Question 1

Transactions are listed in the journal chronologically.

Accepted Answer

A) True 
 B)False

Question 2

Georgia Company has a condensed income statement as shown::
  REQUIRED:
Prepare a horizontal analysis of Georgia Company's income statements. Comment on the trends, both favorable and unfavorable.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30">_TB2013_00 The trend in sales revenue is...

Question 3

Consuming goods and services in the process of generating revenues results in expenses.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

(???) + $305,000 - $...

Question 6

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equal.

Accepted Answer

A) True 
 B)False

Question 7

Accounts are classified in the ledger

Accepted Answer

A)   chronologically
B)   alphabetically
C)   in accordance with their appearance in the financial statements
D)   so that accounts used most often are listed firstE) A) and B)
F) C) and D)

Question 8

Journalizing eliminates fraud.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?

Accepted Answer

A)   a transaction was not posted
B)   a payment of $67 for insurance was posted as a debit of $76 to Prepaid Insurance and a credit of $76 to Cash
C)   a payment of $4,450 to a creditor was posted as a debit of $4,500 to Accounts Payable and a credit of $450 to Accounts Receivable
D)   cash received from customers on account was posted as a debit of $720 to Cash and a credit of $720 to Accounts PayableE) C) and D)
F) A) and C)

Question 10

Prepare a journal entry on October 12 for the fees earned on account, $14,600.

Accepted Answer

The answer of Prepare a journal entry on October 12...

Question 11

The chart of account for the Corning Company includes some of the following accounts:  On the journal page 3, the following transaction was found:
 What is the post reference that will be found on the Prepaid Insurance account?

Accepted Answer

A)   11
B)   15
C)   3
D)   NoneE) A) and C)
F) B) and D)

Question 12

The debit side of an account

Accepted Answer

A)   depends on whether the account is an asset, liability or owner's equity
B)   can be either side of the account depending on how the accountant set up the system
C)   is the right side of the account
D)   is the left side of the accountE) B) and C)
F) All of the above

Question 13

McMann Company has a condensed income statement as shown::
 Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

Accepted Answer

A)   (17,000) , (11.3%) 
B)   (15,500) , (10.3%) 
C)   ($18,000) , (10.9%) 
D)   ($15,500) , (9.4%) E) A) and B)
F) All of the above

Question 14

Journalizing is the process of entering amounts in the ledger.

Accepted Answer

A) True 
 B)False

Question 15

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

Question 16

Journalize the following selected transactions for April 2011 in a two-column journal. Journal entry explanations may be omitted.

Accepted Answer

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

Question 17

The classification and normal balance of the accounts payable account is

Accepted Answer

A)   an asset with a credit balance
B)   a liability with a credit balance
C)   owner's equity with a credit balance
D)   revenue with a credit balanceE) C) and D)
F) B) and D)

Question 18

The chart of account for the Miguel Company includes some of the following accounts:  On the journal page 5, the following transaction was found:
 What is the post reference that will be found on the Salaries Expense account?

Accepted Answer

A)   5
B)   11
C)   54
D)   NoneE) A) and D)
F) A) and C)

Question 19

A drawing account represents the amount of withdrawals made by the owner.

Accepted Answer

A) True 
 B)False

Question 20

On January 12th, JumpStart Co. purchased $870 in office supplies.
(a) Journalize this transaction as if JumpStart paid cash.
(b) (1) Journalize this transaction as if JumpStart placed it on account.
(b) (2) On January 18th, JumpStart pays the amount due. Journalize this event.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30">_TB2013_00...

Exam 2: Analyzing Transactions

Prepare a journal entry on October 12 for the fees earned on account, $14,600.

Correct AnswerverifiedShow Answer

A drawing account represents the amount of withdrawals made by the owner.

Correct AnswerverifiedShow Answer

The debit side of an account

Correct AnswerverifiedShow Answer

Journalizing eliminates fraud.

Correct AnswerverifiedShow Answer

Transactions are listed in the journal chronologically.

Correct AnswerverifiedShow Answer

Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?

Correct AnswerverifiedShow Answer

Journalize the following selected transactions for April 2011 in a two-column journal. Journal entry explanations may be omitted.

Correct AnswerverifiedShow Answer

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equal.

Correct AnswerverifiedShow Answer

The chart of account for the Corning Company includes some of the following accounts: On the journal page 3, the following transaction was found: What is the post reference that will be found on the Prepaid Insurance account?

Correct AnswerverifiedShow Answer

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

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

Consuming goods and services in the process of generating revenues results in expenses.

Correct AnswerverifiedShow Answer

Which group of accounts is comprised of only assets?

Correct AnswerverifiedShow Answer

On January 12th, JumpStart Co. purchased $870 in office supplies. (a) Journalize this transaction as if JumpStart paid cash. (b) (1) Journalize this transaction as if JumpStart placed it on account. (b) (2) On January 18th, JumpStart pays the amount due. Journalize this event.

Correct Answerverified_TB2013_00...View AnswerShow Answer

The classification and normal balance of the accounts payable account is

Correct AnswerverifiedShow Answer

Accounts are classified in the ledger

Correct AnswerverifiedShow Answer

The chart of account for the Miguel Company includes some of the following accounts: On the journal page 5, the following transaction was found: What is the post reference that will be found on the Salaries Expense account?

Correct AnswerverifiedShow Answer

McMann Company has a condensed income statement as shown:: Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

Correct AnswerverifiedShow Answer

Georgia Company has a condensed income statement as shown:: REQUIRED: Prepare a horizontal analysis of Georgia Company's income statements. Comment on the trends, both favorable and unfavorable.

Correct Answerverified_TB2013_00 The trend in sales revenue is...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Journalizing is the process of entering amounts in the ledger.

Correct AnswerverifiedShow Answer

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(???) + $305,000 - $...
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_TB2013_00...
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_TB2013_00 The trend in sales revenue is...
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