Question 1

A dividends account records amounts paid to stockholders.

Accepted Answer

A) True 
 B)False

Question 2

Expense accounts are increased by credits.

Accepted Answer

A) True 
 B)False

Question 3

McMann Company has a condensed income statement as shown::  Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

Accepted Answer

A)   $32,500, 19.6%
B)   $18,000, 10.9%
C)   $35,000, 17.7%
D)   $17,000, 9.4%E) A) and C)
F) None of the above

Question 4

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) A) and B)
F) A) and C)

Question 5

Expenses use up assets or consume services in the process of generating revenues.

Accepted Answer

A) True 
 B)False

Question 6

Several transactions are listed below, with the accounting equation stated to the right side of each. Use the following identification codes to indicate the effects of each transaction on the accounting equation. Write your answers in the space provided under the accounting equation. You need an identification code for each element of the accounting equation. An example is given before the first transaction.

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 reve...

Question 7

Which one of the statements below is not a purpose for the journal?

Accepted Answer

A)   to show increases and decreases in accounts
B)   to show a chronological order by date
C)   to show a complete transaction in one place
D)   to help posting transactions to ledgerE) None of the above
F) A) and C)

Question 8

Journal entries can have more than two accounts as long as the debits equal the credits.

Accepted Answer

A) True 
 B)False

Question 9

The Post. Ref. columns are used to trace transactions from the journal to the accounts. What will be entered in the Post. Ref. column of (a)  the journal and (b)  the account?

Accepted Answer

A)   (a)  the amount of the debit or credit (b)  the journal page number
B)   (a)  the journal page number (b)  the date of the transaction
C)   (a)  the journal page number, (b)  the account number
D)   (a)  the account number, (b)  the journal page numberE) A) and B)
F) C) and D)

Question 10

Office supplies purchased by Ari's Alarm Service on account were returned. Which of the following entries for Ari's Alarm Service records this transaction?

Accepted Answer

A)   Cash, debit; Office Supplies, credit
B)   Office Supplies, debit; Accounts Receivable, credit
C)   Accounts Payable, debit; Office Supplies, credit
D)   Office Supplies, debit; Accounts Payable, creditE) A) and B)
F) A) and C)

Question 11

Which of the following is not considered to be a liability?

Accepted Answer

A)   Wages Payable
B)   Accounts Receivable
C)   Unearned Revenues
D)   Accounts PayableE) B) and C)
F) A) and D)

Question 12

A chart of accounts is a listing of accounts that make up the journal.

Accepted Answer

A) True 
 B)False

Question 13

The post reference notation used in the journal is the page number.

Accepted Answer

A) True 
 B)False

Question 14

Net income will result when

Accepted Answer

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

Question 15

Which of the following stockholder equity accounts follow the same debit and credit rules as liabilities?

Accepted Answer

A)   Capital Stock only
B)   Dividends only
C)   Retained Earnings and Capital Stock
D)   Retained Earnings, Capital Stock, and DividendsE) B) and D)
F) None of the above

Question 16

A trial balance determines the accuracy of the numbers.

Accepted Answer

A) True 
 B)False

Question 17

Below is the unadjusted trial balance for Dawson Designs at December 31, 2011 - the end of its first year in business.
(1) Identify the errors in the following trial balance. All accounts have normal balances.
(2) Prepare a corrected trial balance.

Accepted Answer

(1)
a. The debit column is added incorre...

Question 18

In which of the following types of accounts are decreases recorded with debits?

Accepted Answer

A)   assets
B)   revenues
C)   expenses
D)   dividendsE) All of the above
F) A) and B)

Question 19

Expenses can result from

Accepted Answer

A)   paying dividends
B)   consuming services
C)   using up liabilities
D)   all of theseE) A) and B)
F) A) and C)

Question 20

The debit side of an account

Accepted Answer

A)   depends on whether the account is an asset, liability or stockholders' equity item
B)   can be either side of the account depending on how the accountant set up the system
C)   is the right side of the account
D)   is the left side of the accountE) None of the above
F) All of the above

Exam 2: Analyzing Transactions

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

A chart of accounts is a listing of accounts that make up the journal.

