Question 1

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

Question 2

In the chart of accounts,the balance sheet accounts are normally listed in which order?

Accepted Answer

A)  liabilities,assets,stockholders' equity
B)  assets,liabilities,stockholders' equity
C)  stockholders' equity,assets,liabilities
D)  assets,stockholders' equity,liabilitiesE) A) and C)
F) B) and C)

Question 3

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

Accepted Answer

A)  Land; Accounts Payable; Dividends
B)  Accounts Payable; Unearned Revenue; Common Stock
C)  Dividends; Accounts Receivable; Unearned Revenue
D)  Cash; Accounts Receivable; Common StockE) A) and B)
F) All of the above

Question 4

On August 30,JumpStart incurred the following expenses:
Payment to the landlord for August rent,$2,300
Payment to the Gas & Electric Company for August's bill,$525 Payment of employee wages for the last half of August,$1,750 Payment of shopping center's parking lot cleaning fee,$275
Journalize these payments as one compound journal entry.

Accepted Answer

None...

Question 5

Which of the following entries records the payment of a bill for your insurance premium?

Accepted Answer

A)  debit Prepaid Insurance; credit Cash
B)  debit Insurance Payable; credit Accounts Receivable
C)  debit Accounts Payable; credit Cash
D)  debit Cash; credit Prepaid InsuranceE) None of the above
F) A) and B)

Question 6

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.

Accepted Answer

A) True 
 B)False

Question 7

A client has a massage and asks the company bookkeeper to mail her the bill.The bookkeeper should make which entry to record the invoice?

Accepted Answer

A)  No entry until the cash is received
B)  Fees Earned,debit; Accounts Receivable,credit
C)  Cash,debit; Fees Earned,credit
D)  Accounts Receivable,debit; Fees Earned,creditE) B) and D)
F) All of the above

Question 8

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

Page 3 of the journal contains the following entry:

-What is the posting reference that will be found in the cash account?

Accepted Answer

A)  11
B)  15
C)  3
D)  13E) B) and D)
F) A) and B)

Question 9

Selected accounts from the ledger of Garrison Company appear below.  For each account, indicate the following:
a.	In the first column at the right, indicate the nature of each account, using the following abbreviations:

b.	In the second column, indicate the increase side of each account by inserting Dr. or Cr.

Accepted Answer

The answer of Selected accounts from the ledger of Garrison...

Question 10

All of the following statements regarding a horizontal analysis are true except:

Accepted Answer

A)  A horizontal analysis is used to compare an item in a current statement with the same item in prior statements.
B)  A horizontal analysis can be performed on a balance sheet and income statement,but not on a statement of cash flows.
C)  If Fees Earned in Year 1 is $125,000 and Fees Earned in Year 2 is $143,750,a horizontal analysis will indicate a 15% increase over this period.
D)  When two statements are compared in horizontal analysis,the earlier statement is used as the base for computing the amount and the percent of change.E) A) and B)
F) B) and D)

Question 11

Which of the following is true about T accounts?

Accepted Answer

A)  The left side of a T account is called the debit side.
B)  The left side of a T account is called the credit side.
C)  The right side of a T account is called the debit side.
D)  Transactions are first recorded in T accounts and then posted to the journal.E) A) and D)
F) B) and D)

Question 12

The payment for the monthly rent will require which of the following entries?

Accepted Answer

A)  debit Cash and debit Rent Expense
B)  credit Cash and credit Rent Expense
C)  debit Rent Expense and credit Cash
D)  credit Rent Expense and debit CashE) A) and B)
F) B) and D)

Question 13

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) C) and D)
F) B) and C)

Question 14

Answer the following questions for each of the errors listed below,considered individually:
a. Did the error cause the trial balance totals to be unequal?
b. What is the amount of the difference between the trial balance totals where applicable?
c. Which of the trial balance totals,debit or credit,is the larger where applicable?
Present your answers in columnar form,using the following headings:
 $\begin{array}{cccc}
\text { Error } & \text { Totals } & \text { Difference in Totals } & \text { Larger of Totals } \
\underline { \text { identifying number }} & \underline { \text { equal or unequal }} & \underline { \text { amount }} & \underline { \text { debit or credit }}
\end{array}$ Errors:
1. A dividend of $3,000 cash to shareholders was recorded by a debit of $3,000 to Salary Expense and a credit of $3,000 to Cash.
2. A $650 purchase of supplies on account was recorded as a debit of $1,650 to Equipment and a credit of $1,650 to Accounts Payable.
3. A purchase of equipment for $3,450 on account was not recorded.
4. A $870 receipt on account was recorded as a $870 debit to Cash and a $780 credit to Accounts Receivable.
5. A payment of $1,530 cash on account was recorded only as a credit to Cash.
6. Cash sales of $8,500 were recorded as a credit of $8,500 to Cash and a credit of $8,500 to Fees Earned.
7. The debit to record a $4,000 cash receipt on account was posted twice; the credit was posted once.
8. The credit to record a $300 cash payment on account was posted twice; the debit was posted once.
9. The debit balance of $7,400 in Accounts Receivable was recorded in the trial balance as a debit of $7,200.

