Question 1

Identify the account below that is classified as a liability account:

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Salaries Expense 
D) Common Stock 
E) Equipment 
A) Cash 
B) Accounts Payable 
C) Salaries Expense 
D) Common Stock 
E) Equipment

Question 2

A debit is used to record an increase in all of the following accounts except:

Accepted Answer

A) Supplies 
B) Cash 
C) Accounts Payable 
D) Dividends 
E) Prepaid Insurance 
A) Supplies 
B) Cash 
C) Accounts Payable 
D) Dividends 
E) Prepaid Insurance

Question 3

Unearned revenues are classified as liabilities.

Accepted Answer

A) True 
 B)False

Question 4

When a company bills a customer for $700 for services rendered, the journal entry to record this transaction will include a $700 debit to Services Revenue.

Accepted Answer

A) True 
 B)False

Question 5

A company's chart of accounts is a list of all the accounts used and includes an identification number assigned to each account.

Accepted Answer

A) True 
 B)False

Question 6

A debit entry is always an increase in the account.

Accepted Answer

A) True 
 B)False

Question 7

A general journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 8

All of the following statements accurately describe the debt ratio except.

Accepted Answer

A) It is use to both internal and external users of accounting information. 
B) A relatively high ratio is always desirable. 
C) The dividing line for a high and low ratio varies from industry to industry. 
D) Many factors such as a company's age, stability, profitability and cash flow influence the determination of what would be interpreted as a high versus a low ratio. 
E) The ratio might be used to help determine if a company is capable of increasing its income by obtaining further debt. 
A) It is use to both internal and external users of accounting information. 
B) A relatively high ratio is always desirable. 
C) The dividing line for a high and low ratio varies from industry to industry. 
D) Many factors such as a company's age, stability, profitability and cash flow influence the determination of what would be interpreted as a high versus a low ratio. 
E) The ratio might be used to help determine if a company is capable of increasing its income by obtaining further debt.

Question 9

A company had total assets of $350,000, total liabilities of $101,500 and total equity of $248,500. Calculate the company's debt ratio.

Accepted Answer

Debt Ratio = Total L

Question 10

Asset accounts are normally decreased by debits.

Accepted Answer

A) True 
 B)False

Question 11

Identify the account below that is classified as a liability in a company's chart of accounts:

Accepted Answer

A) Cash 
B) Unearned Revenue 
C) Salaries Expense 
D) Accounts Receivable 
E) Supplies 
A) Cash 
B) Unearned Revenue 
C) Salaries Expense 
D) Accounts Receivable 
E) Supplies

Question 12

At a given point in time, a business's trial balance is a list of all of its general ledger accounts and their balances.

Accepted Answer

A) True 
 B)False

Question 13

A ____________ gives a complete record of each transaction in one place, and shows debits and credits for each transaction.

Accepted Answer

The answer of A ____________ gives a complete record of...

Question 14

All of the following are asset accounts except:

Accepted Answer

A) Accounts Receivable. 
B) Buildings. 
C) Supplies expense. 
D) Equipment. 
E) Prepaid insurance. 
A) Accounts Receivable. 
B) Buildings. 
C) Supplies expense. 
D) Equipment. 
E) Prepaid insurance.

Question 15

Wiley Consulting purchased $7,000 worth of supplies and paid cash immediately. Which of the following general journal entries will Wiley Consulting make to record this transaction?

Accepted Answer

A) $$\begin{array} { | l | r | r | } 
\hline \text { Accounts Payable } & 7,000 & \
\hline \text { Supplies } & & 7,000 \
\hline \hline
\end{array}$$ 
B) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 7,000 & \
\hline \text { Supplies } & & 7,000 \
\hline
\end{array}$$ 
C) $$\begin{array} { | c | r | r | } 
\hline \text { Supplies } & 7,000 & \
\hline \text { Cash } & & 7,000 \
\hline
\end{array}$$ 
D) $$\begin{array} { | l | r | r | } 
\hline \text { Supplies } & 7,000 & \
\hline \text { Accounts Payable } & & 7,000 \
\hline \hline
\end{array}$$ 
E) $$\begin{array} { | l | r | r | } 
\hline \text { Supplies Expense } & 7,000 & \
\hline \text { Accounts Payable } & & 7,000 \
\hline
\end{array}$$ 
A) $$\begin{array} { | l | r | r | } 
\hline \text { Accounts Payable } & 7,000 & \
\hline \text { Supplies } & & 7,000 \
\hline \hline
\end{array}$$ 
B) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 7,000 & \
\hline \text { Supplies } & & 7,000 \
\hline
\end{array}$$ 
C) $$\begin{array} { | c | r | r | } 
\hline \text { Supplies } & 7,000 & \
\hline \text { Cash } & & 7,000 \
\hline
\end{array}$$ 
D) $$\begin{array} { | l | r | r | } 
\hline \text { Supplies } & 7,000 & \
\hline \text { Accounts Payable } & & 7,000 \
\hline \hline
\end{array}$$ 
E) $$\begin{array} { | l | r | r | } 
\hline \text { Supplies Expense } & 7,000 & \
\hline \text { Accounts Payable } & & 7,000 \
\hline
\end{array}$$

Question 16

Jackson Advertising Co. had assets of $475,000; liabilities of $275,500; and equity of $199,500. Calculate its debt ratio.

