Question 1

Which group of accounts is comprised of only assets?

Accepted Answer

A)  Cash,Accounts Payable,Buildings
B)  Accounts Receivable,Revenue,Cash
C)  Prepaid Expenses,Buildings,Patents
D)  Unearned Revenues,Prepaid Expenses,CashE) B) and D)
F) C) and D)

Question 2

The process of recording a transaction in the journal is called

Accepted Answer

A)  recording
B)  journalizing
C)  posting
D)  summarizingE) B) and C)
F) A) and B)

Question 3

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) B) and C)
F) None of the above

Question 4

Retained earnings account increases with debits.

Accepted Answer

A) True 
 B)False

Question 5

The process of initially recording a business transaction is called

Accepted Answer

A)  closing
B)  posting
C)  journalizing
D)  balancingE) A) and B)
F) C) and D)

Question 6

If the two totals of a trial balance are not equal,it could be due to

Accepted Answer

A)  failure to record a transaction
B)  recording the same erroneous amount for both the debit and the credit parts of a transaction
C)  an error in determining the account balances,such as a balance being incorrectly computed
D)  recording the same transaction more than onceE) B) and C)
F) A) and D)

Question 7

Which statement(s) concerning cash is (are) true?

Accepted Answer

A)  cash will always have more debits than credits
B)  cash will never have a credit balance
C)  cash is increased by debiting
D)  all of the aboveE) None of the above
F) B) and C)

Question 8

Debits will increase Unearned Revenues and Revenues.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  All accounts have a normal debit balance.
B)  All expense accounts have a normal negative balance.
C)  Accounts that have a normal debit balance will only have debit entries,never credit entries.
D)  The normal balance appears on the side of the account that also receives increase entries.E) All of the above
F) None of the above

Question 10

Revenue should be recognized when

Accepted Answer

A)  cash is received
B)  the service is performed
C)  the customer places an order
D)  the customer charges an orderE) A) and B)
F) A) and C)

Question 11

The increase side of all accounts is the normal balance.

Accepted Answer

A) True 
 B)False

Question 12

The unearned revenues account is an example of a liability.

Accepted Answer

A) True 
 B)False

Question 13

When an account receivable is collected in cash,the total assets of the business increase.

Accepted Answer

A) True 
 B)False  False

Question 14

The post reference notation used in the journal is the page number.

Accepted Answer

A) True 
 B)False

Question 15

Of the following,which istrue about assets?

Accepted Answer

A)  Assets include physical items and intangibles that have value.
B)  Assets include only physical items of value.
C)  Assets are owned solely by the stockholders of the company.
D)  Assets are the result of selling products or services to customers.E) A) and B)
F) A) and C)

Question 16

In accordance with the rules of debit and credit,which of the following is true?

Accepted Answer

A)  Debits increase assets.
B)  Credits increase assets.
C)  Debits increase both assets and retained earnings.
D)  Credits increase both assets and liabilities.E) A) and D)
F) B) and D)

Question 17

Which of the following accounts increase with a credit?

Accepted Answer

A)  capital stock,revenues,expenses
B)  assets,capital stock,revenues
C)  liabilities,capital stock,revenues
D)  retained earnings,capital stock,assetsE) A) and C)
F) None of the above

Question 18

On November 10th,JumpStart Co.provides $2,900 in services to clients.At the time of service,the clients paid $600.00 in cash and put the balance on account.
(a)Journalize this event.
(b)On November 20th,JumpStart Co.clients paid an additional $900 on their accounts due.Journalize this event.
(c)Calculate the amount of accounts receivable on November 30th.

Accepted Answer

The answer of On November 10th,JumpStart Co.provides $2,900 in services...

Question 19

The order of the flow of accounting data is (1)record in the ledger, (2)record in the journal, (3)prepare the financial statements.

Accepted Answer

A) True 
 B)False  False

Question 20

The dividends account is an example of an expense.

Accepted Answer

A) True 
 B)False  False

Exam 2: Analyzing Transactions

Which group of accounts is comprised of only assets?

Correct Answer
verified

The process of recording a transaction in the journal is called

Correct Answer
verified

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

Correct Answer
verified

Retained earnings account increases with debits.

Correct Answer
verified

The process of initially recording a business transaction is called

Correct Answer
verified

If the two totals of a trial balance are not equal,it could be due to

Correct Answer
verified

Which statement(s) concerning cash is (are) true?

Correct Answer
verified

Debits will increase Unearned Revenues and Revenues.

Correct Answer
verified

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

Correct Answer
verified

Revenue should be recognized when

Correct Answer
verified

The increase side of all accounts is the normal balance.

Correct Answer
verified

The unearned revenues account is an example of a liability.

Correct Answer
verified

When an account receivable is collected in cash,the total assets of the business increase.

Correct Answer
verified
False

The post reference notation used in the journal is the page number.

Correct Answer
verified

Of the following,which istrue about assets?

Correct Answer
verified

In accordance with the rules of debit and credit,which of the following is true?

Correct Answer
verified

Which of the following accounts increase with a credit?

Correct Answer
verified

Correct Answer
verified

The order of the flow of accounting data is (1)record in the ledger, (2)record in the journal, (3)prepare the financial statements.

Correct Answer
verified
False

The dividends account is an example of an expense.

Correct Answer
verified
False

Exam 2: Analyzing Transactions

Which group of accounts is comprised of only assets?

Correct AnswerverifiedShow Answer

The process of recording a transaction in the journal is called

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Retained earnings account increases with debits.

Correct AnswerverifiedShow Answer

The process of initially recording a business transaction is called

Correct AnswerverifiedShow Answer

If the two totals of a trial balance are not equal,it could be due to

Correct AnswerverifiedShow Answer

Which statement(s) concerning cash is (are) true?

Correct AnswerverifiedShow Answer

Debits will increase Unearned Revenues and Revenues.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Revenue should be recognized when

Correct AnswerverifiedShow Answer

The increase side of all accounts is the normal balance.

Correct AnswerverifiedShow Answer

The unearned revenues account is an example of a liability.

Correct AnswerverifiedShow Answer

When an account receivable is collected in cash,the total assets of the business increase.

Correct AnswerverifiedFalse

The post reference notation used in the journal is the page number.

Correct AnswerverifiedShow Answer

Of the following,which istrue about assets?

Correct AnswerverifiedShow Answer

In accordance with the rules of debit and credit,which of the following is true?

Correct AnswerverifiedShow Answer

Which of the following accounts increase with a credit?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The order of the flow of accounting data is (1)record in the ledger, (2)record in the journal, (3)prepare the financial statements.

Correct AnswerverifiedFalse

The dividends account is an example of an expense.

Correct AnswerverifiedFalse

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False

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False

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False