Correct Answer
verified

Expenses use up assets or consume services in the process of generating revenues.

Correct Answer
verified

Office supplies purchased by Ari's Alarm Service on account were returned. Which of the following entries for Ari's Alarm Service records this transaction?

Correct Answer
verified

Journal entries can have more than two accounts as long as the debits equal the credits.

Correct Answer
verified

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 Answer
verified

Expenses can result from

Correct Answer
verified

Which of the following is not considered to be a liability?

Correct Answer
verified

The debit side of an account

Correct Answer
verified

The Post. Ref. columns are used to trace transactions from the journal to the accounts. What will be entered in the Post. Ref. column of (a) the journal and (b) the account?

Correct Answer
verified

Expense accounts are increased by credits.

Correct Answer
verified

The post reference notation used in the journal is the page number.

Correct Answer
verified

Which of the following stockholder equity accounts follow the same debit and credit rules as liabilities?

Correct Answer
verified

Net income will result when

Correct Answer
verified

Below is the unadjusted trial balance for Dawson Designs at December 31, 2011 - the end of its first year in business. (1) Identify the errors in the following trial balance. All accounts have normal balances. (2) Prepare a corrected trial balance.

Correct Answer
verified
(1)
a. The debit column is added incorre...
View Answer

McMann Company has a condensed income statement as shown:: Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

Correct Answer
verified

A trial balance determines the accuracy of the numbers.

Correct Answer
verified

A dividends account records amounts paid to stockholders.

Correct Answer
verified

Which one of the statements below is not a purpose for the journal?

Correct Answer
verified

In which of the following types of accounts are decreases recorded with debits?

Correct Answer
verified

Exam 2: Analyzing Transactions

Correct Answerverified While the trend in sales reve...View AnswerShow Answer

A chart of accounts is a listing of accounts that make up the journal.

Correct AnswerverifiedShow Answer

Expenses use up assets or consume services in the process of generating revenues.

Correct AnswerverifiedShow Answer

Office supplies purchased by Ari's Alarm Service on account were returned. Which of the following entries for Ari's Alarm Service records this transaction?

Correct AnswerverifiedShow Answer

Journal entries can have more than two accounts as long as the debits equal the credits.

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

Expenses can result from

Correct AnswerverifiedShow Answer

Which of the following is not considered to be a liability?

Correct AnswerverifiedShow Answer

The debit side of an account

Correct AnswerverifiedShow Answer

The Post. Ref. columns are used to trace transactions from the journal to the accounts. What will be entered in the Post. Ref. column of (a) the journal and (b) the account?

Correct AnswerverifiedShow Answer

Expense accounts are increased by credits.

Correct AnswerverifiedShow Answer

The post reference notation used in the journal is the page number.

Correct AnswerverifiedShow Answer

Which of the following stockholder equity accounts follow the same debit and credit rules as liabilities?

Correct AnswerverifiedShow Answer

Net income will result when

Correct AnswerverifiedShow Answer

Below is the unadjusted trial balance for Dawson Designs at December 31, 2011 - the end of its first year in business. (1) Identify the errors in the following trial balance. All accounts have normal balances. (2) Prepare a corrected trial balance.

Correct Answerverified(1)a. The debit column is added incorre...View AnswerShow Answer

McMann Company has a condensed income statement as shown:: Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

Correct AnswerverifiedShow Answer

A trial balance determines the accuracy of the numbers.

Correct AnswerverifiedShow Answer

A dividends account records amounts paid to stockholders.

Correct AnswerverifiedShow Answer

Which one of the statements below is not a purpose for the journal?

Correct AnswerverifiedShow Answer

In which of the following types of accounts are decreases recorded with debits?

Correct AnswerverifiedShow Answer

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

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(1)
a. The debit column is added incorre...
View Answer

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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