Accounting Chapter 2 Study Guide MC
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An account is an individual accouting record of increases and decreases in specific ____
asets, liability and stocholder's equity items.
A Increase both assets and liabilites
B decrease both assets and liabilities
C increases assets and decrease liabilites
D decrease assets and increase liabilites
D decrease assets and increase liabilites
An account which is increased by a credit is:
A an asset account
B a liability account
C a dividends account
D an expense account
an asset account dividends account and an expense account are all acounds that have normal devit balances thus, they are increased by debits so solution is is B liabilities account
Which of the folowing rules is incorrect?
A Credit decrease the dividends account
B Debits increase the retained earnings account
C Credits increase revenue accounts
D Devits decrease liability accounts
B Debits decrese the retained earnigns account because the retained earnings account has a credit balance as its normal balance. Choices a, c and d are all correct rules concerning increasing or decreasing accounts
An account which is increased by a debit is a:
An account which is increased by a credit is a:
What is the correct sequence of the steps in the recoridng process?
Analyzing, journalizing, posting
The column in the general journal which is not used during journalizing is the:
A Date column
B account title column
C reference column
D debit amount column
reference column, the referecnce column is used later when the jurnal entries are posted to the ledger
Which of the following is a false statement?
A The account Revenue from Fees is increased with a credit
B A compound entry is when two or more accoutns are required in one journal entry.
C Retained Earnings is increased by a credit entry.
D All transactiosn are initially recorded in a jounal.
b, "a compound entry is whentwo or more accounts are required in one journal entry" because a compound entry is when three or more accoutns are required in one journal entry.
What is not considered a significant contribution of the journal to the recording process?
The Journal provies a means of accumulating in one place all the information about changes in account balances
McClory Company purchases equipment for $900 and supplies for $300 from Rudnicky Co. for 1,200 cash. The entry for this transaction will incude a:
Devit to equipment $900 and devit to supplies $300 for McClory
Reiner Company purchases $300 of equipment from Laventhal Company on credit. Reiner will enter the transaction in the journal with a:
Credit to accounts payable and a devit to equipment
Szykowny Co. Buys a machine from Schott Company paying half in chash and putting the balance on account. The journal entry for this transaction by Szykowny will in clude a:
credit toa ccoutns payable and a credit to cash
Hrubec Company pays
4900 cash for a one-year insurance policy on July 1 2--5. The policy will expire on June 30, 2009. The entry on July 1 2008 is:
devit prepaired insureance $900; Credit cash $900
Kevin Walsh, Inc. Pays $300 cash dividend. The entry for this transaction will inculde a debit of $300 to:
B Dividend Income
C Dividends Expense
D Salaries Expense
Vicky Wagner Dance Studio bills a client for dancing lessons earned during the past week. The journal entry will include a credit to:
A Retained Earnings
B unearned Dance Fees
C Dance Fees Earned
D Accounts Receivable
Dance fees earned
Golden Pork Company recieves $400 from a customer on October 15 in payment f balance due for services billed on October 1. The entry by Golden Pork Company will include a credit of $400 to?
A Notes Recievable
B Service Revenue
C Accounts Receivable
D Unearned Service Revenue
On Octover 3, Mike Baker, Co. recived a cash payment for services previosly billed to a client. The company paid its telephone bill and it also bought equipment on credit. For the three transaction at least one of the entries will include a:
A Credit to REtained Earnings
B Credit to Notes Payable
C Devit to Accounts Recievable
D Credit to Accounts Payable
credit to Accounts Payable
The chart of accounts is a:
listing of the accounts and the account numbers which identify their location in the ledger
A trial balance will not balance if:
a journal is only partially posted
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