Question 1

Which of the following business events is not a transaction?

Accepted Answer

A)   Signing a contract
B)   Paying wages
C)   Receiving goods
D)   Purchasing a serviceE) A) and D)
F) C) and D)

Question 2

Recording an account with a debit balance as a credit,or vice versa,will cause the trial balance to be out of balance by an amount that is evenly divisible by 2.

Accepted Answer

A) True 
 B)False

Question 3

When revenue has been earned,an entry can often be recorded before the related cash has been collected.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following accounts is decreased with a credit?

Accepted Answer

A)   Advertising Fees Earned
B)   Utilities Expense
C)   Common Stock
D)   Loan PayableE) C) and D)
F) A) and B)

Question 5

Which of the following accounts will not affect stockholders' equity?

Accepted Answer

A)   Rent Expense
B)   Dividends
C)   Equipment
D)   Sales RevenueE) A) and B)
F) A) and C)

Question 6

When stockholders make an investment,the Common Stock account is debited.

Accepted Answer

A) True 
 B)False

Question 7

Purchase requisitions are recognized in the accounting records.

Accepted Answer

A) True 
 B)False

Question 8

If Accounts Payable has debit postings of $34,000,credit postings of $28,000,and a normal ending balance of $12,000,what was its beginning balance?

Accepted Answer

A)   $18,000 Cr.
B)   $6,000 Cr.
C)   $18,000 Dr.
D)   $6,000 Dr.E) C) and D)
F) A) and B)

Question 9

Here is the trial balance for Sebastian Corporation:  If the trial balance showed a balance of $16,000 in the Wages Expense account and a balance of $68,000 in the Advertising Fees Earned account,what would be the amount of A?

Accepted Answer

A)   $108,000
B)   $88,000
C)   $118,000
D)   $98,000E) A) and B)
F) B) and C)

Question 10

The primary purpose of the trial balance is to test the

Accepted Answer

A)   recording of transactions.
B)   analysis of transactions.
C)   equality of debit and credit balances in the ledger.
D)   equality of debit and credit entries in the journal.E) A) and C)
F) C) and D)

Question 11

A $150 debit item is accidentally posted as a credit.The trial balance column totals will therefore differ by

Accepted Answer

A)   $0.
B)   $75.
C)   $150.
D)   $300.E) None of the above
F) B) and D)

Question 12

When the columns of the trial balance equal each other,it means that no errors have occurred in recording and posting the transactions.

Accepted Answer

A) True 
 B)False

Question 13

In the journal provided,prepare journal entries (in good form)for the following transactions.If no entry is required,write "no entry." Omit explanations.

Accepted Answer

The answer of In the journal provided,prepare journal entries (in...

Question 14

Which pair of accounts follows the rules of debit and credit in the opposite manner?

Accepted Answer

A)   Fixed Assets and Dividends
B)   Advertising Expense and Equipment
C)   Dividends and Medical Fees Earned
D)   Rent Payable and Common StockE) B) and D)
F) A) and D)

Question 15

If a debit to Supplies were posted as a credit,and a credit of the same amount to Cash were posted as a debit,what would be the effect,if any,on the two accounts and on the trial balance column totals?

Accepted Answer

The Cash account would be over...

Question 16

Which of the following accounts should be credited in a journal entry?

Accepted Answer

A)   Dividends,when it has been decreased
B)   Accounts Receivable,when it has been increased
C)   Wages Expense,when it has been increased
D)   Wages Payable,when it has been decreasedE) C) and D)
F) A) and B)

Question 17

Office supplies are classified as an asset.

Accepted Answer

A) True 
 B)False

Question 18

Match each definition with the correct term below.
-Compound entry

Accepted Answer

A)  A journal entry that involves more than two accounts.
B)  A list of account numbers with corresponding account titles.
C)  The difficulty of deciding when a business transaction should be recorded.
D)  The difference in dollars between the total debit footing and the total credit footing.
E)  The chronological accounting record sometimes known as the book of original entry.F) The basic storage units for accounting data.G) The item that is prepared at the end of the accounting period to test if total debits equals total credits.H) The process of transferring information from the journal to the ledger.I) The exchange price of an actual or potential business transaction.J) The practice of recording transactions at the exchange price at the point of recognition.K) C) and G)
L) A) and H)

Question 19

Which of the following errors will cause the trial balance to be out of balance?

Accepted Answer

A)   An entire transaction was entered in the general journal as $27 instead of $72.
B)   An entire transaction was omitted from the general journal.
C)   The balance of an account was incorrectly computed.
D)   A debit entry was entered in the wrong debit account.E) A) and B)
F) B) and C)

Question 20

Here is the trial balance for Sebastian Corporation:  On the trial balance,total assets equal

Accepted Answer

A)   $91,000.
B)   $87,000.
C)   $71,000.
D)   $51,000.E) None of the above
F) All of the above

Exam 2: Analyzing Business Transactions

When revenue has been earned,an entry can often be recorded before the related cash has been collected.

Correct AnswerverifiedShow Answer

When stockholders make an investment,the Common Stock account is debited.

Correct AnswerverifiedShow Answer

Here is the trial balance for Sebastian Corporation: If the trial balance showed a balance of $16,000 in the Wages Expense account and a balance of $68,000 in the Advertising Fees Earned account,what would be the amount of A?

Correct AnswerverifiedShow Answer

When the columns of the trial balance equal each other,it means that no errors have occurred in recording and posting the transactions.

Correct AnswerverifiedShow Answer

Which pair of accounts follows the rules of debit and credit in the opposite manner?

Correct AnswerverifiedShow Answer

Here is the trial balance for Sebastian Corporation: On the trial balance,total assets equal

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Which of the following accounts will not affect stockholders' equity?

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Purchase requisitions are recognized in the accounting records.

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Which of the following accounts should be credited in a journal entry?

Correct AnswerverifiedShow Answer

Match each definition with the correct term below. -Compound entry

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A $150 debit item is accidentally posted as a credit.The trial balance column totals will therefore differ by

Correct AnswerverifiedShow Answer

Which of the following accounts is decreased with a credit?

Correct AnswerverifiedShow Answer

If Accounts Payable has debit postings of $34,000,credit postings of $28,000,and a normal ending balance of $12,000,what was its beginning balance?

Correct AnswerverifiedShow Answer

In the journal provided,prepare journal entries (in good form)for the following transactions.If no entry is required,write "no entry." Omit explanations.

Correct AnswerverifiedShow Answer

If a debit to Supplies were posted as a credit,and a credit of the same amount to Cash were posted as a debit,what would be the effect,if any,on the two accounts and on the trial balance column totals?

Correct AnswerverifiedThe Cash account would be over...View AnswerShow Answer

Office supplies are classified as an asset.

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The primary purpose of the trial balance is to test the

Correct AnswerverifiedShow Answer

Which of the following business events is not a transaction?

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Which of the following errors will cause the trial balance to be out of balance?

Correct AnswerverifiedShow Answer

Recording an account with a debit balance as a credit,or vice versa,will cause the trial balance to be out of balance by an amount that is evenly divisible by 2.

Correct AnswerverifiedShow Answer

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The Cash account would be over...
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