Question 1

The accounts in the ledger of Devers Gym as of August 31 are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been omitted. Prepare an unadjusted trial balance, listing the accounts in proper sequence and inserting the missing figure for cash.
​ $\begin{array}{|l|r|l|c|}
\hline \text { Accounts Payable } & \$ 36,200 & \text { Notes Payable } & \$ 125,000 \
\hline \text { Accounts Receivable } & 63,450 & \text { Prepaid Insurance } & 16,800 \
\hline \text { Cash } & ? & \text { Rent Expense } & 42,000 \
\hline \text { Common Stock } & 30,000 & \text { Retained Earnings } & 72,300 \
\hline \text { Dividends } & 5,000 & \text { Supplies } & 3,000 \
\hline \text { Fees Earned } & 180,600 & \text { Supplies Expense } & 9,500 \
\hline \text { Insurance Expense } & 4,200 & \text { Unearned Rent } & 18,000 \
\hline \text { Land } & 125,000 & \text { Utilities Expense } & 16,700 \
\hline \text { Miscellaneous Expense } & 4,500 & \text { Wages Expense } & 94,000 \
\hline
\end{array}$

Accepted Answer

The answer of The accounts in the ledger of Devers...

Question 2

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Accepted Answer

A) True 
 B)False

Question 3

The normal balance of an expense account is a credit.

Accepted Answer

A) True 
 B)False

Question 4

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Accepted Answer

A) True 
 B)False

Question 5

A list of the accounts used by a business is called the

Accepted Answer

A)   journal
B)   chart of accounts
C)   T chart
D)   debit listingE) All of the above
F) C) and D)

Question 6

A trial balance is prepared to

Accepted Answer

A)   prove that there were no errors made in recording transactions into the journal
B)   prove that no errors were made in posting to the ledger
C)   prove that each account balance is correct
D)   discover errors that affect the equality of debits and creditsE) B) and C)
F) All of the above

Question 7

The posting process will include the transfer of which of the following data from the journal to the account?

Accepted Answer

A)   date, amount (debit or credit) 
B)   date, amount (debit or credit) , journal page number
C)   amount (debit or credit) , account number
D)   date, amount (debit or credit) , account numberE) A) and B)
F) None of the above

Question 8

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 9

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

Accepted Answer

A)   Cash, debit; Insurance Expense, credit
B)   Insurance Expense, debit; Cash, credit
C)   Insurance Expense, debit; Accounts Receivable, credit
D)   Prepaid Insurance, debit; Cash, creditE) All of the above
F) B) and D)

Question 10

Which of the following is not a correct rule of debits and credits?

Accepted Answer

A)   Assets, expenses, and dividends are increased by debits.
B)   Assets are decreased by credits and have a normal debit balance.
C)   Liabilities, revenues, and stockholders' equity are increased by credits.
D)   The normal balance for revenues and expenses is a credit.E) A) and C)
F) B) and C)

Question 11

Transactions are listed in the journal chronologically.

Accepted Answer

A) True 
 B)False

Question 12

The increases in stockholders' equity attributable to selling services or products to customers are called

Accepted Answer

A)   assets
B)   liabilities
C)   revenues
D)   expensesE) B) and C)
F) A) and D)

Question 13

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

Accepted Answer

A) True 
 B)False

Question 14

A trial balance determines the complete accuracy of the numbers.

Accepted Answer

A) True 
 B)False

Question 15

Office supplies were sold by Janer's Cleaning Service at cost to another repair shop, with cash received. Which of the following entries for Janer's Cleaning Service records this transaction?

Accepted Answer

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

Question 16

Which of the following entries records the receipt of cash from clients on account?

Accepted Answer

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

Question 17

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 18

Debits will increase unearned revenues and revenues.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following groups of accounts increase with a credit?

Accepted Answer

A)   common stock, revenues, expenses
B)   assets, common stock, revenues
C)   liabilities, common stock, revenues
D)   none of theseE) A) and B)
F) B) and D)

Question 20

A journal with a debit and credit column for recording transactions is known as a

Accepted Answer

A)   debit and credit journal
B)   normal journal
C)   two-column journal
D)   summary journalE) A) and B)
F) C) and D)

Exam 2: Double-Entry Accounting

Correct Answer
verified

A journal with a debit and credit column for recording transactions is known as a

Correct Answer
verified

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

Correct Answer
verified

Which of the following groups of accounts increase with a credit?

Correct Answer
verified

The increases in stockholders' equity attributable to selling services or products to customers are called

Correct Answer
verified

Office supplies were sold by Janer's Cleaning Service at cost to another repair shop, with cash received. Which of the following entries for Janer's Cleaning Service records this transaction?

Correct Answer
verified

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

Correct Answer
verified

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Correct Answer
verified

Debits will increase unearned revenues and revenues.

Correct Answer
verified

The normal balance of an expense account is a credit.

Correct Answer
verified

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

Correct Answer
verified

The posting process will include the transfer of which of the following data from the journal to the account?

Correct Answer
verified

A list of the accounts used by a business is called the

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

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Correct Answer
verified

A trial balance determines the complete accuracy of the numbers.

Correct Answer
verified

Which of the following entries records the receipt of cash from clients on account?

Correct Answer
verified

Which of the following is not a correct rule of debits and credits?

Correct Answer
verified

A trial balance is prepared to

Correct Answer
verified

Transactions are listed in the journal chronologically.

Correct Answer
verified

Exam 2: Double-Entry Accounting

Correct AnswerverifiedShow Answer

A journal with a debit and credit column for recording transactions is known as a

Correct AnswerverifiedShow Answer

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.

Correct AnswerverifiedShow Answer

Which of the following groups of accounts increase with a credit?

Correct AnswerverifiedShow Answer

The increases in stockholders' equity attributable to selling services or products to customers are called

Correct AnswerverifiedShow Answer

Office supplies were sold by Janer's Cleaning Service at cost to another repair shop, with cash received. Which of the following entries for Janer's Cleaning Service records this transaction?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger.

Correct AnswerverifiedShow Answer

Debits will increase unearned revenues and revenues.

Correct AnswerverifiedShow Answer

The normal balance of an expense account is a credit.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The posting process will include the transfer of which of the following data from the journal to the account?

Correct AnswerverifiedShow Answer

A list of the accounts used by a business is called the

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

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Correct AnswerverifiedShow Answer

A trial balance determines the complete accuracy of the numbers.

Correct AnswerverifiedShow Answer

Which of the following entries records the receipt of cash from clients on account?

Correct AnswerverifiedShow Answer

Which of the following is not a correct rule of debits and credits?

Correct AnswerverifiedShow Answer

A trial balance is prepared to

Correct AnswerverifiedShow Answer

Transactions are listed in the journal chronologically.

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