achivmt test answ2

7/25/2019 Achivmt Test Answ2

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9th Edition

Financial and

Managerial AccountingWarren/Reeve

Chapter Test 2A

A


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TEST 2A (Concluded)

PROBLEM 1DEBIT AND CREDIT

INSTRUCTIONS:Indicate the manner in which each of the increases and decreases in the accounts listed below would

be recorded by placing a check mark in the debit column or the credit column at the right.

Answers

Debit Credit

0. Notes Payable is decreased ....................................................................... 0. ____

1. Alex Small, Drawing is increased ............................................................... 1. ____

2. Accounts Payable is decreased ................................................................. 2. ____

For

Scoring


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3. Fees earned is decreased ......................................................................... 3. ____

4. Supplies Expense is increased .................................................................. 4. ____

5.Wages Expense is decreased ................................................................... 5. ____

6. Supplies is increased ................................................................................. 6. ____

7. Automobile is decreased ............................................................................ 7. ____

8.Accounts Receivable is increased ............................................................. 8. ____

9. Cash is decreased ..................................................................................... 9. ____

10. Insurance Expense is increased ................................................................ 10. ____


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TEST 2A (Concluded)

PROBLEM 2ANALYSIS OF TRANSACTIONS

INSTRUCTIONS:For Bush Designs, indicate the accounts to be debited and credited in recording the selected

transactions described below by inserting the letter designation for the accounts in the appropriate columns.

A.Accounts Payable E.Fees Earned I.Office Equipment M.Wages Expense

B.Accounts Receivable F.Miscellaneous Expense J.Rent Expense N.H. Loehr, Capital

C.Building G.Notes Payable K.Supplies O.H. Loehr, Drawing

D.Cash H.Notes Receivable L.Supplies Expense

For For


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TRANSACTIONS Debit Scoring Credit Scoring

0.Henry Loehr withdrew cash from the business ........................................ O 0. ____ D 0. ____

1-2.Received cash for services sold ............................................................... 1. ____ 2. ____

3-4.Purchased supplies for on account .......................................................... 3. ____ 4. ____

5-6.Purchased office equipment, paying one-half in cashand giving a note for the balance ............................................................. 5. ____ 6. ____

7-8.Paid creditors on account ......................................................................... 7. ____ 8. ____

9-10.Fees earned from cash customers and customers on account ............... 9. ____ 10. ____

11-12.Discovered an error in collecting cash on an account receivable from


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TEST 2A (Concluded)

a customer. Reimbursed the customer in cash for the overpayment ..... 11. ____ 12. ____

13-14.Received cash from customers on account ............................................. 13. ____ 14. ____

15-16.Recorded supplies used for month .......................................................... 15. ____ 16. ____

17-18.Paid rent ................................................................................................... 17. ____ 18. ____

NOTE:Each debit and credit is assigned a weight of 2%.


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PROBLEM 3CLASSIFICATION OF ACCOUNTS

INSTRUCTIONS:The customary classifications for accounts listed in the chart of accounts are listed below. Classify

each account by inserting the appropriate letter in the classification column and indicate the normal balance by inserting a

check mark in the debit column or the credit column.

CLASSESA.Assets B.Liabilities C.Owners equity D.Revenue E.Expenses

Normal Balance For

Scoring


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TEST 2A (Concluded)

ACCOUNTS Classification Debit Credit

0.Cash ....................................................................................... A 0. ____

1.Notes Receivable .................................................................... 1. ____

2.Supplies .................................................................................. 2. ____

3.Fares Earned .......................................................................... 3. ____

4.Land ........................................................................................ 4. ____

5.Prepaid Insurance .................................................................. 5. ____

6.April Saran, Capital ................................................................ 6. ____

7.Unearned Rent ....................................................................... 7. ____


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8.Rent Expense ......................................................................... 8. ____

9.Office Equipment .................................................................... 9. ____

10.Accounts Payable ................................................................... 10. ____

PROBLEM 4PRINCIPLES AND TERMINOLOGY

INSTRUCTIONS:Select from the list below the term that best represents each statement, inserting the letter

designation in the Answers column. A term may be used more than once.

TERMS


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TEST 2A (Concluded)

A.Accounts Payable F.Credit J.Journal N.Revenue

B.Accounts Receivable G.Debit K.Chart of Accounts O.Slide

C.Balance H.Drawing L.Liabilities P.Transposition

D.Capital I.Expense M.Posting Q.Trial Balance

E.Cash

ForSTATEMENTS Answers Scoring

0.The difference between the debits and credits in an account ................... C 0. ____

1.Normal balance of asset accounts ............................................................ 1. ____


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2.Owners investment in a business ............................................................. 2. ____

3.Resources used up or services consumed in generating revenues .......... 3. ____

4. The process of recording the data in an entry to the appropriateaccount ....................................................................................................... 4. ____

5.The error caused by the movement of an entire number one or morespaces to the right or left ........................................................................... 5. ____

6. Left side of an account ............................................................................... 6. ____

7.Normal balance of accounts receivable ..................................................... 7. ____

8.List for the entire group of accounts maintained by a business ................ 8. ____


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TEST 2A (Concluded)

9. Account used to record amounts owed to creditors for purchases onaccount .......................................................................................................

9. ____

10. Account used to record amounts due from customers for sales on account

.................................................................................................................... 10. ____

TEST 2A

Problem 1

Debit and Credit

Debit Credit

1.


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2.

3.

4.

5.

6.

7.

8.

9.

10.


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TEST 2A (Concluded)

Problem 2

Analysis of Transactions

Debit Credit

1. D 2. E

3. K 4. A

5. I 6. D, G

7. A 8. D

9. B, D 10. E

11. B 12. D

13. D 14. B


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15. L 16. K

17. J 18. D

Problem 3

Classification of Accounts

Classi- Normal Balance

fication Debit Credit

1. A

2. A

3. D


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TEST 2A (Concluded)

4. A

5. A

6. C

7. B

8. E

9. A

10. B

Problem 4

Principles and Terminology


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1.G

2.D

3.I

4.M

5.O

6.G

7.G

8.K

9.A

10.B


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TEST 2A (Concluded)

achivmt test answ2

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