Accepted Answer

Debt Ratio = Total L

Question 17

A _______________ is a list of all the accounts used by a company and their identification codes but does not contain the balances.

Accepted Answer

The answer of A _______________ is a list of all...

Question 18

Select the account below that normally has a credit balance.

Accepted Answer

A) Cash. 
B) Office Equipment. 
C) Wages Payable. 
D) Dividends. 
E) Sales Salaries Expense. 
A) Cash. 
B) Office Equipment. 
C) Wages Payable. 
D) Dividends. 
E) Sales Salaries Expense.

Question 19

Source documents provide evidence of business transactions and are the basis for accounting entries.

Accepted Answer

A) True 
 B)False

Question 20

Identify the item below that would cause the trial balance to not balance.

Accepted Answer

A) A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash. 
B) The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and credit to Accounts Payable. 
C) A $50 cash receipt for the performance of a service was not recorded at all. 
D) The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200. 
E) The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750. 
A) A $1,000 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash. 
B) The purchase of office supplies on account for $3,250 was erroneously recorded in the journal as $2,350 debit to Office Supplies and credit to Accounts Payable. 
C) A $50 cash receipt for the performance of a service was not recorded at all. 
D) The purchase of office equipment for $1,200 was posted as a debit to Office Supplies and a credit to Cash for $1,200. 
E) The cash payment of a $750 account payable was posted as a debit to Accounts Payable and a debit to Cash for $750.

Identify the account below that is classified as a liability account:

A debit is used to record an increase in all of the following accounts except:

Unearned revenues are classified as liabilities.

When a company bills a customer for $700 for services rendered, the journal entry to record this transaction will include a $700 debit to Services Revenue.

A company's chart of accounts is a list of all the accounts used and includes an identification number assigned to each account.

A debit entry is always an increase in the account.

A general journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction.

All of the following statements accurately describe the debt ratio except.

A company had total assets of $350,000, total liabilities of $101,500 and total equity of $248,500. Calculate the company's debt ratio.

Asset accounts are normally decreased by debits.

Identify the account below that is classified as a liability in a company's chart of accounts:

At a given point in time, a business's trial balance is a list of all of its general ledger accounts and their balances.

A ____________ gives a complete record of each transaction in one place, and shows debits and credits for each transaction.

All of the following are asset accounts except:

Wiley Consulting purchased $7,000 worth of supplies and paid cash immediately. Which of the following general journal entries will Wiley Consulting make to record this transaction?

Jackson Advertising Co. had assets of $475,000; liabilities of $275,500; and equity of $199,500. Calculate its debt ratio.

A _______________ is a list of all the accounts used by a company and their identification codes but does not contain the balances.

Select the account below that normally has a credit balance.

Source documents provide evidence of business transactions and are the basis for accounting entries.

Identify the item below that would cause the trial balance to not balance.

Accounting in Business

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Filters

Exam 2: Accounting for Business Transactions

Identify the account below that is classified as a liability account:

A debit is used to record an increase in all of the following accounts except:

Unearned revenues are classified as liabilities.

When a company bills a customer for $700 for services rendered, the journal entry to record this transaction will include a $700 debit to Services Revenue.

A company's chart of accounts is a list of all the accounts used and includes an identification number assigned to each account.

A debit entry is always an increase in the account.

A general journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction.

All of the following statements accurately describe the debt ratio except.

A company had total assets of $350,000, total liabilities of $101,500 and total equity of $248,500. Calculate the company's debt ratio.

Asset accounts are normally decreased by debits.

Identify the account below that is classified as a liability in a company's chart of accounts:

At a given point in time, a business's trial balance is a list of all of its general ledger accounts and their balances.

A ____________ gives a complete record of each transaction in one place, and shows debits and credits for each transaction.

All of the following are asset accounts except:

Wiley Consulting purchased $7,000 worth of supplies and paid cash immediately. Which of the following general journal entries will Wiley Consulting make to record this transaction?

Jackson Advertising Co. had assets of $475,000; liabilities of $275,500; and equity of $199,500. Calculate its debt ratio.

A _______________ is a list of all the accounts used by a company and their identification codes but does not contain the balances.

Select the account below that normally has a credit balance.

Source documents provide evidence of business transactions and are the basis for accounting entries.

Identify the item below that would cause the trial balance to not balance.

Accounting in Business

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Filters