Chapter 02 – Double-Entry Accounting
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BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
100. Which one of the statements below is not a purpose for the journal?
a.
to show increases and decreases in accounts
b.
to show chronological order of transactions
c.
to show a complete transaction in one place
d.
to help locate errors
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.01 – Purpose
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
101. A credit may signify a
a.
decrease in assets
b.
decrease in liabilities
c.
decrease in common stock
d.
decrease in revenue
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
102. A debit signifies a decrease in
a.
b.
c.
Chapter 02 – Double-Entry Accounting
Copyright Cengage Learning. Powered by Cognero.
Page 42
d.
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
103. Which of the following applications of the rules of debit and credit is true?
a.
decrease Prepaid Insurance with a credit and the normal balance is a credit
b.
increase Accounts Payable with a credit and the normal balance is a debit
c.
increase Equipment with a debit and the normal balance is a debit
d.
decrease Cash with a debit and the normal balance is a credit
ANSWER:
c
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
104. Which of the following describes the classification and normal balance of the fees earned account?
a.
asset, credit
b.
liability, credit
c.
stockholders’ equity, debit
d.
revenue, credit
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
Copyright Cengage Learning. Powered by Cognero.
Page 44
107. In which of the following types of accounts are decreases recorded by debits?
a.
b.
c.
d.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
108. In which of the following types of accounts are decreases recorded by credits?
a.
liabilities
b.
stockholders’ equity
c.
assets
d.
revenues
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
109. A credit balance in which of the following accounts would indicate a likely error?
a.
Fees Earned
b.
Salary Expense
c.
Common Stock
d.
Accounts Payable
ANSWER:
b
POINTS:
1
Chapter 02 – Double-Entry Accounting
Copyright Cengage Learning. Powered by Cognero.
Page 47
ANSWER:
c
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
115. Cash was paid by Janer‘s Cleaning Service to creditors on account. Which of the following entries for Janer’s
Cleaning Service records this transaction?
a.
Cash, debit; Common Stock, credit
b.
Accounts Payable, debit; Cash, credit
c.
Accounts Receivable, debit; Cash, credit
d.
Accounts Payable, debit; Accounts Receivable, credit
ANSWER:
b
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
116. Which of the following entries records the acquisition of office supplies on account?
a.
Office Supplies, debit; Cash, credit
b.
Cash, debit; Office Supplies, credit
c.
Office Supplies, debit; Accounts Payable, credit
d.
Accounts Receivable, debit; Office Supplies, credit
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
Chapter 02 – Double-Entry Accounting
Copyright Cengage Learning. Powered by Cognero.
Page 49
c.
Cash, debit; Fees Earned, credit
d.
Accounts Receivable, debit; Fees Earned, credit
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
120. Which of the following entries records the receipt of cash for two months’ rent? The cash was received in advance of
providing the service.
a.
Prepaid Rent, debit; Rent Revenue, credit.
b.
Cash, debit; Unearned Rent, credit.
c.
Cash, debit; Prepaid Rent, credit.
d.
Cash, debit; Rent Expense, credit.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
FNMN.WAJO.19.02-03 – LO: 02–03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
121. A client has a massage and asks the company bookkeeper to mail her the bill. The bookkeeper should make which
entry to record the invoice?
a.
No entry until the cash is received
b.
Fees Earned, debit; Accounts Receivable, credit
c.
Cash, debit; Fees Earned, credit
d.
Accounts Receivable, debit; Fees Earned, credit
ANSWER:
d
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice