Question 1

Which are the parts of the T account?

Accepted Answer

A)  title,date,total
B)  date,debit side,credit side
C)  title,debit side,credit side
D)  title,debit side,totalE) A) and B)
F) A) and C)

Question 2

A debit signifies a decrease in

Accepted Answer

A)  assets
B)  expenses
C)  dividends
D)  revenuesE) B) and C)
F) B) and D)

Question 3

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) B) and C)

Question 4

The journal includes both debit and credit accounts for each transaction.

Accepted Answer

A) True 
 B)False

Question 5

A debit balance in which of the following accounts would indicate a likely error?

Accepted Answer

A)  Salaries Expense
B)  Notes Payable
C)  Dividends
D)  SuppliesE) All of the above
F) A) and D)

Question 6

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing,and therefore should be equal.

Accepted Answer

A) True 
 B)False

Question 7

Liabilities are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  revenues,liabilities
B)  dividends,assets
C)  liabilities,dividends
D)  expenses,liabilitiesE) A) and D)
F) A) and C)

Question 9

On the chart of accounts,the balance sheet accounts are normally listed in the following order

Accepted Answer

A)  liabilities,assets,stockholders' equity
B)  assets,liabilities,stockholders' equity
C)  stockholders' equity,assets,liabilities
D)  assets,stockholders' equity,liabilitiesE) B) and C)
F) None of the above

Question 10

This journal entry will

Accepted Answer

A)  increase Stockholders' Equity and decrease Cash
B)  increase Cash and decrease Stockholders' Equity
C)  increase Cash and increase Stockholders' Equity
D)  decrease Cash and decrease Stockholders' EquityE) All of the above
F) None of the above

Question 11

The verification that the total dollar amount of the debits equals the total dollar amount of the credits in the ledger is called a

Accepted Answer

A)  ledger
B)  trial balance
C)  account
D)  balance sheetE) A) and D)
F) All of the above

Question 12

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred.What will the accountant do to find the error?

Accepted Answer

A)  Determine the amount of the error and look for that amount on the trial balance.
B)  Determine the amount of the error and divide by two,then look for that amount on the trial balance.
C)  Determine the amount of the error and refer to the journal entries for that amount.
D)  Determine the amount of the error and divide by nine.If the result is evenly divided,then this type of error is likely.E) A) and B)
F) A) and C)

Question 13

On January 1,2011,Cary Parsons established Cary's Catering Service.Listed below are accounts to use for transactions (a)through (f),each identified by a number.Following this list are the transactions that occurred during the first month of operations.You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s)in the appropriate box.

Accepted Answer

The answer of On January 1,2011,Cary Parsons established Cary's Catering...

Question 14

Which of the following entries records the payment of rent for the current month?

Accepted Answer

A)  Cash,debit;Rent Expense,credit
B)  Rent Expense,debit;Cash,credit
C)  Rent Expense,debit;Accounts Receivable,credit
D)  Accounts Payable,debit;Rent Expense,creditE) None of the above
F) B) and C)

Question 15

Liability accounts are increased by debits.

Accepted Answer

A) True 
 B)False

Question 16

The normal balance of the dividends account is a debit.

Accepted Answer

A) True 
 B)False

Question 17

Supplies purchased on account were incorrectly recorded as Office Equipment.The correcting entry would be

Accepted Answer

A)  Supplies,debit;Office Equipment,credit.
B)  Accounts Receivable,debit;Supplies,credit.
C)  Office Equipment,debit;Supplies Expense,credit.
D)  Supplies,debit;Accounts Payable,credit.E) A) and B)
F) All of the above

Question 18

Listed below are accounts to use for transactions (a)through (d),each identified by a number.Following this list are the transactions.You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s)in the appropriate box.

Accepted Answer

The answer of Listed below are accounts to use for...

Question 19

For a month's transactions for a typical medium-sized business,the salary expense account is likely to have only credit entries.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following entries records the acquisition of office supplies on account?

Accepted Answer

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

Exam 2: Analyzing Transactions

Liability accounts are increased by debits.

Correct Answer
verified

The normal balance of the dividends account is a debit.

Correct Answer
verified

For a month's transactions for a typical medium-sized business,the salary expense account is likely to have only credit entries.

Correct Answer
verified

A debit signifies a decrease in

Correct Answer
verified

Which of the following entries records the payment of rent for the current month?

Correct Answer
verified

Listed below are accounts to use for transactions (a)through (d),each identified by a number.Following this list are the transactions.You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s)in the appropriate box.

Correct Answer
verified

On the chart of accounts,the balance sheet accounts are normally listed in the following order

Correct Answer
verified

Correct Answer
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Which of the following entries records the acquisition of office supplies on account?

Correct Answer
verified

Liabilities are increased with debits and decreased with credits.

Correct Answer
verified

A debit balance in which of the following accounts would indicate a likely error?

Correct Answer
verified

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred.What will the accountant do to find the error?

Correct Answer
verified

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing,and therefore should be equal.

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

Which are the parts of the T account?

Correct Answer
verified

The journal includes both debit and credit accounts for each transaction.

Correct Answer
verified

Supplies purchased on account were incorrectly recorded as Office Equipment.The correcting entry would be

Correct Answer
verified

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

Correct Answer
verified

The verification that the total dollar amount of the debits equals the total dollar amount of the credits in the ledger is called a

Correct Answer
verified

This journal entry will

Correct Answer
verified

Exam 2: Analyzing Transactions

Liability accounts are increased by debits.

Correct AnswerverifiedShow Answer

The normal balance of the dividends account is a debit.

Correct AnswerverifiedShow Answer

For a month's transactions for a typical medium-sized business,the salary expense account is likely to have only credit entries.

Correct AnswerverifiedShow Answer

A debit signifies a decrease in

Correct AnswerverifiedShow Answer

Which of the following entries records the payment of rent for the current month?

Correct AnswerverifiedShow Answer

Listed below are accounts to use for transactions (a)through (d),each identified by a number.Following this list are the transactions.You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s)in the appropriate box.

Correct AnswerverifiedShow Answer

On the chart of accounts,the balance sheet accounts are normally listed in the following order

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following entries records the acquisition of office supplies on account?

Correct AnswerverifiedShow Answer

Liabilities are increased with debits and decreased with credits.

Correct AnswerverifiedShow Answer

A debit balance in which of the following accounts would indicate a likely error?

Correct AnswerverifiedShow Answer

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred.What will the accountant do to find the error?

Correct AnswerverifiedShow Answer

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing,and therefore should be equal.

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

Which are the parts of the T account?

Correct AnswerverifiedShow Answer

The journal includes both debit and credit accounts for each transaction.

Correct AnswerverifiedShow Answer

Supplies purchased on account were incorrectly recorded as Office Equipment.The correcting entry would be

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The verification that the total dollar amount of the debits equals the total dollar amount of the credits in the ledger is called a

Correct AnswerverifiedShow Answer

This journal entry will

Correct AnswerverifiedShow Answer

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