Question 1

Which of the following describes the classification and normal balance of the fees earned account?

Accepted Answer

A)  an asset with a credit balance
B)  a liability with a credit balance
C)  an expense with a debit balance
D)  a revenue with a credit balance

Question 2

What is the best explanation for this journal entry?

Accepted Answer

A)  Purchased supplies with cash.
B)  Returned supplies previously purchased.
C)  Purchased supplies on account.
D)  Paid accounts payable.

Question 3

Cash was paid by Ari's Alarm Service to creditors on account.Which of the following entries for Ari's Alarm Service records this transaction?

Accepted Answer

A)  Cash,debit;Retained Earnings,credit
B)  Accounts Payable,debit;Cash,credit
C)  Accounts Receivable,debit;Cash,credit
D)  Accounts Payable,debit;Account Receivable,credit

Question 4

Calculate the following:

Accepted Answer

The answer of Calculate the following:
 ...

Question 5

The cash account will always be debited

Accepted Answer

A) True 
 B)False

Question 6

Journalizing is the process of entering amounts in the ledger.

Accepted Answer

A) True 
 B)False

Question 7

The normal balance of revenue accounts is a credit.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following entries records the receipt of a utility bill from the water company?

Accepted Answer

A)  debit Utilities Expense;credit Accounts Payable
B)  debit Utilities Payable;credit Accounts Receivable
C)  debit Accounts Payable;credit Cash
D)  debit Accounts Payable;credit Utilities Payable

Question 9

The balance of the account is determined by

Accepted Answer

A)  adding all of the debits to all of the credits.
B)  always subtracting the debits from the credits.
C)  always subtracting the credits from the debits.
D)  adding all of the debits,adding all of the credits,and then subtracting the smaller sum from the larger sum.

Question 10

Record the following selected transactions for April in a two-column journal,identifying each entry by letter:

Accepted Answer

The answer of Record the following selected transactions for April...

Question 11

Which is the best explanation for this journal entry?

Accepted Answer

A)  Purchased equipment,paid cash of $5,000,with the remainder to be paid in the future.
B)  Purchased equipment,paid cash of $10,000,with the remainder to be received in the future.
C)  Purchased equipment,paid cash for the entire amount.
D)  Purchased equipment on credit.

Question 12

Accounts are records of increases and decreases in individual financial statement items.

Accepted Answer

A) True 
 B)False

Question 13

A cash payment is recorded on the cash account as a

Accepted Answer

A)  neither a debit or a credit
B)  credit
C)  debit
D)  both a debit and a credit

Question 14

The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts Receivable for $500.The correcting entry would include a:

Accepted Answer

A)  credit to Accounts Receivable for $500
B)  credit to Accounts Receivable for $1,000
C)  credit to Accounts Payable for $500
D)  credit to Accounts Payable for $1,000

Question 15

Which of the following types of accounts have a normal credit balance?

Accepted Answer

A)  assets and liabilities
B)  liabilities and expenses
C)  revenues and liabilities
D)  capital stock and dividends

Question 16

Expenses can result from

Accepted Answer

A)  paying dividends
B)  consuming services
C)  using up liabilities
D)  all of these

Question 17

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Accepted Answer

A)  Prepaid Rent,debit;Rent Revenue,credit.
B)  Cash,debit;Unearned Rent,credit.
C)  Cash,debit;Prepaid Rent,credit.
D)  Cash,debit;Rent Expense credit.

Question 18

Net income will result when

Accepted Answer

A)  revenues (credits) > expenses (debits) 
B)  revenues (credits) 
C)  expenses (credits) = revenues (debits) 
D)  expenses (debits) > revenues (credits)

Question 19

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 20

When a company issues new shares of stock,the capital stock account increases due to revenue being earned.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

The normal balance of revenue accounts is a credit.

Correct AnswerverifiedShow Answer

Accounts are records of increases and decreases in individual financial statement items.

Correct AnswerverifiedShow Answer

A cash payment is recorded on the cash account as a

Correct AnswerverifiedShow Answer

The balance of the account is determined by

Correct AnswerverifiedShow Answer

Which of the following describes the classification and normal balance of the fees earned account?

Correct AnswerverifiedShow Answer

Expenses can result from

Correct AnswerverifiedShow Answer

Record the following selected transactions for April in a two-column journal,identifying each entry by letter:

Correct AnswerverifiedShow Answer

Which is the best explanation for this journal entry?

Correct AnswerverifiedShow Answer

Which of the following entries records the receipt of a utility bill from the water company?

Correct AnswerverifiedShow Answer

What is the best explanation for this journal entry?

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Which of the following types of accounts have a normal credit balance?

Correct AnswerverifiedShow Answer

Cash was paid by Ari's Alarm Service to creditors on account.Which of the following entries for Ari's Alarm Service records this transaction?

Correct AnswerverifiedShow 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

Journalizing is the process of entering amounts in the ledger.

Correct AnswerverifiedShow Answer

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Correct AnswerverifiedShow Answer

Net income will result when

Correct AnswerverifiedShow Answer

The cash account will always be debited

Correct AnswerverifiedShow Answer

When a company issues new shares of stock,the capital stock account increases due to revenue being earned.

Correct AnswerverifiedShow Answer

The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts Receivable for $500.The correcting entry would include a:

Correct AnswerverifiedShow Answer

Calculate the following:

Correct AnswerverifiedShow Answer

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