Question 1

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 2

Which of the following will decrease retained earnings?

Accepted Answer

A)   Supplies are purchased on account.
B)   Dividends are declared and paid.
C)   Cash is received from customers.
D)   Payment is made on an accounts payable.E) C) and D)
F) B) and D)

Question 3

An account is said to have a debit balance if

Accepted Answer

A)   the amount of the debits exceeds the amount of the credits
B)   there are more entries on the debit side than on the credit side
C)   there are more entries on the credit side than on the debit side
D)   the first entry of the accounting period was posted on the debit sideE) B) and C)
F) A) and D)

Question 4

Which of the following errors will cause the trial balance totals to be unequal?

Accepted Answer

A)   posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted
B)   failure to record a transaction or to post a transaction
C)   recording the same transaction more than once
D)   recording the same erroneous amount for both the debit and the credit parts of a transactionE) C) and D)
F) A) and D)

Question 5

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 6

A group of related accounts that make up a complete unit is called a trial balance.

Accepted Answer

A) True 
 B)False

Question 7

If the two totals of a trial balance are not equal, it could be due to

Accepted Answer

A)   failure to record a transaction
B)   recording the same erroneous amount for both the debit and the credit parts of a transaction
C)   an error in determining the account balances, such as a balance being incorrectly computed
D)   recording the same transaction more than onceE) A) and B)
F) B) and C)

Question 8

Liabilities are debts owed by the business entity.

Accepted Answer

A) True 
 B)False

Question 9

The unearned revenues account is an example of a liability.

Accepted Answer

A) True 
 B)False

Question 10

The normal balance of revenue accounts is a credit.

Accepted Answer

A) True 
 B)False

Question 11

The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.

Accepted Answer

A) True 
 B)False

Question 12

A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should

Accepted Answer

A)   make no entry until the cash is received
B)   Cash, debit; Accounts Receivable, credit
C)   Cash, debit; Fees Earned, credit
D)   Accounts Receivable, debit; Fees Earned, creditE) B) and C)
F) None of the above

Question 13

Retained earnings will be reduced by all of the following except

Accepted Answer

A)   revenues
B)   expenses
C)   dividends
D)   all of theseE) None of the above
F) A) and B)

Question 14

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 15

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)   an asset with a debit balance
D)   an expense with a debit balanceE) A) and D)
F) A) and C)

Question 16

On August 30th JumpStart pays numerous bills which include:
Payment to the landlord for August rent - $2,300
Payment to the Gas & Electric Company for August's bill - $525
Payment of employee wages for the last half of August - $1,750
Payment of shopping center's parking lot cleaning fee - $275
Journalize these payments as one compound journal entry.

Accepted Answer

The answer of On August 30th JumpStart pays numerous bills...

Question 17

Retained earnings will be reduced by the amount in the dividends account.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following group 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 C)

Question 19

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Accepted Answer

A)   Cash, debit; Wages Expense, credit
B)   Wages Payable, debit; Wages Expense, credit
C)   Wages Expense, debit, Cash, credit
D)   Cash, debit; Wages Payable, creditE) A) and C)
F) B) and C)

Question 20

A debit may signify a(n)

Accepted Answer

A)   decrease in an asset account
B)   decrease in a liability account
C)   increase in the retained earnings account
D)   decrease in the dividends accountE) All of the above
F) C) and D)

Exam 2: Analyzing Transactions

Which of the following errors will cause the trial balance totals to be unequal?

Correct Answer
verified

Retained earnings will be reduced by the amount in the dividends account.

Correct Answer
verified

An account is said to have a debit balance if

Correct Answer
verified

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 order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.

Correct Answer
verified

The classification and normal balance of the accounts payable account is

Correct Answer
verified

A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should

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

A group of related accounts that make up a complete unit is called a trial balance.

Correct Answer
verified

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

Correct Answer
verified

Liabilities are debts owed by the business entity.

Correct Answer
verified

The normal balance of revenue accounts is a credit.

Correct Answer
verified

Which of the following will decrease retained earnings?

Correct Answer
verified

Retained earnings will be reduced by all of the following except

Correct Answer
verified

If the two totals of a trial balance are not equal, it could be due to

Correct Answer
verified

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Correct Answer
verified

A debit may signify a(n)

Correct Answer
verified

The unearned revenues account is an example of a liability.

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

Exam 2: Analyzing Transactions

Which of the following errors will cause the trial balance totals to be unequal?

Correct AnswerverifiedShow Answer

Retained earnings will be reduced by the amount in the dividends account.

Correct AnswerverifiedShow Answer

An account is said to have a debit balance if

Correct AnswerverifiedShow Answer

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 order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.

Correct AnswerverifiedShow Answer

The classification and normal balance of the accounts payable account is

Correct AnswerverifiedShow Answer

A patient has a physical examination and asks the bookkeeper to mail the bill. The bookkeeper should

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

A group of related accounts that make up a complete unit is called a trial balance.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Liabilities are debts owed by the business entity.

Correct AnswerverifiedShow Answer

The normal balance of revenue accounts is a credit.

Correct AnswerverifiedShow Answer

Which of the following will decrease retained earnings?

Correct AnswerverifiedShow Answer

Retained earnings will be reduced by all of the following except

Correct AnswerverifiedShow Answer

If the two totals of a trial balance are not equal, it could be due to

Correct AnswerverifiedShow Answer

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Correct AnswerverifiedShow Answer

A debit may signify a(n)

Correct AnswerverifiedShow Answer

The unearned revenues account is an example of a liability.

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified