Question 1

A business paid $100 to Karen Smith (the owner of the business)for her personal use.Set up two or more T-accounts below and show how this transaction would be recorded directly in those accounts.

Accepted Answer

The answer of A business paid $100 to Karen Smith...

Question 2

A $130 credit to Office Equipment was credited to Sales by mistake.By what amounts are the accounts under- or overstated as a result of this error?

Accepted Answer

A)   Office Equipment,understated $130; Sales,overstated $130.
B)   Office Equipment,understated $260; Sales,overstated $130.
C)   Office Equipment,overstated $130; Sales,overstated $130.
D)   Office Equipment,overstated $130; Sales,understated $130.
E)   Office Equipment,overstated $260; Sales,understated $130.

Question 3

Posting is the process of copying the debit and credit amounts from a journal to the ledger accounts.

Accepted Answer

A) True 
 B)False

Question 4

Welder Company purchases supplies from Plumber Company on account.The entry for this transaction will include a:

Accepted Answer

A)   Debit to Accounts Payable for Welder Company.
B)   Debit to Accounts Receivable for Welder Company.
C)   Debit to Accounts Receivable for Plumber Company.
D)   Credit to Accounts Payable for Plumber Company.
E)   Credit to Accounts Receivable for Welder Company.

Question 5

In which of the following situations would the trial balance not balance?

Accepted Answer

A)   A $1,000 collection of an account receivable was incorrectly posted as a debit to Accounts Receivable and a credit to Cash.
B)   The purchase of office supplies on account for $3,250 was incorrectly recorded in the journal as $2,350.
C)   $50 cash receipt for the performance of a service was not recorded.
D)   The purchase of office equipment for $1,200 was posted as a debit to Office Supplies.
E)   The payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.

Question 6

The left side of a T-account is always the credit side,while the right side is always the debit side.

Accepted Answer

A) True 
 B)False

Question 7

A compound journal entry is:

Accepted Answer

A)   A journal entry that has three or more debits and three or more credits.
B)   A journal entry that affects at least three accounts.
C)   A journal entry that affects at least four accounts.
D)   A journal entry involving at least two accounting periods.
E)   A journal entry involving only two ledger accounts.

Question 8

A journal in which transactions are first recorded is:

Accepted Answer

A)   A book of original entry.
B)   A ledger.
C)   A book of final entry.
D)   A revenue account.
E)   The cash ledger.

Question 9

A place or location within an accounting system in which the increases and decreases in a specific asset,liability,or equity item is recorded and stored is called a(n) :

Accepted Answer

A)   Journal.
B)   Ledger.
C)   Trial balance.
D)   Account.
E)   Chart of accounts.

Question 10

The chart of accounts is a list of all the accounts used by a company.

Accepted Answer

A) True 
 B)False

Question 11

After preparing an unadjusted trial balance at year-end,the accountant for Chu Design Company discovered the following errors:
(1)The payment of the $225 telephone bill for December was recorded twice.
(2)The payment of a $1,000 note payable was recorded as a debit to Cash and a debit to Notes Payable.
(3)A $900 withdrawal by the owner was recorded to the correct accounts as $90.
(4)An additional investment of $5,000 by the owner was recorded as a debit to
G.Chu,Capital and a credit to Cash.
(5)A credit purchase of office equipment for $1,800 was recorded as a debit to the Office Equipment account with no offsetting credit entry.
Using the form below,indicate if each error would cause the trial balance to be out of balance.
Would the error cause the trial balance to be out of balance?

Accepted Answer

Would the error caus...

Question 12

While in the process of posting from the journal to the ledger,the accountant for X Company failed to post a $50 debit to the Office Supplies account.The effect of this error will be as follows:

Accepted Answer

A)   The Office Supplies account balance will be overstated.
B)   The trial balance will not balance.
C)   The error will overstate the debits listed in the journal.
D)   The total debits in the trial balance will be larger than the total credits.
E)   This error will not make any difference.

Question 13

The balances for the accounts of Mike's Maintenance Co.for the year ended December 31,2015 are shown below.Each account shown has a normal balance.  *The ending balance of the capital account is $20,000; the only addition to the account for the year was net income.
Calculate the correct balances for Cash and Mike,Withdrawals and prepare a trial balance.

Accepted Answer

The answer of The balances for the accounts of Mike's...

Question 14

Double-entry accounting means that every transaction affects and is recorded in at least two accounts.

Accepted Answer

A) True 
 B)False

Question 15

The accounting equation can be expressed as liabilities = assets - equity.

Accepted Answer

A) True 
 B)False

Question 16

If the Debit and Credit column totals of a trial balance are equal,then:

Accepted Answer

A)   All transactions have been recorded correctly.
B)   All entries from the journal have been posted to the ledger correctly.
C)   All ledger account balances are correct.
D)   The total debit entries and total credit entries in the ledger are equal.
E)   No sliding or transposition errors have been made.

Question 17

A ledger is a type of account.

Accepted Answer

A) True 
 B)False

Question 18

A T-Account is a formal account frequently used in business.

Accepted Answer

A) True 
 B)False

Question 19

Of the following errors,which one by itself will cause the trial balance to be out of balance?

