Question 1

The post reference notation used in the journal is the page number.

Accepted Answer

A) True 
 B)False

Question 2

Even when a trial balance is in balance,there may be errors in the individual accounts.

Accepted Answer

A) True 
 B)False

Question 3

When a business receives a bill from the utility company,no entry should be made until the invoice is paid.

Accepted Answer

A) True 
 B)False

Question 4

Nebraska Technologies has a condensed income statement as shown:
​
  REQUIRED:
Prepare a horizontal analysis of Nebraska Technologies' 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"> The trend in sales revenue is unfavorab...

Question 5

The balance of the account can be determined by adding all of the debits,adding all of the credits,and adding the amounts together.

Accepted Answer

A) True 
 B)False

Question 6

A chart of accounts is a listing of accounts that make up the journal.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)   posting the debit portion of a journal entry incorrectly when the credit portion of the entry is correctly posted
B)   failure to record a transaction or to post a transaction
C)   recording the same transaction more than once
D)   recording the same erroneous amount for both the debit and the credit parts of a transactionE) All of the above
F) A) and B)

Question 8

In the chart of accounts,the balance sheet accounts are normally listed in which order?

Accepted Answer

A)   liabilities,assets,stockholders' equity
B)   assets,liabilities,stockholders' equity
C)   stockholders' equity,assets,liabilities
D)   assets,stockholders' equity,liabilitiesE) None of the above
F) All of the above

Question 9

Journal entries include both debit and credit accounts for each transaction.

Accepted Answer

A) True 
 B)False

Question 10

When an account payable is paid with cash,the stockholders' equity in the business decreases.

Accepted Answer

A) True 
 B)False

Question 11

A credit to the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 12

A cash payment is recorded in the cash account as

Accepted Answer

A)   neither a debit nor a credit
B)   a credit
C)   a debit
D)   either a debit or a creditE) B) and D)
F) B) and C)

Question 13

When a transposition error is made on the trial balance,the difference between the debit and credit totals on the trial balance will be

Accepted Answer

A)   zero
B)   twice the amount of the transposition
C)   one-half the amount of the transposition
D)   divisible by 9E) B) and D)
F) All of the above

Question 14

Below is the unadjusted trial balance for Dawson Designs.
REQUIRED:
(1)Identify the errors in the trial balance.All accounts have normal balances.
(2)Prepare a corrected trial balance.

Accepted Answer

(1) a.The debit column is added incorrec...

Question 15

Which one of the statements below is not a purpose for the journal?

Accepted Answer

A)   to show increases and decreases in accounts
B)   to show chronological order of transactions
C)   to show a complete transaction in one place
D)   to help locate errorsE) A) and C)
F) None of the above

Question 16

Which of the following is not true with a double-entry accounting system?

Accepted Answer

A)   The accounting equation remains in balance.
B)   The sum of all debits is always equal to the sum of all credits in each journal entry.
C)   Each business transaction will have two debits.
D)   Every transaction affects at least two accounts.E) All of the above
F) A) and D)

Question 17

In which of the following types of accounts are increases recorded by credits?

Accepted Answer

A)   revenues and liabilities
B)   dividends and assets
C)   liabilities and dividends
D)   expenses and liabilitiesE) C) and D)
F) A) and B)

Question 18

Debits will increase unearned revenues and revenues.

Accepted Answer

A) True 
 B)False

Question 19

The normal balance of the dividends account is a debit.

Accepted Answer

A) True 
 B)False

Question 20

To determine the balance in an account,always subtract credits from debits.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

Which one of the statements below is not a purpose for the journal?

Correct AnswerverifiedShow Answer

Nebraska Technologies has a condensed income statement as shown: ​ REQUIRED: Prepare a horizontal analysis of Nebraska Technologies' income statements.Comment on the trends,both favorable and unfavorable.

Correct Answerverified The trend in sales revenue is unfavorab...View AnswerShow Answer

Which of the following is not true with a double-entry accounting system?

Correct AnswerverifiedShow Answer

In which of the following types of accounts are increases recorded by credits?

Correct AnswerverifiedShow Answer

Journal entries include both debit and credit accounts for each transaction.

Correct AnswerverifiedShow Answer

In the chart of accounts,the balance sheet accounts are normally listed in which order?

Correct AnswerverifiedShow Answer

Debits will increase unearned revenues and revenues.

Correct AnswerverifiedShow Answer

When a transposition error is made on the trial balance,the difference between the debit and credit totals on the trial balance will be

Correct AnswerverifiedShow Answer

Even when a trial balance is in balance,there may be errors in the individual accounts.

Correct AnswerverifiedShow Answer

The post reference notation used in the journal is the page number.

Correct AnswerverifiedShow Answer

A cash payment is recorded in the cash account as

Correct AnswerverifiedShow Answer

When a business receives a bill from the utility company,no entry should be made until the invoice is paid.

Correct AnswerverifiedShow Answer

When an account payable is paid with cash,the stockholders' equity in the business decreases.

Correct AnswerverifiedShow Answer

To determine the balance in an account,always subtract credits from debits.

Correct AnswerverifiedShow Answer

The normal balance of the dividends account is a debit.

Correct AnswerverifiedShow Answer

The balance of the account can be determined by adding all of the debits,adding all of the credits,and adding the amounts together.

Correct AnswerverifiedShow Answer

A credit to the cash account will increase the account.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A chart of accounts is a listing of accounts that make up the journal.

Correct AnswerverifiedShow Answer

Below is the unadjusted trial balance for Dawson Designs. REQUIRED: (1)Identify the errors in the trial balance.All accounts have normal balances. (2)Prepare a corrected trial balance.

Correct Answerverified(1) a.The debit column is added incorrec...View AnswerShow Answer

Correct Answer
verified

Nebraska Technologies has a condensed income statement as shown: REQUIRED: Prepare a horizontal analysis of Nebraska Technologies' income statements.Comment on the trends,both favorable and unfavorable.

Correct Answer
verified
The trend in sales revenue is unfavorab...
View Answer

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(1) a.The debit column is added incorrec...
View Answer