Question 1

Liabilities are debts owed by the business entity.

Accepted Answer

A) True 
 B)False

Question 2

Accepted Answer

The answer of  ...

Question 3

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

The answer of On January 12th, JumpStart Co. purchased $870...

Question 4

A debit balance in which of the following accounts would indicate a likely error?

Accepted Answer

A)   Salaries Expense
B)   Notes Payable
C)   Dividends
D)   Supplies

Question 5

McMann Company has condensed income statements as follows:
  REQUIRED:
Prepare a horizontal analysis of McMann 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"> While the trend in sales reve...

Question 6

Which of the following entries records the collection of cash from cash customers?

Accepted Answer

A)   Fees Earned, debit; Cash, credit
B)   Fees Earned, debit; Accounts Receivable, credit
C)   Cash, debit; Fees Earned, credit
D)   Accounts Receivable, debit; Fees Earned, credit

Question 7

A list of the accounts is called

Accepted Answer

A)   ledger
B)   chart of accounts
C)   T account
D)   debit

Question 8

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 cash

Question 9

Randomly listed below are the steps for preparing a trial balance:  What is the proper order of these steps?

Accepted Answer

A)   (3) , (2) , (4) , (1) 
B)   (2) , (3) , (4) , (1) 
C)   (3) , (2) , (1) , (4) 
D)   (4) , (3) , (2) , (1)

Question 10

What effect does this journal entry have on the accounts?

Accepted Answer

A)   Increase to Cash and increase to Land
B)   Increase to Land and decrease to Cash
C)   Decrease to Cash and decrease to Land
D)   Increase to Cash and decrease to Land

Question 11

Supplies purchased on account were incorrectly recorded as Office Equipment. The correcting entry would be

Accepted Answer

A)   Supplies, debit; Office Equipment, credit.
B)   Accounts Receivable, debit; Supplies, credit.
C)   Office Equipment, debit; Supplies Expense, credit.
D)   Supplies, debit; Accounts Payable, credit.

Question 12

Organize the following accounts into the usual sequence of a chart of accounts.
Miscellaneous Expense
Accounts Payable
Retained Earnings
Accounts Receivable
Cash
Capital Stock
Fees Earned
Prepaid Rent
Salaries Expense
Unearned Revenue
Dividends

Accepted Answer

Cash
Accounts Receivable
Prepa...

Question 13

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

Accepted Answer

A) True 
 B)False

Question 14

On January 1, 2010, Cary Parsons established a catering service. Listed below are accounts she would like to open in the general ledger. List the accounts in the order in which they should appear in the ledger and propose a two-digit account numbering scheme that is consistent with the rules of a proper chart of accounts.

Accepted Answer

11 Cash
12 Accounts Receivable
13 Suppli...

Question 15

When an accounts payable account is paid in cash, company expenses increase.

Accepted Answer

A) True 
 B)False

Question 16

Expenses can result from

Accepted Answer

A)   paying dividends
B)   consuming services
C)   using up liabilities
D)   all of these

Question 17

The process of recording a transaction in the journal is called journalizing.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following errors 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 $42 to Prepaid Insurance and a credit of $42 to Cash.
C)   A payment of $1,311 to a creditor was posted as a debit of $3,111 to Accounts Payable and a debit of $311 to Accounts Receivable.
D)   Cash received from customers on account was posted as a debit of $680 to Cash and a credit of $680 to Accounts Payable.

Question 19

Which of the following entries records the receipt of cash from patients on account?

Accepted Answer

A)   Accounts Payable, debit; Fees Earned, credit
B)   Accounts Receivable, debit; Fees Earned, credit
C)   Accounts Receivable, debit; Cash, credit
D)   Cash, debit; Accounts Receivable, credit

Question 20

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)   an asset with a debit balance
D)   an expense with a debit balance

Exam 2: Analyzing Transactions

The process of recording a transaction in the journal is called journalizing.

Correct Answer
verified

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 Answer
verified

Correct Answer
verified
11 Cash
12 Accounts Receivable
13 Suppli...
View Answer

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

Correct Answer
verified

What effect does this journal entry have on the accounts?

Correct Answer
verified

Randomly listed below are the steps for preparing a trial balance: What is the proper order of these steps?

Correct Answer
verified

Which of the following entries records the receipt of cash from patients on account?

Correct Answer
verified

A debit balance in which of the following accounts would indicate a likely error?

Correct Answer
verified

Supplies purchased on account were incorrectly recorded as Office Equipment. The correcting entry would be

Correct Answer
verified

Which of the following errors would cause the trial balance totals to be unequal?

Correct Answer
verified

Correct Answer
verified

A list of the accounts is called

Correct Answer
verified

The classification and normal balance of the accounts payable account is

Correct Answer
verified

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

Correct Answer
verified
While the trend in sales reve...
View Answer

When an accounts payable account is paid in cash, company expenses increase.

Correct Answer
verified

What effect does this journal entry have on the accounts?

Correct Answer
verified

Liabilities are debts owed by the business entity.

Correct Answer
verified

Which of the following entries records the collection of cash from cash customers?

Correct Answer
verified

Organize the following accounts into the usual sequence of a chart of accounts. Miscellaneous Expense Accounts Payable Retained Earnings Accounts Receivable Cash Capital Stock Fees Earned Prepaid Rent Salaries Expense Unearned Revenue Dividends

Correct Answer
verified
Cash
Accounts Receivable
Prepa...
View Answer

Expenses can result from

Correct Answer
verified

Exam 2: Analyzing Transactions

The process of recording a transaction in the journal is called journalizing.

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 AnswerverifiedShow Answer

Correct Answerverified11 Cash12 Accounts Receivable13 Suppli...View AnswerShow Answer

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

Correct AnswerverifiedShow Answer

What effect does this journal entry have on the accounts?

Correct AnswerverifiedShow Answer

Randomly listed below are the steps for preparing a trial balance: What is the proper order of these steps?

Correct AnswerverifiedShow Answer

Which of the following entries records the receipt of cash from patients on account?

Correct AnswerverifiedShow Answer

A debit balance in which of the following accounts would indicate a likely error?

Correct AnswerverifiedShow Answer

Supplies purchased on account were incorrectly recorded as Office Equipment. The correcting entry would be

Correct AnswerverifiedShow Answer

Which of the following errors would cause the trial balance totals to be unequal?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A list of the accounts is called

Correct AnswerverifiedShow Answer

The classification and normal balance of the accounts payable account is

Correct AnswerverifiedShow Answer

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

Correct Answerverified While the trend in sales reve...View AnswerShow Answer

When an accounts payable account is paid in cash, company expenses increase.

Correct AnswerverifiedShow Answer

What effect does this journal entry have on the accounts?

Correct AnswerverifiedShow Answer

Liabilities are debts owed by the business entity.

Correct AnswerverifiedShow Answer

Which of the following entries records the collection of cash from cash customers?

Correct AnswerverifiedShow Answer

Organize the following accounts into the usual sequence of a chart of accounts. Miscellaneous Expense Accounts Payable Retained Earnings Accounts Receivable Cash Capital Stock Fees Earned Prepaid Rent Salaries Expense Unearned Revenue Dividends

Correct AnswerverifiedCashAccounts ReceivablePrepa...View AnswerShow Answer

Expenses can result from

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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11 Cash
12 Accounts Receivable
13 Suppli...
View Answer

Correct Answer
verified

Correct Answer
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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
While the trend in sales reve...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Cash
Accounts Receivable
Prepa...
View Answer

Correct Answer
verified