Question 1

A column in journals and ledger accounts that is used to cross reference journal and ledger entries is the:

Accepted Answer

A)  Account balance column.
B)  Debit column.
C)  Posting reference column.
D)  Credit column.
E)  Description column.F) A) and C)
G) A) and B)

Question 2

Identify the account used by businesses to record the transfer of assets from a business to its owner for personal use:

Accepted Answer

A)  A revenue account.
B)  The owner's withdrawals account.
C)  The owner's capital account.
D)  An expense account.
E)  A liability account.F) D) and E)
G) A) and D)

Question 3

At the beginning of the current year,Trenton Company's total assets were $248,000 and its total liabilities were $175,000.During the year,the company reported total revenues of $93,000,total expenses of $76,000 and owner withdrawals of $5,000.There were no other changes in owner's capital during the year and total assets at the end of the year were $260,000.Trenton Company's debt ratio at the end of the current year is:

Accepted Answer

A)  70.6%.
B)  67.3%.
C)  32.7%.
D)  48.6%.
E)  1.42%.F) A) and B)
G) B) and E)

Question 4

If insurance coverage for the next two years is paid for in advance,the amount of the payment is debited to an asset account called Prepaid Insurance.

Accepted Answer

A) True 
 B)False

Question 5

Identify the accounts that would normally have balances in the debit column of a business's trial balance.

Accepted Answer

A)  Assets and expenses.
B)  Assets and revenues.
C)  Revenues and expenses.
D)  Liabilities and expenses.
E)  Liabilities and withdrawals.F) A) and C)
G) B) and D)

Question 6

A more structured format that is similar to a T-account in that it has columns for debits and credits,but that is different in that it has columns for transaction date,explanation,and the account balance is the _____________________.

Accepted Answer

balance co...

Question 7

A business paid $100 cash to Charles Nice (the owner of the business)for his personal use.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Accepted Answer

The answer of A business paid $100 cash to Charles...

Question 8

The right side of an account is called the debit side.

Accepted Answer

A) True 
 B)False

Question 9

Items such as sales tickets,bank statements,checks,and purchase orders are examples of a business's source documents.

Accepted Answer

A) True 
 B)False

Question 10

_____________ and ______________ are the starting points for the analyzing and recording process.
Answers can appear in either order.

Accepted Answer

Business t...

Question 11

To increase an asset account we would _______________ it and to increase a liability account,we would ______________ it.
Answers need to appear in the order shown above.

Accepted Answer

The answer of To increase an asset account we would...

Question 12

An asset created by prepayment of an insurance expense is:

Accepted Answer

A)  Recorded as a debit to Unearned Revenue.
B)  Recorded as a debit to Prepaid Insurance.
C)  Recorded as a credit to Unearned Revenue.
D)  Recorded as a credit to Prepaid Insurance.
E)  Not recorded in the accounting records until the insurance period expires.F) A) and E)
G) A) and C)

Question 13

The record of all accounts and their balances used by a business is called a:

Accepted Answer

A)  Journal.
B)  Book of original entry.
C)  General Journal.
D)  Balance column journal.
E)  Ledger.F) A) and B)
G) B) and E)

Question 14

The higher a company's debt ratio,the lower the risk of a company not being able to meet its obligations.

Accepted Answer

A) True 
 B)False

Question 15

In a double-entry accounting system,the total dollar amount debited must always equal the total dollar amount credited.

Accepted Answer

A) True 
 B)False

Question 16

Joe Jackson opened Jackson's Repairs on March 1 of the current year.During March,the following transactions occurred and were recorded in the company's books: 1.Jackson invested $25,000 cash in the business.
2) Jackson contributed $100,000 of equipment to the business.
3) The company paid $2,000 cash to rent office space for the month.
4) The company received $16,000 cash for repair services provided during March.
5) The company paid $6,200 for salaries for the month.
6) The company provided $3,000 of services to customers on account.
7) The company paid cash of $500 for monthly utilities.
8) The company received $3,100 cash in advance of providing repair services to a customer.
9) Jackson withdrew $5,000 for his personal use from the company.
Based on this information,net income for March would be:

Accepted Answer

A)  $10,300.
B)  $13,400.
C)  $5,300.
D)  $8,400.
E)  $13,500.F) B) and D)
G) B) and C)

Question 17

Identify the accounts that would normally have balances in the credit column of a business's trial balance

Accepted Answer

A)  Liabilities and expenses.
B)  Assets and revenues.
C)  Revenues and expenses.
D)  Revenues and liabilities.
E)  Withdrawals and liabilities.F) A) and C)
G) A) and B)

Question 18

The _____________________ is found by determining the difference between total debits and total credits for an account,including any beginning balance.

Accepted Answer

The answer of The _____________________ is found by determining the...

Question 19

Wiley Consulting purchased $7,000 worth of supplies and paid cash immediately.Which of the following general journal entries will Wiley Consulting make to record this transaction?

