below. -Prepaid Insurance

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C

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