Chapter 2, The Recording Process Video Solutions, Accounting Principles , Tenth Edition

Problem 1

Which of the following statements about an account is true?
a. In its simplest form, an account consists of two parts.
b. An account is an individual accounting record of increases and decreases in specific asset. liability. and owner's equity items.
c. There are separate accounts for specific assets and liabilities but only one account for owner's equity items.
d. The left side of an account is the credit or decrease side.

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Problem 2

Debits:
a. increase both assets and liabilities.
b. decrease both assets and liabilities
c. increase assets and decrease liabilities
d. decrease assets and increase liabilities

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Problem 3

A revenue account:
a. is increased by debits.
b. is decreased by credits.
c. has a normal balance of a debit.
d. is increased by credits.

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Problem 4

Accounts that normally have debit balances are:
a. assets, expenses, and revenues
b. assets, expenses, and owner's capital.
c. assets, liabilities, and owner's drawings.
d. assets, owner's drawingr, and expenses

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06:00

Problem 5

The expanded accounting equation is:
a. Assets + Liabilities $=$ Owner's Capital + Owner's Drawings + Revenues + Expenses
b. Assets $=$ Liabilities + Owner's Capital + Owner's Drawings + Revenues - Expenses
c. Assets $=$ Liabilities - Owner's Capital - Owner's Drawings - Revenues - Expenses
d. Assets = Liabilities + Owner's Capital - Owner's Drawings + Revenues - Expenses

Puneet Prajapati

Numerade Educator

Problem 6

Which of the following is not part of the recording process?
a. Analyzing transactions.
b. Preparing a trial balance.
c. Entering transactions in a journal.
d. Posting transactions.

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Problem 7

Which of the following statements about a journal is false?
a. It is not a book of original entry.
b. It provides a chronological record of transactions.
c. It helps to locate errors because the debit and credit amounts for each entry can be readily compared.
d. It discloses in one place the complete effect of a transaction.

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02:01

Problem 8

The purchase of supplies on account should result in:
a. a debit to Supplies Expense and a credit to Cash.
b. a debit to Supplies Expense and a credit to Accounts Payable.
c. a debit to Supplies and a credit to Accounts Payable.
d. a debit to Supplies and a credit to Accounts Receivable.

Narayan Hari

Numerade Educator

Problem 9

The order of the accounts in the ledger is:
a. assets, revenues, expenses, liabilities, owner's capital, owner's drawings.
b. assets, liabilities, owner's capital, owner's drawings, revenues, expenses.
c. owner's capital, assets, revenues, expenses, liabilities, owner's drawings.
d. revenues, assets, expenses, liabilities, owner's capital, owner's drawings.

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Problem 10

A ledger:
a. contains only asset and liability accounts.
b. should show accounts in alphabetical order.
c. is a collection of the entire group of accounts maintained by a company.
d. is a book of original entry.

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Problem 11

Posting:
a. normally occurs before journalizing.
b. transfers ledger transaction data to the journal.
c. is an optional step in the recording process.
d. transfers journal entries to ledger accounts.

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Problem 12

Before posting a payment of $\$ 5,000$, the Accounts Payable of Senator Company had a normal balance of $\$ 16,000$. The balance after posting this transaction was:
a. $\$ 21,000$.
c. $\$ 11,000$.
b. 55,000 .
d. Cannot be determined.

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Problem 13

A trial balance:
a. is a list of accounts with their balances at a given time.
b. proves the mathematical accuracy of journalized transactions.
c. will not balance if a correct journal entry is posted twice. d. proves that all transactions have been recorded.

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Problem 14

A trial balance will not balance if:
a. a correct journal entry is posted twice.
b. the purchase of supplies on account is debited to Supplies and credited to Cash.
c. a $\$ 100$ cash drawing by the owner is debited to Owner's Drawings for $\$ 1,000$ and credited to Cash for $\$ 100$.
d. a $\$ 450$ payment on account is debited to Accounts Payable for $\$ 45$ and credited to Cash for $\$ 45$.

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Problem 15

The trial balance of Clooney Company had accounts with the following nomal balances: Cash \$5,000. Service Revenue $\$ 85.000$, Salaries and Wages Payable \$4,000, Salaries and Wages Expense $\$ 40,000$, Rent Expense $\$ 10,000$, Owner's Capital \$42,000; Owner's Drawings \$15,000; Equipment $\$ 61,000$. In preparing a trial balance, the total in the debit column is:
a. $\$ 131,000$,
c. $\$ 91,000$.
b. $\$ 216.000$.
d. $\$ 116,000$

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