Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Question 3

On January 8,stockholders transfer ownership of several pieces of office equipment to the new business,JumpStart,for common stock.When new,these items were worth $72,500.The fair market value of the equipment is $60,000.Journalize this transfer.

Accepted Answer

While stockholders may have p...

Question 4

The Dividends account is an expense.

Accepted Answer

A) True 
 B)False

Question 5

Assets are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 6

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 D)

Question 7

Expense accounts are increased by credits.

Accepted Answer

A) True 
 B)False

Question 8

A dividends account represents the amount of earnings paid to the stockholders.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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

Question 10

Depending on the account title,the right side of the account is referred to as the credit side.

Accepted Answer

A) True 
 B)False

Question 11

On June 1,the cash account balance was $96,750.During June,cash receipts totaled $305,000 and the June 30 balance was $75,880.Determine the cash payments made during June.

Accepted Answer

$75,880 = $96,750 + ...

Question 12

The chart of accounts for the Corning Company includes the following:

Page 3 of the journal contains the following entry:

-What is the posting reference that will be found in the prepaid insurance account?

Accepted Answer

A)  11
B)  15
C)  3
D)  13E) C) and D)
F) None of the above

Question 13

Normal account balances are on the increase side of the accounts.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which of the following entries records the payment of dividends?

Accepted Answer

A)  debit Common Stock; credit Cash
B)  debit Dividends; credit Cash
C)  debit Salaries Expense; credit Cash
D)  debit Salaries Expense; credit Salaries PayableE) C) and D)
F) A) and B)

Question 16

The double-entry accounting system records each transaction twice.

Accepted Answer

A) True 
 B)False

Question 17

The chart of accounts for the Corning Company includes the following:

Page 3 of the journal contains the following entry:

- 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 B)
F) B) and C)

Question 18

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

Question 19

The debit side of an account

Accepted Answer

A)  depends on whether the account is an asset,liability,or stockholders' equity
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) A) and B)
F) A) and C)

Question 20

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Accepted Answer

A)  Prepaid Rent,debit; Rent Revenue,credit.
B)  Cash,debit; Unearned Rent,credit.
C)  Cash,debit; Prepaid Rent,credit.
D)  Cash,debit; Rent Expense,credit.E) B) and C)
F) All of the above

Exam 2: Analyzing Transactions

On January 8,stockholders transfer ownership of several pieces of office equipment to the new business,JumpStart,for common stock.When new,these items were worth $72,500.The fair market value of the equipment is $60,000.Journalize this transfer.

Correct AnswerverifiedWhile stockholders may have p...View AnswerShow Answer

Expense accounts are increased by credits.

Correct AnswerverifiedShow Answer

The chart of accounts for the Corning Company includes the following: Page 3 of the journal contains the following entry: -What is the posting reference that will be found in the prepaid insurance account?

Correct AnswerverifiedShow Answer

Which of the following entries records the payment of dividends?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A dividends account represents the amount of earnings paid to the stockholders.

Correct AnswerverifiedShow Answer

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

The debit side of an account

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Dividends account is an expense.

Correct AnswerverifiedShow Answer

Depending on the account title,the right side of the account is referred to as the credit side.

Correct AnswerverifiedShow Answer

The classification and normal balance of the accounts payable account is

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

The double-entry accounting system records each transaction twice.

Correct AnswerverifiedShow Answer

On June 1,the cash account balance was $96,750.During June,cash receipts totaled $305,000 and the June 30 balance was $75,880.Determine the cash payments made during June.

Correct Answerverified$75,880 = $96,750 + ...View AnswerShow Answer

Normal account balances are on the increase side of the accounts.

Correct AnswerverifiedShow Answer

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While stockholders may have p...
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$75,880 = $96,750 + ...
View Answer

Correct Answer
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