Question 1

When an account payable is paid with cash,the owner's equity in the business decreases.

Accepted Answer

A) True 
 B)False

Question 2

Prepare a journal entry for the purchase of a truck on April 4 for $85,700,paying $15,000 cash and the remainder on account.Omit explanation.

Accepted Answer

The answer of Prepare a journal entry for the purchase...

Question 3

A transaction that is recorded in the journal is called a journal entry.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following situations increases owner's equity?

Accepted Answer

A)  Supplies are purchased on account.
B)  Services are provided on account.
C)  Cash is received from customers on account.
D)  Utility bill will be paid next month.E) None of the above
F) A) and B)

Question 5

Which of the following accounts is an owner's equity account?

Accepted Answer

A)  Cash
B)  Accounts Payable
C)  Prepaid Insurance
D)  Ross Morris, CapitalE) None of the above
F) A) and D)

Question 6

Richardson Company has a condensed income statement as shown.​  Using horizontal analysis,calculate the amount and percent change for sales.Round to one decimal place.

Accepted Answer

A)  $(17,000) , (11.3%) 
B)  $(15,500) , (10.3%) 
C)  $(18,000) , (10.9%) 
D)  $(15,500) , (9.4%) E) None of the above
F) A) and D)

Question 7

Prepare a journal entry on October 12 for the fees earned on account,$14,600.Omit explanation.

Accepted Answer

The answer of Prepare a journal entry on October 12...

Question 8

The chart of accounts for Miguel Company includes the following:​  Page 5 of the journal contains the following transaction:​  What is the posting reference that will be found in the salaries expense account?

Accepted Answer

A)  5
B)  11
C)  54
D)  21E) A) and C)
F) All of the above

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account.
-Accounts Receivable

Accepted Answer

A)  Credit side
B)  Debit sideC) A) and B)
D) undefined

Question 11

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 confirm this suspicion?

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 2, 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 9. If the result is evenly divided, then this type of error is likely.E) A) and D)
F) B) and C)

Question 12

Match each of the following accounts with its proper account group from the groups listed below.
​
-Unearned Rent

Accepted Answer

A)  Assets
B)  Liabilities
C)  Owner's Equity
D)  Revenue
E)  ExpensesF) A) and C)
G) A) and D)

Question 13

On January 7,Damien Lawson invests $45,000 to initiate the operation of his business,JumpStart.Provide the journal entry for this transaction.

Accepted Answer

The answer of On January 7,Damien Lawson invests $45,000 to...

Question 14

Net income will result when

Accepted Answer

A)  revenues (credits)  > expenses (debits) 
B)  revenues (debits)  > expenses (credits) 
C)  expenses (credits)  = revenues (debits) 
D)  revenues (credits)  = expenses (debits) E) A) and C)
F) All of the above

Question 15

A cash payment is recorded in the cash account as

Accepted Answer

A)  neither a debit nor a credit
B)  a credit
C)  a debit
D)  either a debit or a creditE) A) and B)
F) All of the above

Question 16

Journalize the following selected transactions for January.Explanations may be omitted.​

Accepted Answer

The answer of Journalize the following selected transactions for January.Explanations...

Question 17

The normal balance of an expense account is a credit.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following accounts would be increased with a credit?

Accepted Answer

A)  Land; Accounts Payable; Drawing
B)  Accounts Payable; Unearned Revenue; Collins, Capital
C)  Collins, Capital; Accounts Receivable; Unearned Revenue
D)  Cash; Accounts Receivable; Collins, CapitalE) B) and C)
F) C) and D)

Question 19

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

Accepted Answer

A)  41, 3
B)  3, 11
C)  11, 41
D)  11, 3E) B) and D)
F) None of the above

Question 20

Which of the following is not considered to be a liability?

Accepted Answer

A)  Wages Payable
B)  Accounts Receivable
C)  Unearned Revenue
D)  Accounts PayableE) All of the above
F) None of the above

Exam 2: Analyzing Transactions

Which of the following situations increases owner's equity?

Correct AnswerverifiedShow Answer

Journalize the following selected transactions for January.Explanations may be omitted.​

Correct AnswerverifiedShow Answer

Match each of the following accounts with its proper account group from the groups listed below. ​ -Unearned Rent

Correct AnswerverifiedShow Answer

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account. -Accounts Receivable

Correct AnswerverifiedShow Answer

Net income will result when

Correct AnswerverifiedShow Answer

Richardson Company has a condensed income statement as shown.​ Using horizontal analysis,calculate the amount and percent change for sales.Round to one decimal place.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A cash payment is recorded in the cash account as

Correct AnswerverifiedShow Answer

Which of the following accounts is an owner's equity account?

Correct AnswerverifiedShow Answer

Prepare a journal entry on October 12 for the fees earned on account,$14,600.Omit explanation.

Correct AnswerverifiedShow Answer

Which of the following is not considered to be a liability?

Correct AnswerverifiedShow Answer

A transaction that is recorded in the journal is called a journal entry.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

On January 7,Damien Lawson invests $45,000 to initiate the operation of his business,JumpStart.Provide the journal entry for this transaction.

Correct AnswerverifiedShow Answer

Which of the following accounts would be increased with a credit?

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 confirm this suspicion?

Correct AnswerverifiedShow Answer

Prepare a journal entry for the purchase of a truck on April 4 for $85,700,paying $15,000 cash and the remainder on account.Omit explanation.

Correct AnswerverifiedShow Answer

The chart of accounts for Miguel Company includes the following:​ Page 5 of the journal contains the following transaction:​ What is the posting reference that will be found in the salaries expense account?

Correct AnswerverifiedShow Answer

When an account payable is paid with cash,the owner's equity in the business decreases.

Correct AnswerverifiedShow Answer

The normal balance of an expense account is a credit.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Journalize the following selected transactions for January.Explanations may be omitted.

Correct Answer
verified

Match each of the following accounts with its proper account group from the groups listed below. -Unearned Rent

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Richardson Company has a condensed income statement as shown. Using horizontal analysis,calculate the amount and percent change for sales.Round to one decimal place.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The chart of accounts for Miguel Company includes the following: Page 5 of the journal contains the following transaction: What is the posting reference that will be found in the salaries expense account?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified