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Exam 2: Analyzing Transactions

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Question 61

True/False

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The journal includes both debit and credit accounts for each transaction.

A) True
B) False

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Question 62

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Withdrawals decrease owner's equity and are listed on the income statement as a deduction from revenue.

A) True
B) False

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Question 63

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The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

Below is the unadjusted trial balance for Dawson Designs. REQUIRED: (1) Identify the errors in the following trial balance. All accounts have normal balances. (2) Prepare a corrected trial balance.

Debiting the cash account will increase the account.

The double-entry accounting system records each transaction twice.

Prarie Clinic purchased X-ray equipment for $7,500, paid $2,250 down, with the remainder to be paid later. The correct entry would be

McMann Company has a condensed income statement as shown:: REQUIRED: Prepare a horizontal analysis of McMann Company's income statements. Comment on the trends, both favorable and unfavorable.

The process of transferring the debits and credits from the journal entries to the accounts is known as "updating the accounts".

Which of the following is true regarding normal balances of accounts?

The process of rewriting the information from the journal into the ledger is called

In which of the following types of accounts are increases recorded by credits?

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.

Which of the following abbreviations is correct?

Accounts are classified in the ledger

The erroneous arrangement of digits, such as writing $45 as $54, is called a slide.

All of the following accounts are increased with a debit except:

A chart of accounts is

The following two situations are independent of each other. 1. On June 1, the cash account balance was $45,750. During June, cash payments totaled $243,910 and the June 30 balance was $53,200. Determine the cash receipts during June and show your calculation. 2. On March 1, the supplies account balance was $1,800. During March, supplies of $2,450 were purchased and $630 of supplies were on hand as of March 31. Determine the supplies expense for March and show your calculation.

A debit is abbreviated as Db and a credit is abbreviated as Cr.