Question 1

Cost of goods sold is an example of a revenue account.

Accepted Answer

A) True 
 B)False

Question 2

Which accounts are increased by debits?

Accepted Answer

A)  Cash and Accounts Payable.
B)  Salaries Expense and Common Stock.
C)  Accounts Receivable and Utilities Expense.
D)  Accounts Payable and Service Revenue.E) B) and D)
F) A) and B)

Question 3

Posting is:

Accepted Answer

A)  copying the information from the journal to the trial balance.
B)  entering the data into the journal.
C)  copying the information from the journal to the ledger.
D)  copying the information from the ledger to the financial statements.E) B) and C)
F) C) and D)

Question 4

The trial balance for James Corporation shows that the total debits equal the total credits. This indicates that all of the accounts are free from errors.

Accepted Answer

A) True 
 B)False

Question 5

Posting is the process of copying data from the ledger to the journal.

Accepted Answer

A) True 
 B)False

Question 6

Prepare the journal entry for the following transaction:
The Board of Directors of XYZ Corporation declared dividends of $6,000. These dividends were paid to the stockholders on the same date.

Accepted Answer

The Board of Directors of XYZ ...

Question 7

A company received $33,000 cash and issued common stock in exchange. How does this transaction affect the accounting equation?

Accepted Answer

A)  Add $33,000 to Cash and add $33,000 to Retained Earnings.
B)  Add $33,000 to Cash and add $33,000 to Revenue.
C)  Add $33,000 to Dividends and subtract $33,000 from Retained Earnings.
D)  Add $33,000 to Cash and add $33,000 to Common Stock.E) A) and B)
F) A) and D)

Question 8

Jaye Company purchased a new building by signing a note for $21,000. The entry to record the transaction is:

Accepted Answer

A)   
B)   
C)   
D)   E) A) and B)
F) A) and C)

Question 9

An accrued liability is a liability for an expense that has not yet been paid.

Accepted Answer

A) True 
 B)False

Question 10

In the journalizing process, the credit side is entered on the left margin, and the debit side is indented to the right.

Accepted Answer

A) True 
 B)False

Question 11

An important rule of debits and credits is:

Accepted Answer

A)  credits increase revenue accounts.
B)  debits decrease asset accounts.
C)  debits increase liability accounts.
D)  credits increase expense accounts.E) A) and B)
F) A) and C)

Question 12

Transaction analysis and the accounting equation have been used to record several transactions for a company. The transactions are now recorded on a multi-column spreadsheet. When preparing an income statement with this spreadsheet, which column would be used?

Accepted Answer

A)  Cash
B)  Accounts Payable
C)  Dividends
D)  Retained EarningsE) A) and D)
F) A) and C)

Question 13

In a journal entry, the sum of the debits must always equal the sum of the credits.

Accepted Answer

A) True 
 B)False

Question 14

The accounts of Local Company at May 31, 2017 are as follows:  What are the first four lines, in proper order, on the trial balance at May 31, 2017?

Accepted Answer

A)  Accounts Payable, Accounts Receivable, Cash, Common Stock
B)  Sales Revenue, Salary Expense, Insurance Expense, Supplies
C)  Cash, Accounts Receivable, Supplies, Accounts Payable
D)  Accounts Payable, Dividends, Common Stock, Retained EarningsE) B) and C)
F) A) and D)

Question 15

Company A received cash and issued stock to a new stockholder. In recording this transaction:

Accepted Answer

A)  Cash would be debited.
B)  Common Stock would be debited.
C)  Cash would be credited.
D)  Retained Earnings would be credited.E) A) and C)
F) A) and B)

Question 16

An example of a slide-type error is writing:

Accepted Answer

A)  $1600 as $6100.
B)  $600 as $1200.
C)  $4000 as $8000.
D)  $700 as $70.E) C) and D)
F) B) and C)

Question 17

A company completed the following transactions during the month of October: I. Purchased office supplies on account, $4800.
II. Provided services for cash, $22,000.
III. Provided services on account, $12,000.
IV. Collected cash from a customer on account, $7400.
V. Paid the monthly rent of $18,000.
What was the company's net income for the month?

Accepted Answer

A)  $12,000
B)  $16,000
C)  $34,000
D)  $52,000E) A) and B)
F) B) and C)

Question 18

An account will have a debit balance if:

Accepted Answer

A)  the amount of the credits exceeds the amount of the debits.
B)  the amount of the debits exceeds the amount of the credits.
C)  the account has more debit entries than credit entries.
D)  it is a liability account.E) A) and C)
F) B) and C)

Question 19

An account payable is recorded when a formal promissory note is signed.

Accepted Answer

A) True 
 B)False

Question 20

When services are performed on account:

Accepted Answer

A)  cash is increased.
B)  revenue will not be recorded until the cash is received from the customer.
C)  accounts receivable is increased.
D)  accounts payable is increased.E) A) and B)
F) A) and C)

Exam 2: Transaction Analysis

Cost of goods sold is an example of a revenue account.

Correct Answer
verified

Company A received cash and issued stock to a new stockholder. In recording this transaction:

Correct Answer
verified

The accounts of Local Company at May 31, 2017 are as follows: What are the first four lines, in proper order, on the trial balance at May 31, 2017?

Correct Answer
verified

An important rule of debits and credits is:

Correct Answer
verified

An account payable is recorded when a formal promissory note is signed.

Correct Answer
verified

When services are performed on account:

Correct Answer
verified

The trial balance for James Corporation shows that the total debits equal the total credits. This indicates that all of the accounts are free from errors.

Correct Answer
verified

In a journal entry, the sum of the debits must always equal the sum of the credits.

Correct Answer
verified

In the journalizing process, the credit side is entered on the left margin, and the debit side is indented to the right.

Correct Answer
verified

Prepare the journal entry for the following transaction: The Board of Directors of XYZ Corporation declared dividends of $6,000. These dividends were paid to the stockholders on the same date.

Correct Answer
verified
The Board of Directors of XYZ ...
View Answer

Correct Answer
verified

Posting is the process of copying data from the ledger to the journal.

Correct Answer
verified

Transaction analysis and the accounting equation have been used to record several transactions for a company. The transactions are now recorded on a multi-column spreadsheet. When preparing an income statement with this spreadsheet, which column would be used?

Correct Answer
verified

Jaye Company purchased a new building by signing a note for $21,000. The entry to record the transaction is:

Correct Answer
verified

A company received $33,000 cash and issued common stock in exchange. How does this transaction affect the accounting equation?

Correct Answer
verified

An example of a slide-type error is writing:

Correct Answer
verified

Which accounts are increased by debits?

Correct Answer
verified

An account will have a debit balance if:

Correct Answer
verified

Posting is:

Correct Answer
verified

An accrued liability is a liability for an expense that has not yet been paid.

Correct Answer
verified

Exam 2: Transaction Analysis

Cost of goods sold is an example of a revenue account.

Correct AnswerverifiedShow Answer

Company A received cash and issued stock to a new stockholder. In recording this transaction:

Correct AnswerverifiedShow Answer

The accounts of Local Company at May 31, 2017 are as follows: What are the first four lines, in proper order, on the trial balance at May 31, 2017?

Correct AnswerverifiedShow Answer

An important rule of debits and credits is:

Correct AnswerverifiedShow Answer

An account payable is recorded when a formal promissory note is signed.

Correct AnswerverifiedShow Answer

When services are performed on account:

Correct AnswerverifiedShow Answer

The trial balance for James Corporation shows that the total debits equal the total credits. This indicates that all of the accounts are free from errors.

Correct AnswerverifiedShow Answer

In a journal entry, the sum of the debits must always equal the sum of the credits.

Correct AnswerverifiedShow Answer

In the journalizing process, the credit side is entered on the left margin, and the debit side is indented to the right.

Correct AnswerverifiedShow Answer

Prepare the journal entry for the following transaction: The Board of Directors of XYZ Corporation declared dividends of $6,000. These dividends were paid to the stockholders on the same date.

Correct AnswerverifiedThe Board of Directors of XYZ ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Posting is the process of copying data from the ledger to the journal.

Correct AnswerverifiedShow Answer

Transaction analysis and the accounting equation have been used to record several transactions for a company. The transactions are now recorded on a multi-column spreadsheet. When preparing an income statement with this spreadsheet, which column would be used?

Correct AnswerverifiedShow Answer

Jaye Company purchased a new building by signing a note for $21,000. The entry to record the transaction is:

Correct AnswerverifiedShow Answer

A company received $33,000 cash and issued common stock in exchange. How does this transaction affect the accounting equation?

Correct AnswerverifiedShow Answer

An example of a slide-type error is writing:

Correct AnswerverifiedShow Answer

Which accounts are increased by debits?

Correct AnswerverifiedShow Answer

An account will have a debit balance if:

Correct AnswerverifiedShow Answer

Posting is:

Correct AnswerverifiedShow Answer

An accrued liability is a liability for an expense that has not yet been paid.

Correct AnswerverifiedShow Answer

Correct Answer
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The Board of Directors of XYZ ...
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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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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