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Exam 2: Analyzing Transactions

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Question 81

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Which of the following accounts are debited to record increase in balances?

A) assets and liabilities
B) drawing and liabilities
C) expenses and liabilities
D) assets and expenses

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Question 82

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Journalizing is the process of entering amounts in the ledger.

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Question 83

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$\begin{array}{|l|l|l|l|l|l|}\hline \text { April } & 23 & \text { Cash } & &26,000 & \\\hline & & \text { Jim Xu, Capital } & & & 26,000 \\\hline & & \text { Invest cash in XuCo. } & & & \\\hline\\\end{array}$ The journal entry will:

For a month's transactions for a typical medium-sized business, the accounts payable account is likely to have only credit entries.

Which of the following group of accounts increase with a credit?

The chart of accounts is designed to

Journalizing eliminates fraud.

Which one of the statements below is not a purpose for the journal?

The normal balance of a capital account is a debit.

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

McMann Company has a condensed income statement as shown:: $\begin{array} { | l | l | l | } \hline & \mathbf { 2 1 4 } & \mathbf { 2 0 1 3 } \\\hline \text { Sales } & \$ 150,000 & \$ 165,500 \\\hline \text { Total operating expenses } & 133,000 & 147,500 \\\hline \text { Net income } & 17,000 & 18,000 \\\hline & & \\\end{array}$ Using horizontal analysis, calculate the amount and percent change for Sales. Round to one decimal place.

The chart of accounts classify the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?

Total dollar amount of the debits equal the total dollar amount of the credits in the ledger can be verified through:

Which statement(s) concerning cash is (are) true?

Liabilities are debts owed by the business entity.

State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also, indicate the normal balance of each account. $\begin{array}{ll}\text { 1. Fees Earned } \\\text { 2. Utilities Expense } \\\text { 3. Accounts Payable }\end{array}$ $\begin{array}{l}\text { 4. Supples } \\\text { 5. Cash } \\\text { 6. Accounts Receivable }\end{array}$

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

A chart of accounts is a listing of accounts that make up the journal.

Damien Lawson invests $45,000 to initiate the operation of his business, JumpStart, on January 7th. Journalize this transaction.

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to find the error?