Accepted Answer

A)   A $200 salary payment posted as a $200 debit to Cash and a $200 credit to Salaries Expense.
B)   A $100 receipt from a customer in payment of his account posted as a $100 debit to Cash and a $10 credit to Accounts Receivable.
C)   A $75 receipt from a customer in payment of his account posted as a $75 debit to Cash and a $75 credit to Cash.
D)   A $50 cash purchase of office supplies posted as a $50 debit to Office Equipment and a $50 credit to Cash.
E)   All of these errors will cause the trial balance to be out of balance.

Question 20

If Girard Don,the owner of Girard's Software proprietorship,uses cash of the business to purchase a personal computer,the business should record this use of cash with an entry to:

Accepted Answer

A)   Debit Salary Expense and credit Cash.
B)   Debit Girard Don,Salary and credit Cash.
C)   Debit Cash and credit Girard Don,Withdrawals.
D)   Debit Girard Don,Capital and credit Cash.
E)   Debit Girard Don,Withdrawals and credit Cash.

Exam 2: Analyzing and Reporting Transactions

A place or location within an accounting system in which the increases and decreases in a specific asset,liability,or equity item is recorded and stored is called a(n) :

Correct Answer
verified

While in the process of posting from the journal to the ledger,the accountant for X Company failed to post a $50 debit to the Office Supplies account.The effect of this error will be as follows:

Correct Answer
verified

In which of the following situations would the trial balance not balance?

Correct Answer
verified

A compound journal entry is:

Correct Answer
verified

The left side of a T-account is always the credit side,while the right side is always the debit side.

Correct Answer
verified

Of the following errors,which one by itself will cause the trial balance to be out of balance?

Correct Answer
verified

If the Debit and Credit column totals of a trial balance are equal,then:

Correct Answer
verified

Welder Company purchases supplies from Plumber Company on account.The entry for this transaction will include a:

Correct Answer
verified

A T-Account is a formal account frequently used in business.

Correct Answer
verified

If Girard Don,the owner of Girard's Software proprietorship,uses cash of the business to purchase a personal computer,the business should record this use of cash with an entry to:

Correct Answer
verified

A ledger is a type of account.

Correct Answer
verified

The chart of accounts is a list of all the accounts used by a company.

Correct Answer
verified

A journal in which transactions are first recorded is:

Correct Answer
verified

Correct Answer
verified
Would the error caus...
View Answer

Posting is the process of copying the debit and credit amounts from a journal to the ledger accounts.

Correct Answer
verified

Correct Answer
verified

The accounting equation can be expressed as liabilities = assets - equity.

Correct Answer
verified

A $130 credit to Office Equipment was credited to Sales by mistake.By what amounts are the accounts under- or overstated as a result of this error?

Correct Answer
verified

Double-entry accounting means that every transaction affects and is recorded in at least two accounts.

Correct Answer
verified

A business paid $100 to Karen Smith (the owner of the business)for her personal use.Set up two or more T-accounts below and show how this transaction would be recorded directly in those accounts.

Correct Answer
verified

Exam 2: Analyzing and Reporting Transactions

A place or location within an accounting system in which the increases and decreases in a specific asset,liability,or equity item is recorded and stored is called a(n) :

Correct AnswerverifiedShow Answer

While in the process of posting from the journal to the ledger,the accountant for X Company failed to post a $50 debit to the Office Supplies account.The effect of this error will be as follows:

Correct AnswerverifiedShow Answer

In which of the following situations would the trial balance not balance?

Correct AnswerverifiedShow Answer

A compound journal entry is:

Correct AnswerverifiedShow Answer

The left side of a T-account is always the credit side,while the right side is always the debit side.

Correct AnswerverifiedShow Answer

Of the following errors,which one by itself will cause the trial balance to be out of balance?

Correct AnswerverifiedShow Answer

If the Debit and Credit column totals of a trial balance are equal,then:

Correct AnswerverifiedShow Answer

Welder Company purchases supplies from Plumber Company on account.The entry for this transaction will include a:

Correct AnswerverifiedShow Answer

A T-Account is a formal account frequently used in business.

Correct AnswerverifiedShow Answer

If Girard Don,the owner of Girard's Software proprietorship,uses cash of the business to purchase a personal computer,the business should record this use of cash with an entry to:

Correct AnswerverifiedShow Answer

A ledger is a type of account.

Correct AnswerverifiedShow Answer

The chart of accounts is a list of all the accounts used by a company.

Correct AnswerverifiedShow Answer

A journal in which transactions are first recorded is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedWould the error caus...View AnswerShow Answer

Posting is the process of copying the debit and credit amounts from a journal to the ledger accounts.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The accounting equation can be expressed as liabilities = assets - equity.

Correct AnswerverifiedShow Answer

A $130 credit to Office Equipment was credited to Sales by mistake.By what amounts are the accounts under- or overstated as a result of this error?

Correct AnswerverifiedShow Answer

Double-entry accounting means that every transaction affects and is recorded in at least two accounts.

Correct AnswerverifiedShow Answer

A business paid $100 to Karen Smith (the owner of the business)for her personal use.Set up two or more T-accounts below and show how this transaction would be recorded directly in those accounts.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Would the error caus...
View Answer

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Correct Answer
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