Question 1

Which of the following items would not be included in the journal entry for a transaction?

Accepted Answer

A)  the names of the source documents used to record the accounting transaction 
B)  the date the accounting transaction was entered into the accounting system 
C)  the titles of the accounts that will be used as debits and credits in the transaction 
D)  the dollar amounts used to record the debits and credits in the transaction 
A)  the names of the source documents used to record the accounting transaction 
B)  the date the accounting transaction was entered into the accounting system 
C)  the titles of the accounts that will be used as debits and credits in the transaction 
D)  the dollar amounts used to record the debits and credits in the transaction A

Question 2

A credit increases the balance of which types of accounts?

Accepted Answer

A)  revenue and assets 
B)  liabilities and expenses 
C)  shareholders' equity and liabilities 
D)  liabilities and assets 
A)  revenue and assets 
B)  liabilities and expenses 
C)  shareholders' equity and liabilities 
D)  liabilities and assets C

Question 3

Paying by cheque to settle a debt would include a:

Accepted Answer

A)  debit to Accounts Receivable and a credit to Cash 
B)  debit to Accounts Payable and a credit to Cash 
C)  debit to Accounts Payable and a credit to Accounts Receivable 
D)  debit to Cash and a credit to Accounts Receivable 
A)  debit to Accounts Receivable and a credit to Cash 
B)  debit to Accounts Payable and a credit to Cash 
C)  debit to Accounts Payable and a credit to Accounts Receivable 
D)  debit to Cash and a credit to Accounts Receivable B

Question 4

The accounting transaction to record the payment of salaries to employees would include a:

Accepted Answer

A)  debit to Cash 
B)  debit to Salary Expense 
C)  debit to Accounts Payable 
D)  credit to Salary Expense 
A)  debit to Cash 
B)  debit to Salary Expense 
C)  debit to Accounts Payable 
D)  credit to Salary Expense

Question 5

What type of account is Prepaid Rent?

Accepted Answer

A)  an expense 
B)  shareholders' equity 
C)  an asset 
D)  a liability 
A)  an expense 
B)  shareholders' equity 
C)  an asset 
D)  a liability

Question 6

The account called Accrued Liabilities is really an expense account and not a liability account.

Accepted Answer

A) True 
 B)False

Question 7

Debits are always recorded (journalized) after credits.

Accepted Answer

A) True 
 B)False

Question 8

Performing services on account would:

Accepted Answer

A)  increase net income and shareholders' equity 
B)  increase revenue and decrease shareholders' equity 
C)  increase assets and liabilities 
D)  increase assets and decrease shareholders' equity 
A)  increase net income and shareholders' equity 
B)  increase revenue and decrease shareholders' equity 
C)  increase assets and liabilities 
D)  increase assets and decrease shareholders' equity

Question 9

The right side of a T-account is always the debit side.

Accepted Answer

A) True 
 B)False

Question 10

Posting, a part of the accounting process, refers to:

Accepted Answer

A)  copying amounts from the general ledger to the financial statements 
B)  copying amounts from the financial statements to the general ledger 
C)  copying amounts from the journal to the appropriate accounts in the general ledger 
D)  copying amounts from the accounts in the general ledger to the journal 
A)  copying amounts from the general ledger to the financial statements 
B)  copying amounts from the financial statements to the general ledger 
C)  copying amounts from the journal to the appropriate accounts in the general ledger 
D)  copying amounts from the accounts in the general ledger to the journal

Question 11

A chart of accounts is:

Accepted Answer

A)  a source document 
B)  the same as a trial balance 
C)  a list of all of the accounts of the organization and their related account numbers 
D)  prepared as the last step in analyzing transactions 
A)  a source document 
B)  the same as a trial balance 
C)  a list of all of the accounts of the organization and their related account numbers 
D)  prepared as the last step in analyzing transactions

Question 12

Prepaid rent is an expense because the payment provides a future benefit of the company.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following accounts does not have a normal credit balance?

Accepted Answer

A)  Inventory 
B)  Accounts Payable 
C)  Common Shares 
D)  Retained Earnings 
A)  Inventory 
B)  Accounts Payable 
C)  Common Shares 
D)  Retained Earnings

Question 14

Every transaction affects at least two accounts.

Accepted Answer

A) True 
 B)False

Question 15

The purchase of a building with a cash down payment and a written promise to pay the balance in the future would include a:

Accepted Answer

A)  credit to Cash and a credit to Note Payable 
B)  debit to Note Payable and a credit to Cash 
C)  debit to Cash and a credit to Buildings 
D)  debit to Cash and a debit to Note Payable 
A)  credit to Cash and a credit to Note Payable 
B)  debit to Note Payable and a credit to Cash 
C)  debit to Cash and a credit to Buildings 
D)  debit to Cash and a debit to Note Payable

Question 16

Which of the following items of information would not normally be included in a journal entry?

Accepted Answer

A)  the dollar amount of the debit 
B)  the date the transaction took place 
C)  the location where the transaction took place 
D)  the title of the account debited 
A)  the dollar amount of the debit 
B)  the date the transaction took place 
C)  the location where the transaction took place 
D)  the title of the account debited

Question 17

Notes Payable is a typical example of a liability account.

Accepted Answer

A) True 
 B)False

Question 18

Performing a service on account would include a:

Accepted Answer

A)  credit to Accounts Receivable 
B)  debit to Cash 
C)  debit to Revenue 
D)  debit to Accounts Receivable 
A)  credit to Accounts Receivable 
B)  debit to Cash 
C)  debit to Revenue 
D)  debit to Accounts Receivable

Question 19

A trial balance is simply a list of all accounts and their balances at a point in time.

Accepted Answer

A) True 
 B)False

Question 20

A debit increases the balance of which types of accounts?

Accepted Answer

A)  assets and expenses 
B)  assets and shareholders' equity 
C)  liabilities and expenses 
D)  assets and liabilities 
A)  assets and expenses 
B)  assets and shareholders' equity 
C)  liabilities and expenses 
D)  assets and liabilities

Which of the following items would not be included in the journal entry for a transaction?

A credit increases the balance of which types of accounts?

Paying by cheque to settle a debt would include a:

The accounting transaction to record the payment of salaries to employees would include a:

What type of account is Prepaid Rent?

The account called Accrued Liabilities is really an expense account and not a liability account.

Debits are always recorded (journalized) after credits.

Performing services on account would:

The right side of a T-account is always the debit side.

Posting, a part of the accounting process, refers to:

A chart of accounts is:

Prepaid rent is an expense because the payment provides a future benefit of the company.

Which of the following accounts does not have a normal credit balance?

Every transaction affects at least two accounts.

The purchase of a building with a cash down payment and a written promise to pay the balance in the future would include a:

Which of the following items of information would not normally be included in a journal entry?

Notes Payable is a typical example of a liability account.

Performing a service on account would include a:

A trial balance is simply a list of all accounts and their balances at a point in time.

A debit increases the balance of which types of accounts?

The Financial Statements

Accrual Accounting and the Financial Statements

Cash and Receivables

Inventory and Cost of Goods Sold

Property, Plant, and Equipment, and Intangible Assets

Liabilities

Shareholders Equity

The Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Recording Business Transactions

Which of the following items would not be included in the journal entry for a transaction?

A credit increases the balance of which types of accounts?

Paying by cheque to settle a debt would include a:

The accounting transaction to record the payment of salaries to employees would include a:

What type of account is Prepaid Rent?

The account called Accrued Liabilities is really an expense account and not a liability account.

Debits are always recorded (journalized) after credits.

Performing services on account would:

The right side of a T-account is always the debit side.

Posting, a part of the accounting process, refers to:

A chart of accounts is:

Prepaid rent is an expense because the payment provides a future benefit of the company.

Which of the following accounts does not have a normal credit balance?

Every transaction affects at least two accounts.

The purchase of a building with a cash down payment and a written promise to pay the balance in the future would include a:

Which of the following items of information would not normally be included in a journal entry?

Notes Payable is a typical example of a liability account.

Performing a service on account would include a:

A trial balance is simply a list of all accounts and their balances at a point in time.

A debit increases the balance of which types of accounts?

The Financial Statements

Accrual Accounting and the Financial Statements

Cash and Receivables

Inventory and Cost of Goods Sold

Property, Plant, and Equipment, and Intangible Assets

Liabilities

Shareholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters