Question 1

FastForward purchased $25,000 of equipment for cash.The Equipment asset account is _______________ for $25,000 and the cash account is _______________ for $25,000.

Accepted Answer

answers need to app...

Question 2

An income statement reports the revenues earned less expenses incurred by a business over a period of time.

Accepted Answer

A) True 
 B)False

Question 3

The chart of accounts is a list of all the accounts used by a company and includes an identification number assigned to each account.

Accepted Answer

A) True 
 B)False

Question 4

The process of transferring general journal information to the ledger is:

Accepted Answer

A)  Double-entry accounting.
B)  Posting.
C)  Balancing an account.
D)  Journalizing.
E)  Not required unless debits do not equal credits.

Question 5

___________________ are promises of payment from customers to sellers.

Accepted Answer

The answer of ___________________ are promises of payment from customers...

Question 6

Credits always increase account balances.

Accepted Answer

A) True 
 B)False

Question 7

If cash was incorrectly debited for $100 instead of correctly credited for $100,the cash account is out of balance by $100.

Accepted Answer

A) True 
 B)False

Question 8

The general journal provides a place for recording all of the following except:

Accepted Answer

A)  The transaction date.
B)  The names of the accounts involved.
C)  The amount of each debit and credit.
D)  An explanation of the transaction.
E)  The balance in each account.

Question 9

An account format that is similar to a T-account in that it has columns for debits and credits,but that is different in that it has columns for transaction date,explanation,and the account balance is the _____________________.

Accepted Answer

balance co...

Question 10

The balance sheet provides a link between beginning and ending income statements.

Accepted Answer

A) True 
 B)False

Question 11

The numbering system used in a company's chart of accounts:

Accepted Answer

A)  Is the same for all companies.
B)  Is determined by generally accepted accounting principles.
C)  Depends on the source documents used in the accounting process.
D)  Typically begins with balance sheet accounts.
E)  Typically begins with income statement accounts.

Question 12

For each of the following (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

Accepted Answer

The answer of For each of the following (1)identify the...

Question 13

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is:

Accepted Answer

A)  Recorded as a debit to an unearned revenue account.
B)  Recorded as a debit to a prepaid expense account.
C)  Recorded as a credit to an unearned revenue account.
D)  Recorded as a credit to a prepaid expense account.
E)  Not recorded in the accounting records until the earnings process is complete.

Question 14

On September 30,the Cash account of Value Company had a normal balance of $5,000.During September,the account was debited for a total of $12,200 and credited for a total of $11,500.What was the balance in the Cash account at the beginning of September?

Accepted Answer

A)  A $0 balance.
B)  A $4,300 debit balance.
C)  A $4,300 credit balance.
D)  A $5,700 debit balance.
E)  A $5,700 credit balance.

Question 15

A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n) :

Accepted Answer

A)  Account.
B)  Trial balance.
C)  Journal.
D)  T-account.
E)  Balance column account.

Question 16

Debit means the right side of an account.

Accepted Answer

A) True 
 B)False

Question 17

Zed Bennett opened an art gallery and as a dealer completed these transactions:
1) Started the gallery,Artery,by investing $40,000 cash and equipment valued at $18,000.
2) Purchased $70 of office supplies on credit.
3) Paid $1,200 cash for the receptionist's salary.
4) Sold a painting for an artist and collected a $4,500 cash commission on the sale.
5) Completed an art appraisal and billed the client $200.
What was the balance of the cash account after these transactions were posted?

Accepted Answer

A)  $12,230.
B)  $12,430.
C)  $43,300.
D)  $43,430.
E)  $61,430.

Question 18

A trial balance taken at year-end showed total credits exceed total debits by $4,950.This discrepancy could have been caused by:

Accepted Answer

A)  An error in the general journal where a $4,950 increase in Accounts Receivable was recorded as an increase in Cash.
B)  A net income of $4,950.
C)  The balance of $49,500 in Accounts Payable being entered in the trial balance as $4,950.
D)  The balance of $5,500 in the Office Equipment account being entered on the trial balance as a debit of $550.
E)  An error in the general journal where a $4,950 increase in Accounts Payable was recorded as a decrease in Accounts Payable.

Question 19

If the Debit and Credit column totals of a trial balance are equal,then:

Accepted Answer

A)  All transactions have been recorded correctly.
B)  All entries from the journal have been posted to the ledger correctly.
C)  All ledger account balances are correct.
D)  The total debit entries and total credit entries are equal.
E)  The balance sheet would be correct.

Question 20

A record of the increases and decreases in a specific asset,liability,equity,revenue,or expense is a(n) :

Accepted Answer

A)  Journal.
B)  Posting.
C)  Trial balance.
D)  Account.
E)  Chart of accounts.

