Saturday, June 11, 2011

Chapter 2

1.

Assets are increased with debits and decrease with credits.
Student ResponseValueCorrect AnswerFeedback
False
Student Response True100%Student Response
Score:1/1

2.

Of the following, which statement is true about assets?
Student ResponseValueCorrect AnswerFeedback
Assets include only physical assets.
Assets are owned solely by stockholders of the company
Student Response Assets include physical and intangible assets.100%Student Response
Assets are the result of selling products or services to customers.
Score:1/1

3.

Which of the following abbreviations are correct?
Student ResponseValueCorrect AnswerFeedback
Debit “Dr”, Credit “Cd”
Debit “Db”, Credit “Cr”
Student Response Debit “Dr”, Credit “Cr”100%Student Response
Debit “Db”, Credit “Cd”
Score:1/1

4.

The double-entry accounting system records each transaction twice.
Student ResponseValueCorrect AnswerFeedback
Student Response True0%
FalseStudent Response
Score:0/1

5.

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.
Student ResponseValueCorrect AnswerFeedback
FalseStudent Response
Student Response True0%
Score:0/1

6.

The balance of the account is determined by
Student ResponseValueCorrect AnswerFeedback
adding all of the debits to all of the credits.
always subtracting all of the credits from the debit.
always subtracting the debits from the credits.
Student Response adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum.100%Student Response
Score:1/1

7.

Unless the transaction is compound, the dollar amount of the debits for each transaction is equal to the dollar amount of the credits for that transaction, and thus the term double-entry bookkeeping.
Student ResponseValueCorrect AnswerFeedback
FalseStudent Response
Student Response True0%
Score:0/1

8.

Which of the following errors, each considered individually, would cause the trial balance totals to be unequal?
Student ResponseValueCorrect AnswerFeedback
cash received from customers on account was posted as a debit of $680 to Cash and a credit of $680 to Accounts Payable
a payment of $67 for insurance was posted as a debit of $42 to Prepaid Insurance and a credit of $42 to Cash
a transaction was not posted
Student Response a payment of $1,311 to a creditor was posted as a debit of $3,111 to Accounts Payable and a debit of $311 to Accounts Receivable100%Student Response
Score:1/1

9.

The classification and normal balance of the supplies expense account is a(n)
Student ResponseValueCorrect AnswerFeedback
asset with a debit balance
liability with a credit balance
Student Response expense with a debit balance100%Student Response
asset with a credit balance
Score:1/1

10.

Which of the following groups of accounts have a normal debit balance?
Student ResponseValueCorrect AnswerFeedback
liabilities, expenses
revenues, liabilities, capital stock
Student Response assets, expenses100%Student Response
capital stock, assets
Score:1/1

11.

Prepaid expenses are an example of an expense.
Student ResponseValueCorrect AnswerFeedback
FalseStudent Response
Student Response True0%
Score:0/1

12.

In which of the following types of accounts are increases recorded by debits?
Student ResponseValueCorrect AnswerFeedback
assets, liabilities
dividends, liabilities
expenses, liabilities
Student Response assets, expenses100%Student Response
Score:1/1

13.

Stockholders’ equity is the stockholders’ right to the assets of the business.
Student ResponseValueCorrect AnswerFeedback
False
Student Response True100%Student Response
Score:1/1

14.

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance.
Student ResponseValueCorrect AnswerFeedback
Student Response False100%Student Response
True
Score:1/1

15.

Which of the following entries records the acquisition of office supplies on account?
Student ResponseValueCorrect AnswerFeedback
Accounts Receivable, debit; Office Supplies, credit
Office Supplies, debit; Cash, credit
Cash, debit; Office Supplies, credit
Student Response Office Supplies, debit; Accounts Payable, credit100%Student Response
Score:1/1

16.

An account is said to have a debit balance if
Student ResponseValueCorrect AnswerFeedback
the first entry of the accounting period was posted on the debit side
Student Response the amount of the debits exceeds the amount of the credits100%Student Response
there are more entries on the debit side than on the credit side
its normal balance is debit without regard to the amounts or number of entries on the debit side
Score:1/1

17.

A credit signifies a decrease in
Student ResponseValueCorrect AnswerFeedback
Student Response expense100%Student Response
liabilities
capital stock
revenue
Score:1/1

18.

Which statement(s) concerning cash is (are) true?
Student ResponseValueCorrect AnswerFeedback
all of the above
cash will always have more debits than credits
Student Response cash is increased by debiting100%Student Response
cash will never have a credit balance
Score:1/1

19.

A list of the accounts is called
Student ResponseValueCorrect AnswerFeedback
Debit
T-Account
Student Response ledger0%
chart of accountsStudent Response
Score:0/1

20.

Stockholders’ equity will be reduced by all of the following accounts except:
Student ResponseValueCorrect AnswerFeedback
Dividends
Expenses
Student Response Revenues100%Student Response
All are true.
Score:1/1

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