FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Analyzing Transactions

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

True/False

Review LaterAdd Note

Review Later

All owner's equity accounts record increases to the accounts with credits.

A) True
B) False

Correct Answer

verified

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

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

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) None of the above
F) A) and D)

Correct Answer

verified

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

Accounts

Net income will result when

On January 1, Merry Walker established a catering service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following this list are the transactions that occurred in Walker's first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number (s) in the appropriate box.​ $\begin{array} { | l | l | l | } \hline \text { Transactions } & \text { Account(s) Debited } & \text { Account(s) Credited } \\\hline \text { a. Recorded jobs completed on } & & \\\text { account and sent invoices to } & & \\\text { customers. } & & \\\hline \text { b. Received an invoice for truck } & & \\\text { expenses to be paid in February. } & & \\\hline \text { c. Paid utilities expense } & & \\\hline \begin{array} { l } \text { ac Received cash from customers on } \\\text { account. }\end{array} & & \\\hline \text { e. Paid employee wages. } & & \\\hline \text { f. Withdrew cash for personal use. } & & \\\hline\end{array}$

Which of the following statements regarding a horizontal analysis is false?

In which of the following types of accounts are decreases recorded by debits?

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account. -Copyrights

Debits will increase unearned revenues and revenues.

Expenses follow the same debit and credit rules as

The Posting Reference columns are used to trace transactions from the ledger to the journal. What will be entered in the Posting Reference column of (1) the journal and (2) the ledger?

Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following: (a) In the first column at the right, indicate the nature of each account, using thefollowing abbreviations: (b) In the second column, indicate the increase side of each account by insertingDr. or Cr.

Which of the following groups of accounts have a normal debit balance?

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Balance incorrectly computed

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account. -Accounts Payable

Which of the following statements is not true about liabilities?

Journalizing always eliminates fraudulent activity.

The bookkeeper for Brockton Industries prepared the following journal entries and posted the entries to the general ledger as indicated in the T accounts presented. Assume that the dollar amounts and the descriptions of the entries are correct.​​ ​ ​ ​ RequiredIf you assume that all journal entries have been recorded correctly, use the above information to: (1) Identify the postings to the general ledger that were made incorrectly. (2) Describe how the each incorrect posting should have been made.

The purchase of supplies on account was recorded and posted as a debit to Supplies for $500 and a credit to Accounts Receivable for $500. The correcting entry would include a

Organize the following accounts into the usual sequence of a chart of accounts.Miscellaneous ExpenseAccounts PayableAccounts ReceivableCashAlecia Morris, CapitalFees EarnedPrepaid RentSalaries ExpenseUnearned RevenueAlecia Morris, Drawing