Question 1

Prepare a journal entry on October 12 for the fees earned on account, $14,600. Omit explanation.

Accepted Answer

Oct. 12
Accounts Rec...

Question 2

Nebraska Technologies has a condensed income statement as shown:  REQUIRED:
Prepare a horizontal analysis of Nebraska Technologies'income statements. Comment on the trends, both favorable and unfavorable.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> The trend in sales revenue is unfavorab...

Question 3

Which of the following stockholders' equity accounts follows the same debit and credit rules as liabilities?

Accepted Answer

A)  expense accounts only
B)  dividends accounts only
C)  revenue, common stock, and retained earnings accounts
D)  expense and dividends accountsE) All of the above
F) A) and B)

Question 4

When an owner invests assets in the business, the retained earnings account increases due to revenue being earned.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following entries records the receipt of cash from cash customers for services provided?

Accepted Answer

A)  Fees Earned, debit; Cash, credit
B)  Fees Earned, debit; Accounts Receivable, credit
C)  Cash, debit; Fees Earned, credit
D)  Accounts Receivable, debit; Fees Earned, creditE) B) and D)
F) A) and B)

Question 6

The Unearned Revenues account is an example of a liability.

Accepted Answer

A) True 
 B)False

Question 7

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account.a.Credit side
b.Debit side
-Common Stock

Accepted Answer

The answer of For each of the following accounts, indicate...

Question 8

Which of the following describes the classification and normal balance of the fees earned account?

Accepted Answer

A)  asset, credit
B)  liability, credit
C)  stockholders' equity, debit
D)  revenue, creditE) A) and B)
F) A) and C)

Question 9

Even when a trial balance is in balance, there may be errors in the individual accounts.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following applications of the rules of debit and credit is true?

Accepted Answer

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 creditE) A) and B)
F) A) and C)

Question 11

Faso Fabricating, Inc. and Spinoza Fabrication Corp. are in the same industry and are located in the same region of the country. They have condensed income statements as shown.  Using horizontal analysis, calculate the percent change for sales for each company. Round percentages to one decimal place.

Accepted Answer

A)  Faso: 27.5%; Spinoza: 27.8%
B)  Faso: 6.6%; Spinoza: 6.4%
C)  Faso: 7.1%; Spinoza: 6.8%
D)  Faso: 16.3%; Spinoza: 7.0%E) A) and D)
F) C) and D)

Question 12

The stockholders' equity will be reduced by all of the following except

Accepted Answer

A)  revenues
B)  expenses
C)  dividends
D)  all of theseE) C) and D)
F) A) and D)

Question 13

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Accepted Answer

A)  Cash, debit; Wages Expense, credit
B)  Wages Payable, debit; Wages Expense, credit
C)  Wages Expense, debit; Cash, credit
D)  Cash, debit; Wages Payable, creditE) B) and C)
F) A) and B)

Question 14

Prepaid expenses are an example of an expense.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions

Even when a trial balance is in balance, there may be errors in the individual accounts.

Correct Answer
verified

Nebraska Technologies has a condensed income statement as shown: REQUIRED: Prepare a horizontal analysis of Nebraska Technologies'income statements. Comment on the trends, both favorable and unfavorable.

Correct Answer
verified
The trend in sales revenue is unfavorab...
View Answer

Which of the following entries records the receipt of cash from cash customers for services provided?

Correct Answer
verified

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account.a.Credit side b.Debit side -Common Stock

Correct Answer
verified

The stockholders' equity will be reduced by all of the following except

Correct Answer
verified

Which of the following stockholders' equity accounts follows the same debit and credit rules as liabilities?

Correct Answer
verified

Prepare a journal entry on October 12 for the fees earned on account, $14,600. Omit explanation.

Correct Answer
verified
Oct. 12
Accounts Rec...
View Answer

Which of the following describes the classification and normal balance of the fees earned account?

Correct Answer
verified

Prepaid expenses are an example of an expense.

Correct Answer
verified

When an owner invests assets in the business, the retained earnings account increases due to revenue being earned.

Correct Answer
verified

Which of the following applications of the rules of debit and credit is true?

Correct Answer
verified

Faso Fabricating, Inc. and Spinoza Fabrication Corp. are in the same industry and are located in the same region of the country. They have condensed income statements as shown. Using horizontal analysis, calculate the percent change for sales for each company. Round percentages to one decimal place.

Correct Answer
verified

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Correct Answer
verified

The Unearned Revenues account is an example of a liability.

Correct Answer
verified

Exam 2: Analyzing Transactions

Even when a trial balance is in balance, there may be errors in the individual accounts.

Correct AnswerverifiedShow Answer

Nebraska Technologies has a condensed income statement as shown: REQUIRED: Prepare a horizontal analysis of Nebraska Technologies'income statements. Comment on the trends, both favorable and unfavorable.

Correct Answerverified The trend in sales revenue is unfavorab...View AnswerShow Answer

Which of the following entries records the receipt of cash from cash customers for services provided?

Correct AnswerverifiedShow Answer

For each of the following accounts, indicate whether its normal balance is on the credit side or the debit side of the T account.a.Credit side b.Debit side -Common Stock

Correct AnswerverifiedShow Answer

The stockholders' equity will be reduced by all of the following except

Correct AnswerverifiedShow Answer

Which of the following stockholders' equity accounts follows the same debit and credit rules as liabilities?

Correct AnswerverifiedShow Answer

Prepare a journal entry on October 12 for the fees earned on account, $14,600. Omit explanation.

Correct AnswerverifiedOct. 12Accounts Rec...View AnswerShow Answer

Which of the following describes the classification and normal balance of the fees earned account?

Correct AnswerverifiedShow Answer

Prepaid expenses are an example of an expense.

Correct AnswerverifiedShow Answer

When an owner invests assets in the business, the retained earnings account increases due to revenue being earned.

Correct AnswerverifiedShow Answer

Which of the following applications of the rules of debit and credit is true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An overpayment error was discovered in computing and paying the wages of a Jamison Tree Trimming employee. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make?

Correct AnswerverifiedShow Answer

The Unearned Revenues account is an example of a liability.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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The trend in sales revenue is unfavorab...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified
Oct. 12
Accounts Rec...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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