Question 1

The normal balance of any account is the

Accepted Answer

A)   left side.
B)   right side.
C)   side which increases that account.
D)   side which decreases that account.E) B) and C)
F) A) and B)

Question 2

The final step in the recording process is to

Accepted Answer

A)   analyze each transaction.
B)   enter the transaction in a journal.
C)   prepare a trial balance.
D)   transfer journal information to ledger accounts.E) None of the above
F) A) and D)

Question 3

The left side of an account is

Accepted Answer

A)   blank.
B)   a description of the account.
C)   the debit side.
D)   the balance of the account.E) A) and D)
F) A) and C)

Question 4

Debit and credit can be interpreted to mean increase and decrease respectively.

Accepted Answer

A) True 
 B)False

Question 5

A credit to a liability account

Accepted Answer

A)   indicates an increase in the amount owed to creditors.
B)   indicates a decrease in the amount owed to creditors.
C)   is an error.
D)   must be accompanied by a debit to an asset account.E) A) and D)
F) A) and C)

Question 6

The final step in the recording process is to transfer the journal information to the

Accepted Answer

A)   trial balance.
B)   financial statements.
C)   ledger.
D)   file cabinets.E) A) and D)
F) C) and D)

Question 7

In the first month of operations the total of the debit entries to the cash account amounted to $1400 and the total of the credit entries to the cash account amounted to $800. The cash account has a(n)

Accepted Answer

A)   $800 credit balance.
B)   $1400 debit balance.
C)   $600 debit balance.
D)   $600 credit balance.E) A) and B)
F) None of the above

Question 8

The chart of accounts is a special ledger used in accounting systems.

Accepted Answer

A) True 
 B)False

Question 9

When an owner makes a withdrawal

Accepted Answer

A)   it doesn't have to be cash it could be another asset.
B)   the owner's drawings account will be increased with a credit.
C)   the owner's capital account will be directly increased with a debit.
D)   the owner's drawings account will be decreased with a debit.E) A) and B)
F) C) and D)

Question 10

Prepare a trial balance from the ledger accounts of Black Diamond Express as of January 31 2016. 
$\begin{array} { l r l r } 
\text { Accounts Payable } & \$ 1,100 & \text { Rent Expense } & \$ 500 \
\text { Accounts Receivable } & 1,700 & \text { Service Revenue } & 3,000 \
\text { Cash } & 1,400 & \text { Supplies } & 200 \
\text { Owner's Capital } & 2,000 & \text { Salaries and Wages Expense } & 1,300 \
\text { Owner's Drawings } & 1,000 & &
\end{array}$

Accepted Answer

None...

Question 11

Match between columns
                        Premises:  This step is called posting.
 Business documents are examined to determine the effects of transactions on the accounts.
 This step is called journalizing.

Accepted Answer

The Answer of Analyze each transaction and Enter each transaction is...

Question 12

A credit is not the normal balance for which account listed below?

Accepted Answer

A)   Capital account
B)   Revenue account
C)   Liability account
D)   Owner's Drawings accountE) C) and D)
F) A) and C)

Question 13

If the sum of the debit column equals the sum of the credit column in a trial balance it indicates

Accepted Answer

A)   no errors have been made.
B)   no errors can be discovered.
C)   that all accounts reflect correct balances.
D)   the mathematical equality of the accounting equation.E) All of the above
F) A) and B)

Question 14

At December 1 2016 Dubois Company's accounts receivable balance was $1300. During December Dubois had credit sales of $7400 and collected accounts receivable of $6000. At December 31 2016 the accounts receivable balance is

Accepted Answer

A)   $100 debit.
B)   $2700 debit.
C)   $100 credit.
D)   $2700 credit.E) B) and C)
F) B) and D)

Question 15

Qwik Company showed the following balances at the end of its first year:   Cash $8,700 Prepaid insurance 9,400 Accounts receivable 7,000 Accounts payable 5,800 Notes payable 9,400 Owner’s Capital 2,300 Owner’s Drawings 1,400 Revenues 44,000 Expenses 35,000\begin{array} { l r } 	ext { Cash } & \$ 8,700 \	ext { Prepaid insurance } & 9,400 \	ext { Accounts receivable } & 7,000 \	ext { Accounts payable } & 5,800 \	ext { Notes payable } & 9,400 \	ext { Owner&#x27;s Capital } & 2,300 \	ext { Owner&#x27;s Drawings } & 1,400 \	ext { Revenues } & 44,000 \	ext { Expenses } & 35,000\end{array} Cash  Prepaid insurance  Accounts receivable  Accounts payable  Notes payable  Owner’s Capital  Owner’s Drawings  Revenues  Expenses ​$8,7009,4007,0005,8009,4002,3001,40044,00035,000​  What did Qwik Company show as total credits on its trial balance?

Accepted Answer

A)   $52400
B)   $61500
C)   $62900
D)   $70900 E) None of the above
F) A) and C)

Question 16

When journalizing the reference column is

Accepted Answer

A)   left blank.
B)   used to reference the source document.
C)   used to reference the journal page.
D)   used to reference the financial statements.E) A) and D)
F) B) and C)

Question 17

During February 2016 its first month of operations the owner of Solcist Co. invested cash of $50000. Solcist had cash revenues of $16000 and paid expenses of $21000. Assuming no other transactions impacted the cash account what is the balance in Cash at February 29?