Exam 2: Analyzing and Recording Transactions

For each of the following (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

Correct Answer
verified

An account format that is similar to a T-account in that it has columns for debits and credits,but that is different in that it has columns for transaction date,explanation,and the account balance is the _____________________.

Correct Answer
verified
balance co...
View Answer

Correct Answer
verified

FastForward purchased $25,000 of equipment for cash.The Equipment asset account is _ for $25,000 and the cash account is _ for $25,000.

Correct Answer
verified
answers need to app...
View Answer

An income statement reports the revenues earned less expenses incurred by a business over a period of time.

Correct Answer
verified

The balance sheet provides a link between beginning and ending income statements.

Correct Answer
verified

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is:

Correct Answer
verified

Credits always increase account balances.

Correct Answer
verified

If cash was incorrectly debited for $100 instead of correctly credited for $100,the cash account is out of balance by $100.

Correct Answer
verified

The numbering system used in a company's chart of accounts:

Correct Answer
verified

If the Debit and Credit column totals of a trial balance are equal,then:

Correct Answer
verified

The general journal provides a place for recording all of the following except:

Correct Answer
verified

A trial balance taken at year-end showed total credits exceed total debits by $4,950.This discrepancy could have been caused by:

Correct Answer
verified

___________________ are promises of payment from customers to sellers.

Correct Answer
verified

A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n) :

Correct Answer
verified

On September 30,the Cash account of Value Company had a normal balance of $5,000.During September,the account was debited for a total of $12,200 and credited for a total of $11,500.What was the balance in the Cash account at the beginning of September?

Correct Answer
verified

A record of the increases and decreases in a specific asset,liability,equity,revenue,or expense is a(n) :

Correct Answer
verified

Debit means the right side of an account.

Correct Answer
verified

The chart of accounts is a list of all the accounts used by a company and includes an identification number assigned to each account.

Correct Answer
verified

The process of transferring general journal information to the ledger is:

Correct Answer
verified

Exam 2: Analyzing and Recording Transactions

For each of the following (1)identify the type of account as an asset,liability,equity,revenue,or expense,and (2)identify the normal balance of the account.

Correct AnswerverifiedShow Answer

An account format that is similar to a T-account in that it has columns for debits and credits,but that is different in that it has columns for transaction date,explanation,and the account balance is the _____________________.

Correct Answerverifiedbalance co...View AnswerShow Answer

Correct AnswerverifiedShow Answer

FastForward purchased $25,000 of equipment for cash.The Equipment asset account is _______________ for $25,000 and the cash account is _______________ for $25,000.

Correct Answerverified answers need to app...View AnswerShow Answer

An income statement reports the revenues earned less expenses incurred by a business over a period of time.

Correct AnswerverifiedShow Answer

The balance sheet provides a link between beginning and ending income statements.

Correct AnswerverifiedShow Answer

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is:

Correct AnswerverifiedShow Answer

Credits always increase account balances.

Correct AnswerverifiedShow Answer

If cash was incorrectly debited for $100 instead of correctly credited for $100,the cash account is out of balance by $100.

Correct AnswerverifiedShow Answer

The numbering system used in a company's chart of accounts:

Correct AnswerverifiedShow Answer

If the Debit and Credit column totals of a trial balance are equal,then:

Correct AnswerverifiedShow Answer

The general journal provides a place for recording all of the following except:

Correct AnswerverifiedShow Answer

A trial balance taken at year-end showed total credits exceed total debits by $4,950.This discrepancy could have been caused by:

Correct AnswerverifiedShow Answer

___________________ are promises of payment from customers to sellers.

Correct AnswerverifiedShow Answer

A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n) :

Correct AnswerverifiedShow Answer

On September 30,the Cash account of Value Company had a normal balance of $5,000.During September,the account was debited for a total of $12,200 and credited for a total of $11,500.What was the balance in the Cash account at the beginning of September?

Correct AnswerverifiedShow Answer

A record of the increases and decreases in a specific asset,liability,equity,revenue,or expense is a(n) :

Correct AnswerverifiedShow Answer

Debit means the right side of an account.

Correct AnswerverifiedShow Answer

The chart of accounts is a list of all the accounts used by a company and includes an identification number assigned to each account.

Correct AnswerverifiedShow Answer

The process of transferring general journal information to the ledger is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
balance co...
View Answer

Correct Answer
verified

FastForward purchased $25,000 of equipment for cash.The Equipment asset account is _ for $25,000 and the cash account is _ for $25,000.

Correct Answer
verified
answers need to app...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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Correct Answer
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Correct Answer
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