Question 1

On November 1st Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land plot. Write the journal entry for this payment in the space below.

Accepted Answer

The answer of On November 1st Nikle Company made a...

Question 2

Which of the following owner's equity accounts follows the same debit and credit rules as liabilities?

Accepted Answer

A)   Expense accounts only
B)   Drawing accounts only
C)   Revenues accounts only
D)   Expenses and drawing accountsE) A) and B)
F) A) and C)

Question 3

A cash payment is recorded on the cash account as a

Accepted Answer

A)   neither a debit or a credit
B)   credit
C)   debit
D)   either a debit or a creditE) B) and C)
F) A) and D)

Question 4

Expense accounts are increased by credits.

Accepted Answer

A) True 
 B)False

Question 5

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) A) and D)
F) All of the above

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Posting a transaction twice will cause the trial balance totals to be equal.

Accepted Answer

A) True 
 B)False

Question 8

Transactions are initially entered into a record called a journal.

Accepted Answer

A) True 
 B)False

Question 9

When an accounts payable account is paid in cash, the owner's equity in the business decreases.

Accepted Answer

A) True 
 B)False

Question 10

Liability accounts are increased by debits.

Accepted Answer

A) True 
 B)False

Question 11

The recording of cash payments from the cash account is done by entering the amount as a credit.

Accepted Answer

A) True 
 B)False

Question 12

The ____ is where a transaction can first be found on the accounting records.

Accepted Answer

A)   chart of accounts
B)   income statement
C)   balance sheet
D)   journalE) A) and D)
F) A) and C)

Question 13

When an owner contributes equipment to the business, he or she retains ownership of the property.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following accounts would be increased with a credit?

Accepted Answer

A)   Land, Accounts Payable, Drawing
B)   Accounts Payable, Unearned revenue, Collins Capital
C)   Collins Capital, Accounts Receivable, Unearned Revenue
D)   Cash, Accounts Receivable, Collins CapitalE) A) and B)
F) A) and C)

Question 15

A chart of accounts is

Accepted Answer

A)   the same as a balance sheet
B)   usually a listing of accounts in alphabetical order
C)   usually a listing of accounts in financial statement order
D)   used in place of a ledgerE) B) and C)
F) B) and D)

Question 16

The process of initially recording a business transaction is called

Accepted Answer

A)   closing
B)   posting
C)   journalizing
D)   balancingE) B) and C)
F) A) and D)

Question 17

Owner's capital will be reduced by the amount in the drawing account.

Accepted Answer

A) True 
 B)False

Question 18

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 payments.
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) All of the above
F) A) and D)

Question 19

The process of transferring the debits and credits from the journal entries to the accounts is known as "updating the accounts".

Accepted Answer

A) True 
 B)False

Question 20

Revenue should be recognized when

Accepted Answer

A)   cash is received
B)   the service is performed
C)   the customer places an order
D)   the supplier charges an orderE) A) and B)
F) A) and C)

Exam 2: Analyzing Transactions

Liability accounts are increased by debits.

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Which of the following accounts would be increased with a credit?

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The recording of cash payments from the cash account is done by entering the amount as a credit.

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Owner's capital will be reduced by the amount in the drawing account.

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The process of transferring the debits and credits from the journal entries to the accounts is known as "updating the accounts".

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The balance of the account is determined by

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The ____ is where a transaction can first be found on the accounting records.

Correct AnswerverifiedShow Answer

Expense accounts are increased by credits.

Correct AnswerverifiedShow Answer

Posting a transaction twice will cause the trial balance totals to be equal.

Correct AnswerverifiedShow Answer

A cash payment is recorded on the cash account as a

Correct AnswerverifiedShow Answer

Transactions are initially entered into a record called a journal.

Correct AnswerverifiedShow Answer

Which is the best explanation for this journal entry?

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Revenue should be recognized when

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When an owner contributes equipment to the business, he or she retains ownership of the property.

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The process of initially recording a business transaction is called

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When an accounts payable account is paid in cash, the owner's equity in the business decreases.

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A chart of accounts is

Correct AnswerverifiedShow Answer

On November 1st Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land plot. Write the journal entry for this payment in the space below.

Correct AnswerverifiedShow Answer

Which of the following owner's equity accounts follows the same debit and credit rules as liabilities?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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