Question 1

Office supplies purchased by Ari's Alarm Service on account were returned. Which of the following entries for Ari's Alarm Service records this transaction?

Accepted Answer

A)   Cash, debit; Office Supplies, credit
B)   Office Supplies, debit; Accounts Receivable, credit
C)   Accounts Payable, debit; Office Supplies, credit
D)   Office Supplies, debit; Accounts Payable, creditE) A) and B)
F) B) and D)

Question 2

On October 17th Nikle Company purchased a building and a plot of land for $750,000. The building was valued at $500,000 while the land carried a value of $250,000. Nikle paid $300,000 down in cash and signed a notes payable for the balance. In the space below write the journal entry.

Accepted Answer

The answer of On October 17th Nikle Company purchased a...

Question 3

In which order are the accounts listed in the chart of accounts?

Accepted Answer

A)   assets, expenses, liabilities, owner's equity, revenues
B)   owners' equity, assets, liabilities, revenues, expenses
C)   assets, liabilities, owner's equity, revenues, expenses
D)   assets, liabilities, revenues, expenses, owners' equityE) B) and D)
F) A) and C)

Question 4

Withdrawals decrease owner's equity and are listed on the income statement as a deduction from revenue.

Accepted Answer

A) True 
 B)False

Question 5

The normal balance of the drawing account is a debit.

Accepted Answer

A) True 
 B)False

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 D)
F) A) and B)

Question 7

Debits will increase Unearned Revenues and Revenues.

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 PayableE) None of the above
F) All of the above

Question 9

What effect does this journal entry have on the accounts?

Accepted Answer

A)   Decrease accounts payable, increase cash
B)   Increase cash, decrease accounts payable
C)   Increase accounts payable, increase cash
D)   Decrease accounts payable, decrease cashE) All of the above
F) A) and B)

Question 10

Prepaid expenses are an example of an expense.

Accepted Answer

A) True 
 B)False

Question 11

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Accepted Answer

A)   Cash, debit; Wages Expense, credit
B)   Wages Payable, debit; Wages Expense, credit
C)   Wages Expense, debit, Cash, credit
D)   Cash, debit; Wages Payable, creditE) A) and B)
F) A) and C)

Question 12

The chart of accounts is designed to

Accepted Answer

A)   alphabetize the accounts to make reading easier for its financial statement users.
B)   analyze the accounts and organize them in order of dollar amount to simplify the accounting information for users.
C)   summarize the transactions and determine their ending balances.
D)   meet the information needs of a company and other financial statement users.E) B) and C)
F) A) and B)

Question 13

Of the following which istrue about assets?

Accepted Answer

A)   Assets include physical and intangible assets.
B)   Assets include only physical assets.
C)   Assets are owned solely by the owner of the company.
D)   Assets are the result of selling products or services to customers.E) B) and D)
F) None of the above

Question 14

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) All of the above

Question 15

What is the best explanation for this journal entry?

Accepted Answer

A)   Received cash for services performed
B)   Received cash for services to be performed in the future.
C)   Paid cash in advance for services to be done.
D)   Paid cash for services to be performed.E) A) and C)
F) B) and C)

Question 16

To determine the balance in an account, always subtract credits from debits.

Accepted Answer

A) True 
 B)False

Question 17

A group of related accounts that make up a complete unit is called a trial balance.

Accepted Answer

A) True 
 B)False

Question 18

A chart of accounts is a listing of accounts that make up the journal.

Accepted Answer

A) True 
 B)False

Question 19

Accounts payable are accounts that you expect will be paid to you.

Accepted Answer

A) True 
 B)False

Question 20

The chart of accounts classify the accounts to make identification of the accounts easier. Discuss how companies set up their chart of accounts for use in their business

Accepted Answer

A chart of accounts is set-up ...

Exam 2: Analyzing Transactions

The chart of accounts is designed to

Correct AnswerverifiedShow Answer

Debits will increase Unearned Revenues and Revenues.

Correct AnswerverifiedShow Answer

The normal balance of the drawing account is a debit.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Accounts payable are accounts that you expect will be paid to you.

Correct AnswerverifiedShow Answer

Of the following which istrue about assets?

Correct AnswerverifiedShow Answer

The chart of accounts classify the accounts to make identification of the accounts easier. Discuss how companies set up their chart of accounts for use in their business

Correct AnswerverifiedA chart of accounts is set-up ...View AnswerShow Answer

Withdrawals decrease owner's equity and are listed on the income statement as a deduction from revenue.

Correct AnswerverifiedShow Answer

To determine the balance in an account, always subtract credits from debits.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

On October 17th Nikle Company purchased a building and a plot of land for $750,000. The building was valued at $500,000 while the land carried a value of $250,000. Nikle paid $300,000 down in cash and signed a notes payable for the balance. In the space below write the journal entry.

Correct AnswerverifiedShow Answer

In which order are the accounts listed in the chart of accounts?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Prepaid expenses are an example of an expense.

Correct AnswerverifiedShow Answer

A chart of accounts is a listing of accounts that make up the journal.

Correct AnswerverifiedShow Answer

A group of related accounts that make up a complete unit is called a trial balance.

Correct AnswerverifiedShow Answer

Office supplies purchased by Ari's Alarm Service on account were returned. Which of the following entries for Ari's Alarm Service records this transaction?

Correct AnswerverifiedShow Answer

What is the best explanation for this journal entry?

Correct AnswerverifiedShow Answer

What effect does this journal entry have on the accounts?

Correct AnswerverifiedShow Answer

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A chart of accounts is set-up ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified