Question 1

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

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> While the trend in sales reve...

Question 2

The chart of accounts classifies the accounts to make identification of the accounts easier.This is done by way of assigning a number to each account.The first number identifies the classification of the type of account.Which of the following indicates the use of this classification?

Accepted Answer

A)  1-Assets,2-Liabilities,3-Stockholders' Equity,4-Expenses,5-Revenues
B)  1-Assets,2-Liabilities,3-Stockholders' Equity,4-Revenues,5-Expenses
C)  1-Assets,2-Stockholders' Equity,3-Revenues,4-Expenses,5-Dividends
D)  1-Stockholders' Equity,2-Dividends,3-Revenues,4-ExpensesE) B) and C)
F) A) and B)

Question 3

Scott,Inc.issued $40,000 of capital stock.How would this transaction be entered in the journal?

Accepted Answer

A)  Cash 40,000 Capital Stock 40,000Sold stock for cash.
B)  Cash 40,000 Inventory 40,000Sold stock for cash.
C)  Capital Stock 40,000 Cash 40,000Sold stock for cash.
D)  Capital Stock 40,000 Accounts Payable 40,000Sold stock for cash.E) A) and B)
F) B) and D)

Question 4

Which of the following applications of the rules of debit and credit is true?

Accepted Answer

A)  decrease Prepaid Insurance with a credit and the normal balance is a credit
B)  increase Accounts Payable with a credit and the normal balance is a debit
C)  increase Supplies Expense with a debit and the normal balance is a debit
D)  decrease Cash with a debit and the normal balance is a creditE) A) and D)
F) C) and D)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

Accepted Answer

A)  all of the information from the journal was correctly transferred to the ledger
B)  all accounts have their correct balances in the ledger
C)  only the journal is accurate;the ledger may be incorrect
D)  only that the debit dollar amounts equal the credit dollar amountsE) B) and C)
F) C) and D)

Question 7

Accounts

Accepted Answer

A)  do not reflect money amounts
B)  are not used by entities that manufacture products
C)  are records of increases and decreases in individual financial statement items
D)  are only used by large entities with many transactionsE) B) and D)
F) None of the above

Question 8

The chart of accounts for the Corning Corporation includes the following:

On journal page 3,the following transaction was found:
  Prepaid Insurance 1,530 Cash 1,530\begin{array}{|c|l|l|}\hline 	ext { Prepaid Insurance } & 1,530 & \\hline 	ext { Cash } & & 1,530 \\hline\end{array} Prepaid Insurance  Cash ​1,530​1,530​​ 
What is the posting reference that will be found in the Prepaid Insurance account?

Accepted Answer

A)  11
B)  15
C)  3
D)  none of these E) None of the above
F) A) and B)

Question 9

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 10

In which of the following types of accounts are decreases recorded with debits?

Accepted Answer

A)  assets
B)  revenues
C)  expenses
D)  dividendsE) A) and B)
F) A) and D)

Question 11

Which of the following entries records the payment of an account payable?

Accepted Answer

A)  debit Cash;credit Accounts Payable
B)  debit Accounts Receivable;credit Cash
C)  debit Cash;credit Supplies Expense
D)  debit Accounts Payable;credit CashE) A) and B)
F) A) and C)

Question 12

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

Exam 2: Analyzing Transactions

In which of the following types of accounts are decreases recorded with debits?

Correct Answer
verified

Which of the following entries records the payment of an account payable?

Correct Answer
verified

Which of the following applications of the rules of debit and credit is true?

Correct Answer
verified

Scott,Inc.issued $40,000 of capital stock.How would this transaction be entered in the journal?

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

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

Correct Answer
verified
While the trend in sales reve...
View Answer

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

Correct Answer
verified

Correct Answer
verified

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

Correct Answer
verified

Accounts

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

The chart of accounts classifies the accounts to make identification of the accounts easier.This is done by way of assigning a number to each account.The first number identifies the classification of the type of account.Which of the following indicates the use of this classification?

Correct Answer
verified

Exam 2: Analyzing Transactions

In which of the following types of accounts are decreases recorded with debits?

Correct AnswerverifiedShow Answer

Which of the following entries records the payment of an account payable?

Correct AnswerverifiedShow Answer

Which of the following applications of the rules of debit and credit is true?

Correct AnswerverifiedShow Answer

Scott,Inc.issued $40,000 of capital stock.How would this transaction be entered in the journal?

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

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

Correct Answerverified While the trend in sales reve...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

Correct AnswerverifiedShow Answer

Accounts

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

The chart of accounts classifies the accounts to make identification of the accounts easier.This is done by way of assigning a number to each account.The first number identifies the classification of the type of account.Which of the following indicates the use of this classification?

Correct AnswerverifiedShow Answer

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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While the trend in sales reve...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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