Accepted Answer

A)   $5000 credit
B)   $5000 debit
C)   $45000 debit
D)   $55000 debitE) B) and C)
F) All of the above

Question 18

For each of the following transactions of Neon Garden identify the account to be debited and the account to be credited.
1. Purchased 18-month insurance policy for cash.
2. Paid weekly payroll.
3. Purchased supplies on account.
4. Received utility bill to be paid at later date.

Accepted Answer

None...

Question 19

Business documents can provide evidence that a transaction has occurred.

Accepted Answer

A) True 
 B)False

Question 20

The drawing account is a subdivision of the owner's capital account and appears as an expense on the income statement.

Accepted Answer

A) True 
 B)False

Exam 2: The Recording Process

The chart of accounts is a special ledger used in accounting systems.

Correct Answer
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Correct Answer
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None...
View Answer

The normal balance of any account is the

Correct Answer
verified

In the first month of operations the total of the debit entries to the cash account amounted to $1400 and the total of the credit entries to the cash account amounted to $800. The cash account has a(n)

Correct Answer
verified

For each of the following transactions of Neon Garden identify the account to be debited and the account to be credited. 1. Purchased 18-month insurance policy for cash. 2. Paid weekly payroll. 3. Purchased supplies on account. 4. Received utility bill to be paid at later date.

Correct Answer
verified
None...
View Answer

The final step in the recording process is to transfer the journal information to the

Correct Answer
verified

The drawing account is a subdivision of the owner's capital account and appears as an expense on the income statement.

Correct Answer
verified

Correct Answer
verified

The left side of an account is

Correct Answer
verified

Debit and credit can be interpreted to mean increase and decrease respectively.

Correct Answer
verified

During February 2016 its first month of operations the owner of Solcist Co. invested cash of $50000. Solcist had cash revenues of $16000 and paid expenses of $21000. Assuming no other transactions impacted the cash account what is the balance in Cash at February 29?

Correct Answer
verified

Business documents can provide evidence that a transaction has occurred.

Correct Answer
verified

Match each of the following statements by the basic step in the recording process described.

At December 1 2016 Dubois Company's accounts receivable balance was $1300. During December Dubois had credit sales of $7400 and collected accounts receivable of $6000. At December 31 2016 the accounts receivable balance is

Correct Answer
verified

When an owner makes a withdrawal

Correct Answer
verified

A credit to a liability account

Correct Answer
verified

A credit is not the normal balance for which account listed below?

Correct Answer
verified

If the sum of the debit column equals the sum of the credit column in a trial balance it indicates

Correct Answer
verified

When journalizing the reference column is

Correct Answer
verified

The final step in the recording process is to

Correct Answer
verified

Exam 2: The Recording Process

The chart of accounts is a special ledger used in accounting systems.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNone...View AnswerShow Answer

The normal balance of any account is the

Correct AnswerverifiedShow Answer

In the first month of operations the total of the debit entries to the cash account amounted to $1400 and the total of the credit entries to the cash account amounted to $800. The cash account has a(n)

Correct AnswerverifiedShow Answer

For each of the following transactions of Neon Garden identify the account to be debited and the account to be credited. 1. Purchased 18-month insurance policy for cash. 2. Paid weekly payroll. 3. Purchased supplies on account. 4. Received utility bill to be paid at later date.

Correct AnswerverifiedNone...View AnswerShow Answer

The final step in the recording process is to transfer the journal information to the

Correct AnswerverifiedShow Answer

The drawing account is a subdivision of the owner's capital account and appears as an expense on the income statement.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The left side of an account is

Correct AnswerverifiedShow Answer

Debit and credit can be interpreted to mean increase and decrease respectively.

Correct AnswerverifiedShow Answer

During February 2016 its first month of operations the owner of Solcist Co. invested cash of $50000. Solcist had cash revenues of $16000 and paid expenses of $21000. Assuming no other transactions impacted the cash account what is the balance in Cash at February 29?

Correct AnswerverifiedShow Answer

Business documents can provide evidence that a transaction has occurred.

Correct AnswerverifiedShow Answer

Match each of the following statements by the basic step in the recording process described.

At December 1 2016 Dubois Company's accounts receivable balance was $1300. During December Dubois had credit sales of $7400 and collected accounts receivable of $6000. At December 31 2016 the accounts receivable balance is

Correct AnswerverifiedShow Answer

When an owner makes a withdrawal

Correct AnswerverifiedShow Answer

A credit to a liability account

Correct AnswerverifiedShow Answer

A credit is not the normal balance for which account listed below?

Correct AnswerverifiedShow Answer

If the sum of the debit column equals the sum of the credit column in a trial balance it indicates

Correct AnswerverifiedShow Answer

When journalizing the reference column is

Correct AnswerverifiedShow Answer

The final step in the recording process is to

Correct AnswerverifiedShow Answer

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verified

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None...
View Answer

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None...
View Answer

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