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Exam 2: Analyzing and Reporting Transactions

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Question 51

True/False

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Cash withdrawn by the owner of an unincorporated business in the form of a monthly salary should be treated as an expense of the business.

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Question 52

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A debit entry:

A) Increases asset and expense accounts.
B) Decreases liability and equity accounts.
C) Increases the owner's withdrawals account.
D) Decreases revenue accounts.
E) All of these answers are correct.

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Question 53

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During the month of November,Cornish Company had cash receipts of $3,500 and paid out $1,000 for expenses.The November 30^th cash balance was $4,300.What was the cash balance on November 1?

A book of original entry is:

The right side of a T-account is a(n) :

Credits to accounts are always increases.

Increases in assets are _______________ to asset accounts,and increases in liabilities are _______________ to liability accounts.

A trial balance that is in balance is proof that no errors were made in journalizing the transactions,posting to the ledger,and preparing the trial balance.

The Shreddy Company receives a $3,200 bill from a supplier for delivery services rendered.Set up two or more T-accounts below and show how this transaction would be recorded directly in those accounts.

On June 20,2015,Lucie Majeau invested the following assets in a new sole proprietorship: cash,$12,000; office equipment,$6,000; land,$100,000; building,$115,000.Majeau owes the bank a $25,000 note payable that is secured by the land and building.Prepare the general journal entry to record Majeau's investments in the new business.

Of the following accounts,the one that normally has a credit balance is:

A business paid $2,500 to satisfy a previously recorded account payable.Set up two or more T-accounts below and show how this transaction would be recorded directly in those accounts.

The following transactions occurred during July for Hurley Services: How much revenue was earned in July?

The most flexible type of journal that can be used to record any kind of transaction is called a:

Since all figures are eventually posted to the ledger,the posting reference column in a journal is not necessary.

A credit is used to record:

Of the following accounts,the one that normally has a debit balance is:

The process of copying journal information to the ledger is called:

A simple account form widely used in accounting education to illustrate how debits and credits work is called a:

Asset accounts normally have credit balances and expense accounts normally have debit balances.