Question 1

A transaction that is recorded in the journal is called a journal entry.

Accepted Answer

A) True 
 B)False

Question 2

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 cashE) B) and C)
F) None of the above

Question 3

Depending on the account title, the right side of the account is referred to as the debit side.

Accepted Answer

A) True 
 B)False

Question 4

Liabilities are increased with debits and decreased with credits.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The chart of accounts for Miguel Corporation includes the following:  On journal page 5, the following transaction was found:
 What is the posting reference that will be found in the Salaries Expense account?

Accepted Answer

A)   5
B)   11
C)   54
D)   none of theseE) B) and C)
F) A) and D)

Question 7

The process of initially recording a business transaction is called

Accepted Answer

A)   closing
B)   posting
C)   journalizing
D)   balancingE) B) and D)
F) All of the above

Question 8

On December 1st, JumpStart Company provides $2,800 in services to clients.
(a) Journalize this event as if the clients had paid cash at the time the services were rendered.
(b) (1) Journalize this event as if the clients had placed this on account.
(b) (2) Assume that the clients paid $1,200 of the amount on account on December 30th. Journalize this transaction.

Accepted Answer

(a) Journal Entry:
Accounts Receivable ...

Question 9

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

Accepted Answer

A) True 
 B)False

Question 10

Match between columns
                        Premises: The company collected $730 of cash from its customers on account.
The company paid $315 in salaries to its employees.
The company paid $725 to a vendor for supplies purchased previously on account.
The company received a utility bill for $395 and will pay it next month.
The stockholder of the company received a cash dividend of $1,000.
The company performed $850 of services and billed the customer.

Accepted Answer

The Answer of Expense, dr.; Assets, cr. and Expense, dr.; is...

Question 11

The chart of accounts should be the same for each business.

Accepted Answer

A) True 
 B)False

Question 12

A credit to the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following abbreviations are correct?

Accepted Answer

A)   Debit "Dr", Credit "Cd"
B)   Debit "Db", Credit "Cr"
C)   Debit "Db", Credit "Cd"
D)   Debit "Dr", Credit "Cr"E) B) and D)
F) All of the above

Question 14

Which is the best explanation for this journal entry?

Accepted Answer

A)   Purchased equipment, paid cash of $5,000, with the remainder to be paid in the future.
B)   Purchased equipment, paid cash of $10,000, with the remainder to be received in the future.
C)   Purchased equipment, paid cash for the entire amount.
D)   Purchased equipment on credit.E) A) and D)
F) B) and C)

Question 15

When an account receivable is collected in cash, the total assets of the business increase.

Accepted Answer

A) True 
 B)False

Question 16

The process of recording a transaction in the journal is called

Accepted Answer

A)   recording
B)   journalizing
C)   posting
D)   summarizingE) All of the above
F) A) and D)

Question 17

The balance of the account is determined by

Accepted Answer

A)   adding all of the debits to all of the credits.
B)   always subtracting the debits from the credits.
C)   always subtracting the credits from the debits.
D)   adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum.E) B) and D)
F) All of the above

Question 18

Which of the following entries records the payment of rent for the current month?

Accepted Answer

A)   Cash, debit; Rent Expense, credit
B)   Rent Expense, debit; Cash, credit
C)   Rent Expense, debit; Accounts Receivable, credit
D)   Accounts Payable, debit; Rent Expense, creditE) None of the above
F) B) and C)

Question 19

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

Accepted Answer

The trend in sales revenue is unfavora...

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

A transaction that is recorded in the journal is called a journal entry.

Correct Answer
verified

The process of recording a transaction in the journal is called

Correct Answer
verified

The chart of accounts for Miguel Corporation includes the following: On journal page 5, the following transaction was found: What is the posting reference that will be found in the Salaries Expense account?

Correct Answer
verified

What effect does this journal entry have on the accounts?

Correct Answer
verified

The chart of accounts should be the same for each business.

Correct Answer
verified

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

Correct Answer
verified

Depending on the account title, the right side of the account is referred to as the debit side.

Correct Answer
verified

When an account receivable is collected in cash, the total assets of the business increase.

Correct Answer
verified

Which of the following entries records the payment of rent for the current month?

Correct Answer
verified

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

Correct Answer
verified

Which is the best explanation for this journal entry?

Correct Answer
verified

The balance of the account is determined by

Correct Answer
verified

A credit to the cash account will increase the account.

Correct Answer
verified

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

Correct Answer
verified

The trend in sales revenue is unfavora...
View Answer

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

Correct Answer
verified

Which of the following abbreviations are correct?

Correct Answer
verified

Liabilities are increased with debits and decreased with credits.

Correct Answer
verified

The process of initially recording a business transaction is called

Correct Answer
verified

Analyze the following transactions as to their effect on the accounting equation.

Correct Answer
Answered by ExamLex AI
(a) Journal Entry:
Accounts Receivable ...
View Answer

Exam 2: Analyzing Transactions

A transaction that is recorded in the journal is called a journal entry.

Correct AnswerverifiedShow Answer

The process of recording a transaction in the journal is called

Correct AnswerverifiedShow Answer

The chart of accounts for Miguel Corporation includes the following: On journal page 5, the following transaction was found: What is the posting reference that will be found in the Salaries Expense account?

Correct AnswerverifiedShow Answer

What effect does this journal entry have on the accounts?

Correct AnswerverifiedShow Answer

The chart of accounts should be the same for each business.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Depending on the account title, the right side of the account is referred to as the debit side.

Correct AnswerverifiedShow Answer

When an account receivable is collected in cash, the total assets of the business increase.

Correct AnswerverifiedShow Answer

Which of the following entries records the payment of rent for the current month?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which is the best explanation for this journal entry?

Correct AnswerverifiedShow Answer

The balance of the account is determined by

Correct AnswerverifiedShow Answer

A credit to the cash account will increase the account.

Correct AnswerverifiedShow Answer

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

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

The erroneous moving of an entire number one or more spaces to the right or left, such as writing $85 as $850, is called a transposition.

Correct AnswerverifiedShow Answer

Which of the following abbreviations are correct?

Correct AnswerverifiedShow Answer

Liabilities are increased with debits and decreased with credits.

Correct AnswerverifiedShow Answer

The process of initially recording a business transaction is called

Correct AnswerverifiedShow Answer

Analyze the following transactions as to their effect on the accounting equation.

Correct AnswerAnswered by ExamLex AI(a) Journal Entry:Accounts Receivable ...View AnswerShow 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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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The trend in sales revenue is unfavora...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
(a) Journal Entry:
Accounts Receivable ...
View Answer