Accepted Answer

A)   
B)   
C)   
D)   E) B) and D)
F) All of the above

Question 20

The purchase of land and buildings will generally be recorded in the same ledger account.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing and Recording Transactions

_ and __ are the starting points for the analyzing and recording process. Answers can appear in either order.

Correct Answer
verified
Business t...
View Answer

The record of all accounts and their balances used by a business is called a:

Correct Answer
verified

Correct Answer
verified

A business paid $100 cash to Charles Nice (the owner of the business)for his personal use.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Correct Answer
verified

Identify the account used by businesses to record the transfer of assets from a business to its owner for personal use:

Correct Answer
verified

The _____________________ is found by determining the difference between total debits and total credits for an account,including any beginning balance.

Correct Answer
verified

Identify the accounts that would normally have balances in the debit column of a business's trial balance.

Correct Answer
verified

If insurance coverage for the next two years is paid for in advance,the amount of the payment is debited to an asset account called Prepaid Insurance.

Correct Answer
verified

Correct Answer
verified

The purchase of land and buildings will generally be recorded in the same ledger account.

Correct Answer
verified

To increase an asset account we would _ it and to increase a liability account,we would it. Answers need to appear in the order shown above.

Correct Answer
verified

A more structured format that is similar to a T-account in that it has columns for debits and credits,but that is different in that it has columns for transaction date,explanation,and the account balance is the _____________________.

Correct Answer
verified
balance co...
View Answer

The right side of an account is called the debit side.

Correct Answer
verified

A column in journals and ledger accounts that is used to cross reference journal and ledger entries is the:

Correct Answer
verified

Wiley Consulting purchased $7,000 worth of supplies and paid cash immediately.Which of the following general journal entries will Wiley Consulting make to record this transaction?

Correct Answer
verified

In a double-entry accounting system,the total dollar amount debited must always equal the total dollar amount credited.

Correct Answer
verified

Identify the accounts that would normally have balances in the credit column of a business's trial balance

Correct Answer
verified

Items such as sales tickets,bank statements,checks,and purchase orders are examples of a business's source documents.

Correct Answer
verified

An asset created by prepayment of an insurance expense is:

Correct Answer
verified

The higher a company's debt ratio,the lower the risk of a company not being able to meet its obligations.

Correct Answer
verified

Exam 2: Analyzing and Recording Transactions

_____________ and ______________ are the starting points for the analyzing and recording process. Answers can appear in either order.

Correct AnswerverifiedBusiness t...View AnswerShow Answer

The record of all accounts and their balances used by a business is called a:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A business paid $100 cash to Charles Nice (the owner of the business)for his personal use.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Correct AnswerverifiedShow Answer

Identify the account used by businesses to record the transfer of assets from a business to its owner for personal use:

Correct AnswerverifiedShow Answer

The _____________________ is found by determining the difference between total debits and total credits for an account,including any beginning balance.

Correct AnswerverifiedShow Answer

Identify the accounts that would normally have balances in the debit column of a business's trial balance.

Correct AnswerverifiedShow Answer

If insurance coverage for the next two years is paid for in advance,the amount of the payment is debited to an asset account called Prepaid Insurance.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The purchase of land and buildings will generally be recorded in the same ledger account.

Correct AnswerverifiedShow Answer

To increase an asset account we would _______________ it and to increase a liability account,we would ______________ it. Answers need to appear in the order shown above.

Correct AnswerverifiedShow Answer

A more structured format that is similar to a T-account in that it has columns for debits and credits,but that is different in that it has columns for transaction date,explanation,and the account balance is the _____________________.

Correct Answerverifiedbalance co...View AnswerShow Answer

The right side of an account is called the debit side.

Correct AnswerverifiedShow Answer

A column in journals and ledger accounts that is used to cross reference journal and ledger entries is the:

Correct AnswerverifiedShow Answer

Wiley Consulting purchased $7,000 worth of supplies and paid cash immediately.Which of the following general journal entries will Wiley Consulting make to record this transaction?

Correct AnswerverifiedShow Answer

In a double-entry accounting system,the total dollar amount debited must always equal the total dollar amount credited.

Correct AnswerverifiedShow Answer

Identify the accounts that would normally have balances in the credit column of a business's trial balance

Correct AnswerverifiedShow Answer

Items such as sales tickets,bank statements,checks,and purchase orders are examples of a business's source documents.

Correct AnswerverifiedShow Answer

An asset created by prepayment of an insurance expense is:

Correct AnswerverifiedShow Answer

The higher a company's debt ratio,the lower the risk of a company not being able to meet its obligations.

Correct AnswerverifiedShow Answer

_ and __ are the starting points for the analyzing and recording process. Answers can appear in either order.

Correct Answer
verified
Business t...
View 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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Correct Answer
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Correct Answer
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To increase an asset account we would _ it and to increase a liability account,we would it. Answers need to appear in the order shown above.

Correct Answer
verified

Correct Answer
verified
balance co...
View Answer

Correct Answer
verified

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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Correct Answer
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Correct Answer
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