Question 1

The chart of accounts for the Corning Corporation includes the following:  On journal page 3, the following transaction was found:
 What are the posting references that will be found in the journal entry?

Accepted Answer

A)   15 and 11, respectively
B)   11 and 15, respectively
C)   11 and 55, respectively
D)   3 onlyE) A) and B)
F) B) and C)

Question 2

All nine transactions for Dalton Survey Company for September, the first month of operations, are recorded in the following T accounts:
      Indicate the following for each debit and each credit:
  Present your answers in the following form:

Accepted Answer

The answer of All nine transactions for Dalton Survey Company...

Question 3

Scott, Inc. sold $65,000 of stock. How would this transaction be entered in the journal?

Accepted Answer

A)   Cash 65,000 Capital Stock 65,000Sold stock for cash.
B)   Cash 65,000 Capital Stock 65,000Sold stock for cash
C)   Capital Stock 65,000 Cash 65,000Sold stock for cash .
D)   Capital Stock 65,000 Cash 65,000Sold stock for cash.E) All of the above
F) A) and B)

Question 4

The process of transferring the data from the journal to the ledger accounts is posting.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A chart of accounts is setup by assignin...

Question 6

Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following:

Accepted Answer

The answer of Selected accounts from the ledger of Garrison...

Question 7

Revenue should be recognized when

Accepted Answer

A)   cash is received
B)   the service is performed
C)   the customer places an order
D)   the customer charges an orderE) B) and C)
F) None of the above

Question 8

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) A) and C)
F) None of the above

Question 9

For a month's transactions for a typical medium-sized business, the accounts payable account is likely to have only credit entries.

Accepted Answer

A) True 
 B)False

Question 10

Calculate the following:

Accepted Answer

The answer of Calculate the following:
 ...

Question 11

Which of the following applications of the rules of debit and credit is true?

Accepted Answer

A)   decrease Prepaid Insurance with a credit and the normal balance is a credit
B)   increase Accounts Payable with a credit and the normal balance is a debit
C)   increase Supplies Expense with a debit and the normal balance is a debit
D)   decrease Cash with a debit and the normal balance is a creditE) B) and C)
F) A) and D)

Question 12

The chart of accounts for the Corning Corporation includes the following:  On journal page 3, the following transaction was found:
 What is the posting reference that will be found in the Cash account?

Accepted Answer

A)   11
B)   15
C)   3
D)   none of theseE) A) and D)
F) A) and C)

Question 13

Analyze the following transactions as to their effect on the accounting equation.
  Some of the possible effects of a transaction on the accounting equation are listed below:
  Put the appropriate letter next to each transaction.

Accepted Answer

The answer of Analyze the following transactions as to their...

Question 14

Which of the following will decrease retained earnings?

Accepted Answer

A)   Supplies are purchased on account.
B)   Dividends are declared and paid.
C)   Cash is received from customers.
D)   Payment is made on an accounts payable.E) A) and C)
F) A) and B)

Question 15

Which of the following entries records the payment of an account payable?

Accepted Answer

A)   debit Cash; credit Accounts Payable
B)   debit Accounts Receivable; credit Cash
C)   debit Cash; credit Supplies Expense
D)   debit Accounts Payable; credit CashE) B) and C)
F) A) and D)

Question 16

Retained earnings will be reduced by the amount in the dividends account.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following accounts increase with a credit?

Accepted Answer

A)   capital stock, revenues, expenses
B)   assets, capital stock, revenues
C)   liabilities, capital stock, revenues
D)   retained earnings, capital stock, assetsE) B) and C)
F) A) and D)

Question 18

An account has three parts to it; a title, an increase side, and a decrease side.

Accepted Answer

A) True 
 B)False

Question 19

Once journal entries are posted to accounts, each account will show a new balance after each entry.

Accepted Answer

A) True 
 B)False

Question 20

The T account got its name because it resembles the letter "T."

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

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

Correct AnswerverifiedA chart of accounts is setup by assignin...View AnswerShow Answer

Analyze the following transactions as to their effect on the accounting equation. Some of the possible effects of a transaction on the accounting equation are listed below: Put the appropriate letter next to each transaction.

Correct AnswerverifiedShow Answer

Scott, Inc. sold $65,000 of stock. How would this transaction be entered in the journal?

Correct AnswerverifiedShow Answer

Which of the following accounts increase with a credit?

Correct AnswerverifiedShow Answer

An account has three parts to it; a title, an increase side, and a decrease side.

Correct AnswerverifiedShow Answer

All nine transactions for Dalton Survey Company for September, the first month of operations, are recorded in the following T accounts: Indicate the following for each debit and each credit: Present your answers in the following form:

Correct AnswerverifiedShow Answer

Which of the following entries records the payment of an account payable?

Correct AnswerverifiedShow Answer

For a month's transactions for a typical medium-sized business, the accounts payable account is likely to have only credit entries.

Correct AnswerverifiedShow Answer

The T account got its name because it resembles the letter "T."

Correct AnswerverifiedShow Answer

The chart of accounts for the Corning Corporation includes the following: On journal page 3, the following transaction was found: What are the posting references that will be found in the journal entry?

Correct AnswerverifiedShow Answer

Retained earnings will be reduced by the amount in the dividends account.

Correct AnswerverifiedShow Answer

The chart of accounts for the Corning Corporation includes the following: On journal page 3, the following transaction was found: What is the posting reference that will be found in the Cash account?

Correct AnswerverifiedShow Answer

Which of the following will decrease retained earnings?

Correct AnswerverifiedShow Answer

Calculate the following:

Correct AnswerverifiedShow Answer

Once journal entries are posted to accounts, each account will show a new balance after each entry.

Correct AnswerverifiedShow Answer

The process of transferring the data from the journal to the ledger accounts is posting.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Revenue should be recognized when

Correct AnswerverifiedShow Answer

Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following:

Correct AnswerverifiedShow Answer

Which of the following applications of the rules of debit and credit is true?

Correct AnswerverifiedShow Answer

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A chart of accounts is setup by assignin...
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