False ANSWER: True DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.04 - Cash vs. AccrualACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic The Dividends account is an expense. True False ANSWER: False DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Accounts in the ledger are usually maintained in alphabetical order. True False ANSWER: False DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Depending on the account title, the right side of the account is referred to as the credit side. True False ANSWER: False DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ANSWER: False DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Debiting the cash account will increase the account. True False ANSWER: True DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic A credit to the cash account will increase the account. True False ANSWER: False DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The cash account will always be debited. True False ANSWER: False DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement
DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.15 - Current Assets ReportingACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic When an account payable is paid with cash, the stockholders' equity in the business decreases. True False ANSWER: False DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.16 - Current Liabilities ReportingACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The normal balance of a stockholders' equity account is a debit. True False ANSWER: False DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic For a month's transactions for a typical medium-sized business, the salary expense account is likely to have onlycredit entries. True False ANSWER: False DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions
ACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic When a business receives a bill from the utility company, no entry should be made until the invoice is paid. True False ANSWER: False DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.ACBSP.APC.16 - Current Liabilities ReportingACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic A debit is abbreviated as Db. and a credit is abbreviated as Cr. True False ANSWER: False DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.05 - Accounting CycleACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic For a month's transactions for a typical medium-sized business, the accounts payable account is likely to have onlycredit entries. True False ANSWER: False DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic Dividends decrease stockholders' equity and are listed on the income statement as a deduction from revenue. True False ANSWER: False
DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.09 - Financial StatementsACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic The normal balance of revenue accounts is a credit. True False ANSWER: True DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The normal balance of the dividends account is a debit. True False ANSWER: True DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The normal balance of an expense account is a credit. True False ANSWER: False DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic
Expense accounts are increased by credits. True False ANSWER: False DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Revenue accounts are increased by credits. True False ANSWER: True DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Liability accounts are increased by debits. True False ANSWER: False DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Journalizing transactions using the double-entry bookkeeping system will eliminate fraud. True False ANSWER: False DIFFICULTY: Moderate Bloom's: Remembering
DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic The double-entry accounting system records each transaction twice. True False ANSWER: False DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic The increase side of an account is also the side of the normal balance. True False ANSWER: True DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Journal entries include both debit and credit accounts for each transaction. True False ANSWER: True DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic A transaction that is recorded in the journal is called a journal entry. True False
ANSWER: True DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic Assets are increased with debits and decreased with credits. True False ANSWER: True DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Liabilities are increased with debits and decreased with credits. True False ANSWER: False DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Debits will increase unearned revenues and revenues. True False ANSWER: False DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.04 - Cash vs. AccrualACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic
All stockholders' equity accounts record increases to the accounts with credits. True False ANSWER: False DIFFICULTY: Challenging Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Journalizing always eliminates fraudulent activity. True False ANSWER: False DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Journal entries can have more than two accounts as long as the debits equal the credits. True False ANSWER: True DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic Normal account balances are on the increase side of the accounts. True False ANSWER: True DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02
False ANSWER: True DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-03 - LO: 02-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare thefinancial statements. True False ANSWER: False DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-03 - LO: 02-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.05 - Accounting Cycle ACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic The process of transferring the debits and credits from the journal entries to the accounts is known as posting. True False ANSWER: True DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-03 - LO: 02-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Postings made to standard account forms show a new balance after each entry. True False ANSWER: True DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-03 - LO: 02-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.05 - Accounting Cycle
ANSWER: False DIFFICULTY: Challenging Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-04 - LO: 02-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.09 - Financial StatementsACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balancesheet. True False ANSWER: False DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-04 - LO: 02-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.09 - Financial StatementsACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic If the trial balance is in balance, it can be assumed that all journal entries were posted correctly and no errors weremade. True False ANSWER: False DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-04 - LO: 02-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.09 - Financial StatementsACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal. True False ANSWER: False DIFFICULTY: Challenging Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-04 - LO: 02-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
chart of accounts T chart debit listing ANSWER: b DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic In the chart of accounts, the balance sheet accounts are normally listed in which order? liabilities, assets, stockholders' equity assets, liabilities, stockholders' equity stockholders' equity, assets, liabilities assets, stockholders' equity, liabilities ANSWER: b DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic In which order are the accounts listed in the chart of accounts? assets, expenses, liabilities, stockholders' equity, revenues stockholders' equity, assets, liabilities, revenues, expenses assets, liabilities, stockholders' equity, revenues, expenses assets, liabilities, revenues, expenses, stockholders' equity ANSWER: c DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.09 - Financial StatementsACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic Which are the parts of the T account? title, date, total
expenses dividends all of these ANSWER: a DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.09 - Financial StatementsACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances. Accounts payable $1,500 Fees earned $3,600 Accounts receivable 1,800 Insurance expense 1,300 Prepaid insurance 2,000 Land 3,000 Cash 3,200 Wages expense 1,400 Dividends 1,200 Common stock 8,800 Total assets are a. $10,000 b. $8,000 c. $9,700 d. $9,800 ANSWER: a DIFFICULTY: Challenging Bloom's: Applying LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.09 - Financial Statements ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic 98. Expenses can result from a. increasing stockholders' equity b. consuming services c. using up liabilities d. purchasing assets ANSWER: b DIFFICULTY: Challenging Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 - Business Forms ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic A debit may signify a(n) decrease in asset accounts decrease in liability accounts increase in the common stock account decrease in the dividends account ANSWER: b DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which of the following types of accounts have a normal credit balance? assets and liabilities liabilities and expenses revenues and common stock common stock and dividends ANSWER: c DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which of the following groups of accounts have a normal debit balance? revenues, liabilities, and stockholders' equity stockholders' equity and assets liabilities and stockholders' equity assets and expenses ANSWER: d DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which one of the statements below is nota purpose for the journal? to show increases and decreases in accounts to show a chronological order by date to show a complete transaction in one place to help locate errors ANSWER: a DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic A credit may signify a decrease in assets decrease in liabilities decrease in common stock decrease in revenue ANSWER: a DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic A debit signifies a decrease in assets expenses dividends revenues ANSWER: d DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02
Land Accounts Receivable Cash ANSWER: a DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which of the following stockholders' equity accounts follows the same debit and credit rules as liabilities? expense accounts only dividends accounts only revenue accounts only expense and dividends accounts ANSWER: c DIFFICULTY: Challenging Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The payment for the monthly rent will require which of the following entries? debit Cash and debit Rent Expense credit Cash and credit Rent Expense debit Rent Expense and credit Cash credit Rent Expense and debit Cash ANSWER: c DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic Expenses follow the same debit and credit rules as revenues the asset account
DIFFICULTY: Moderate Bloom's: Applying LEARNING OBJECTIVES: FNMN.WARD.16.02-03 - LO: 02-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.05 - Accounting Cycle ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic What is the posting reference that will be found in the prepaid insurance account? 11 15 3 13 ANSWER: c DIFFICULTY: Moderate Bloom's: Applying LEARNING OBJECTIVES: FNMN.WARD.16.02-03 - LO: 02-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.05 - Accounting Cycle ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic What posting references will be found in the journal entry? a. 15, 11 b. 15, 3 c. 11, 3 d. 3, 15 ANSWER: a DIFFICULTY: Challenging Bloom's: Applying LEARNING OBJECTIVES: FNMN.WARD.16.02-03 - LO: 02-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.05 - Accounting Cycle ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The chart of accounts for the Miguel Company includes the following: Account Name Account Number Cash 11 Accounts Receivable 13 Prepaid Insurance 15 Accounts Payable 21
StatementsACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic On January 31, the cash account balance was $96,750. During January, cash receipts totaled $305,000 and cashpayments totaled $375,880. Determine the cash balance on January 1. ANSWER: ??? + $305,000 − $375,880 = $96,750 Cash balance at January 1 is $167,630 DIFFICULTY: Moderate Bloom's: Applying LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic Organize the following accounts into the usual sequence of a chart of accounts. Miscellaneous ExpenseAccounts PayableAccounts ReceivableCash Common StockFees EarnedPrepaid RentSalaries ExpenseUnearned RevenueDividends ANSWER: Cash Accounts ReceivablePrepaid RentAccounts PayableUnearned RevenueCommon StockDividends Fees EarnedSalaries Expense Miscellaneous Expense DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Calculate the following: Determine the cash receipts for April based on the following data:
notepayable for the remainder. Paid $2,300 for rent for April. Purchased $1,500 of supplies on account. Recorded $9,800 of fees earned on account. Received $7,500 in cash for fees earned. Paid $1,200 to creditors on account. Paid wages of $3,425. Received $7,900 from customers on account. Recorded dividends of $1,875. ANSWER: (a) Cash 18,000 Common Stock 18,000 Equipment 27,000 Cash 10,000 Notes Payable 17,000 Rent Expense 2,300 Cash 2,300 Supplies 1,500 Accounts Payable 1,500 Accounts Receivable 9,800 Fees Earned 9,800 Cash 7,500 Fees Earned 7,500 Accounts Payable 1,200 Cash 1,200 Wages Expense 3,425 Cash 3,425 Cash 7,900 Accounts Receivable 7,900 (j) Dividends Cash 1,875 1,875 DIFFICULTY: Challenging Bloom's: Applying LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic On January 12, JumpStart Co. purchased $870 in office supplies. Journalize this transaction as if JumpStart paid cash. (1) Journalize this transaction as if JumpStart placed it on account.
Patents ANSWER: a Dividends ANSWER: c For each of the following accounts, indicate whether its normal balance is on the credit side or the debitside of the T account. Credit side Debit side DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-02 - LO: 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic Common Stock ANSWER: a Accounts Receivable ANSWER: b Accounts Payable ANSWER: a Interest Earned ANSWER: a Copyrights ANSWER: b Several types of errors can be made during the journalizing and posting process. Match the following withtheir
best description. Trial balance preparation errors Account balance errors Posting errors DIFFICULTY: Challenging Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-04 - LO: 02-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording TransactionsACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Balance incorrectly computed. ANSWER: b Debit or credit posting omitted. ANSWER: c Wrong amount posted to an account. ANSWER: c Column incorrectly added. ANSWER: a Balance entered on wrong side of account. ANSWER: b Amount incorrectly entered on trial balance. ANSWER: a Balance entered in wrong column or omitted. ANSWER: a Debit posted as credit, or vice versa. ANSWER: c