Accepted Answer

The answer of Answer the following questions for each of...

Question 15

Which of the following entries records the acquisition of office supplies on account?

Accepted Answer

A)  Office Supplies,debit; Cash,credit
B)  Cash,debit; Office Supplies,credit
C)  Office Supplies,debit; Accounts Payable,credit
D)  Accounts Receivable,debit; Office Supplies,creditE) A) and B)
F) None of the above

Question 16

For the following, mark a “D” if the following account normally has a debit balance and mark a “C” if the following account normally has a credit balance.
 	-----1. Notes Payable
 	-----2. Mortgage Payable
 	-----3. Dividends
 	-----4. Accounts Receivable
 	-----5. Common Stock
 	-----6. Rent Revenue
 	-----7. Unearned Income
 	-----8. Utility Expense
 	-----9. Automobiles

Accepted Answer

1.C 2.C 3....

Question 17

McNally Industries has a condensed income statement as shown.   Year 2  Year 1  Sales $198,000$165,500 Total operating expenses 163,000147,500 Net income 35,00018,000\begin{array}{|l|r|r|}\hline & 	ext { Year 2 } & 	ext { Year 1 } \\hline 	ext { Sales } & \$ 198,000 & \$ 165,500 \\hline 	ext { Total operating expenses } & 163,000 & 147,500 \\hline 	ext { Net income } & 35,000 & 18,000 \\hline\end{array} Sales  Total operating expenses  Net income ​ Year 2 $198,000163,00035,000​ Year 1 $165,500147,50018,000​​ 
 Using horizontal analysis,calculate the amount and percent change for sales.Round to one decimal place.

Accepted Answer

A)  $32,500,19.6%
B)  $18,000,10.9%
C)  $35,000,17.7%
D)  $17,000,9.4% E) A) and D)
F) A) and C)

Question 18

On January 31,the cash account balance was $96,750.During January,cash receipts totaled $305,000 and cash payments totaled $375,880.Determine the cash balance on January 1.

Accepted Answer

(???) + $305,000 − $...

Question 19

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) None of the above
F) All of the above

Question 20

Accounts in the ledger are usually maintained in alphabetical order.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

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

Correct Answer
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Which of the following is true about T accounts?

Correct Answer
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Accounts

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

Correct Answer
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Correct Answer
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Correct Answer
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1.C 2.C 3....
View Answer

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.

Correct Answer
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All of the following statements regarding a horizontal analysis are true except:

Correct Answer
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The payment for the monthly rent will require which of the following entries?

Correct Answer
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Correct Answer
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On January 31,the cash account balance was $96,750.During January,cash receipts totaled $305,000 and cash payments totaled $375,880.Determine the cash balance on January 1.

Correct Answer
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(???) + $305,000 − $...
View Answer

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

Correct Answer
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Accounts in the ledger are usually maintained in alphabetical order.

Correct Answer
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Which of the following entries records the acquisition of office supplies on account?

Correct Answer
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In the chart of accounts,the balance sheet accounts are normally listed in which order?

Correct Answer
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The chart of accounts for the Corning Company includes the following: Page 3 of the journal contains the following entry: -What is the posting reference that will be found in the cash account?

Correct Answer
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A client has a massage and asks the company bookkeeper to mail her the bill.The bookkeeper should make which entry to record the invoice?

Correct Answer
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Correct Answer
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None...
View Answer

Which of the following entries records the payment of a bill for your insurance premium?

Correct Answer
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Exam 2: Analyzing Transactions

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is true about T accounts?

Correct AnswerverifiedShow Answer

Accounts

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answerverified1.C 2.C 3....View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

All of the following statements regarding a horizontal analysis are true except:

Correct AnswerverifiedShow Answer

The payment for the monthly rent will require which of the following entries?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

On January 31,the cash account balance was $96,750.During January,cash receipts totaled $305,000 and cash payments totaled $375,880.Determine the cash balance on January 1.

Correct Answerverified(???) + $305,000 − $...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Accounts in the ledger are usually maintained in alphabetical order.

Correct AnswerverifiedShow Answer

Which of the following entries records the acquisition of office supplies on account?

Correct AnswerverifiedShow Answer

In the chart of accounts,the balance sheet accounts are normally listed in which order?

Correct AnswerverifiedShow Answer

The chart of accounts for the Corning Company includes the following: Page 3 of the journal contains the following entry: -What is the posting reference that will be found in the cash account?

Correct AnswerverifiedShow Answer

A client has a massage and asks the company bookkeeper to mail her the bill.The bookkeeper should make which entry to record the invoice?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNone...View AnswerShow Answer

Which of the following entries records the payment of a bill for your insurance premium?

Correct AnswerverifiedShow Answer

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1.C 2.C 3....
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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(???) + $305,000 − $...
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Correct Answer
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Correct Answer
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None...
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