The following are line items from the horizontal analysis of an income statement:
Which of the line items shows cause for concern?
a. Supplies expense
b. Fees earned
c. Wages expense
d. All of these choices are correct.
c. is the answer
2. Claremore Company received $7,000 as payment from Tulsa Company for a sale made on
account in the previous month. Which of the following is the journal entry the company should
record?
a.
b.
c.
d.
c. is the answer
The trial balance will include
a. the ending balance of each account.
b. only the debits of each account.
c. only balance sheet accounts.
d. only the credits of each account.
The right-hand side of the T account is called
a. the entry side.
b. the credit side.
c. the balance side.
, d. the debit side.
The normal balance of an asset account is
a. zero.
b. a credit.
c. a debit.
d. negative.
The owner, Marcus James, withdrew $3,000 from the business for personal use. Which of the
following is the journal entry the company should record?
a.
b.
c.
Which of the following will not result in the trial balance being unequal?
a. A debit of $400 was posted to Supplies as a debit of $40.
b. A debit of $400 was incorrectly posted to Supplies instead of Supplies Expense.
c. A debit of $400 to Supplies was completely omitted.
d. A debit of $400 was incorrectly posted as a credit $400 to Supplies.
Incorrect. Posting a part of a transaction correctly as a debit or credit but to the wrong account is not
cause for the trial balance to be unequal.
When a transaction is journalized, which account is listed first?
a. the account to be debited
b. the account to be credited
c. the asset account
Horizontal analysis of a balance sheet
a. uses the most recent year as the base year.
Which of the line items shows cause for concern?
a. Supplies expense
b. Fees earned
c. Wages expense
d. All of these choices are correct.
c. is the answer
2. Claremore Company received $7,000 as payment from Tulsa Company for a sale made on
account in the previous month. Which of the following is the journal entry the company should
record?
a.
b.
c.
d.
c. is the answer
The trial balance will include
a. the ending balance of each account.
b. only the debits of each account.
c. only balance sheet accounts.
d. only the credits of each account.
The right-hand side of the T account is called
a. the entry side.
b. the credit side.
c. the balance side.
, d. the debit side.
The normal balance of an asset account is
a. zero.
b. a credit.
c. a debit.
d. negative.
The owner, Marcus James, withdrew $3,000 from the business for personal use. Which of the
following is the journal entry the company should record?
a.
b.
c.
Which of the following will not result in the trial balance being unequal?
a. A debit of $400 was posted to Supplies as a debit of $40.
b. A debit of $400 was incorrectly posted to Supplies instead of Supplies Expense.
c. A debit of $400 to Supplies was completely omitted.
d. A debit of $400 was incorrectly posted as a credit $400 to Supplies.
Incorrect. Posting a part of a transaction correctly as a debit or credit but to the wrong account is not
cause for the trial balance to be unequal.
When a transaction is journalized, which account is listed first?
a. the account to be debited
b. the account to be credited
c. the asset account
Horizontal analysis of a balance sheet
a. uses the most recent year as the base year.
