151.Which of the following is true regarding normal balances of accounts?
a.All accounts have a normal debit balance.
b.The normal balance of all accounts will have either a positive or negative balance.
c.Accounts that have a normal debit balance will only have debit entries, never credit entries.
d.The normal balance is on the increase side of the account.
152.Which of the following is
nottrue with a double-entry accounting system?
a.The accounting equation remains in balance.
b.The sum of all debits is always equal to the sum of all credits in each journal entry.
c.Each business transaction will have two debits.
d.Every transaction affects at least two accounts.
153.
March6Cash2,500
Unearned Fees2,500
????????????.
What is the best explanation for this journal entry?
a.Received cash for services performed.
b.Received cash for services to be performed in the future.
c.Paid cash in advance for services to be performed.
d.Performed services for which cash is owed.
154.
April14Equipment15,000
Cash5,000
Note Payable10,000
????????????.
Which is the best explanation for this journal entry?
a.Purchased equipment; paid cash of $5,000, with the remainder to be paid in the future.
b.Purchased equipment; paid cash of $10,000, with the remainder to be received in the future.
c.Purchased equipment with cash.
d.Purchased equipment on account.
155.The process of transferring the debits and credits from the journal entries to the accounts is called
a.sliding
b.transposing
c.journalizing
d.posting
156.The posting process will include the transfer of which of the following data from the journal to the account?
a.date, amount (debit or credit)
b.date, amount (debit or credit), journal page number
c.amount (debit or credit), account number
d.date, amount (debit or credit), account number
157.The Posting Reference columns are used to trace transactions from the accounts to the journal. What will beentered in the Posting Reference column of (1) the journal and (2) the account?
a.(1) the amount of the debit or credit and (2) the journal page number
b.(1) the journal page number and (2) the date of the transaction
c.(1) the journal page number and (2) the account number
d.(1) the account number and (2) the journal page number
The chart of accounts for the Corning Company includes the following:
Account Name
Account Number
Cash11
Accounts Receivable13
Prepaid Insurance15
Accounts Payable21
Unearned Revenue24
Common Stock31
Dividends32
Fees Earned41
Salaries Expense54
Rent Expense56
Page 3 of the journal contains the following entry:
Prepaid Insurance1,530
Cash1,530
158.What is the posting reference that will be found in the cash account?
a.11
b.15
c.3
d.13
159.What is the posting reference that will be found in the prepaid insurance account?
a.11
b.15
c.3
d.13
160.What posting references will be found in the journal entry?
a. 15, 11
b. 15, 3
c. 11, 3
d. 3, 15