Question 1

The Owner's Capital account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a liability account?

Accepted Answer

A)  Accounts Payable 
B)  Prepaid Expense 
C)  Salaries Expense 
D)  Service Revenue 
A)  Accounts Payable 
B)  Prepaid Expense 
C)  Salaries Expense 
D)  Service Revenue

Question 3

Which one of the following account groups will decrease with a debit?

Accepted Answer

A)  assets and expenses 
B)  revenues and expenses 
C)  liabilities and revenues 
D)  assets and liabilities 
A)  assets and expenses 
B)  revenues and expenses 
C)  liabilities and revenues 
D)  assets and liabilities

Question 4

A chart of accounts is a detailed record of the changes in a particular asset, liability, or equity account during a specified period.

Accepted Answer

A) True 
 B)False

Question 5

The Salaries Payable account is a(n) ________.

Accepted Answer

A)  liability account with a normal debit balance 
B)  asset account with a normal debit balance 
C)  liability account with a normal credit balance 
D)  asset account with a normal credit balance 
A)  liability account with a normal debit balance 
B)  asset account with a normal debit balance 
C)  liability account with a normal credit balance 
D)  asset account with a normal credit balance

Question 6

When a business records the earning of service revenue, the Service Revenue account is credited.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following journal entries would be recorded if Christy Jones Company received a $3,000 cash contribution from the owner?

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 8

Which of the following statements is true of expenses?

Accepted Answer

A)  Expenses increase equity, so an expense account's normal balance is a credit balance. 
B)  Expenses decrease equity, so an expense account's normal balance is a credit balance. 
C)  Expenses increase equity, so an expense account's normal balance is a debit balance. 
D)  Expenses decrease equity, so an expense account's normal balance is a debit balance. 
A)  Expenses increase equity, so an expense account's normal balance is a credit balance. 
B)  Expenses decrease equity, so an expense account's normal balance is a credit balance. 
C)  Expenses increase equity, so an expense account's normal balance is a debit balance. 
D)  Expenses decrease equity, so an expense account's normal balance is a debit balance.

Question 9

All asset accounts and equity accounts increase with a debit.

Accepted Answer

A) True 
 B)False

Question 10

Provide an explanation for each of the following asset accounts.

Accepted Answer

The answer of Provide an explanation for each of the...

Question 11

A business renders services to a client and issues a sales invoice. The amount will be collected from the customer at a later time. Which of the following is true at the time the invoice is issued?

Accepted Answer

A)  Equity will decrease. 
B)  Total liabilities will increase. 
C)  Total assets will decrease. 
D)  Net income will increase. 
A)  Equity will decrease. 
B)  Total liabilities will increase. 
C)  Total assets will decrease. 
D)  Net income will increase.

Question 12

The following transactions for March have been journalized and posted to the proper accounts. Mar. 1 The business received a $10,000 cash contribution from the owner.
Mar) 2 Paid the first month's rent of $800.
Mar) 3 Purchased equipment by paying $4,000 cash and executing a note payable for $6,000.
Mar) 4 Purchased office supplies for $500 cash.
Mar) 5 Billed a client for $14,000 of design services completed.
Mar) 6 Received $6,000 on account for the services previously recorded.
What is the ending balance in the Service Revenue account?

Accepted Answer

A)  $16,000 
B)  $10,000 
C)  $14,000 
D)  $6,000 
A)  $16,000 
B)  $10,000 
C)  $14,000 
D)  $6,000

Question 13

A liability created when a business collects cash from customers in advance of providing services or delivering goods is called a(n) ________.

Accepted Answer

A)  notes receivable 
B)  unearned revenue 
C)  accrued liability 
D)  service revenue 
A)  notes receivable 
B)  unearned revenue 
C)  accrued liability 
D)  service revenue

Question 14

Which of the following is the order of steps to journalize an entry?

Accepted Answer

A)  Identify the accounts and the account type → Decide whether each account increases or decreases, then apply the rules of debits and credits → Record the transaction 
B)  Identify the accounts and the account type → Record the transaction → Decide whether each account increases or decreases, then apply the rules of debits and credits 
C)  Record the transaction → Identify the accounts and the account type → Decide whether each account increases or decreases, then apply the rules of debits and credits 
D)  Decide whether each account increases or decreases, then apply the rules of debits and credits → Identify the accounts and the account type → Record the transaction 
A)  Identify the accounts and the account type → Decide whether each account increases or decreases, then apply the rules of debits and credits → Record the transaction 
B)  Identify the accounts and the account type → Record the transaction → Decide whether each account increases or decreases, then apply the rules of debits and credits 
C)  Record the transaction → Identify the accounts and the account type → Decide whether each account increases or decreases, then apply the rules of debits and credits 
D)  Decide whether each account increases or decreases, then apply the rules of debits and credits → Identify the accounts and the account type → Record the transaction

Question 15

Which of the following accounts decreases with a debit?

Accepted Answer

A)  Accounts Receivable 
B)  Notes Payable 
C)  Cash 
D)  Rent Expense 
A)  Accounts Receivable 
B)  Notes Payable 
C)  Cash 
D)  Rent Expense

Question 16

An asset account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 17

A business renders services to a customer for $26,000 on account. Which of the following accounts is credited?

Accepted Answer

A)  Cash 
B)  Accounts Receivable 
C)  Service Revenue 
D)  Accounts Payable 
A)  Cash 
B)  Accounts Receivable 
C)  Service Revenue 
D)  Accounts Payable

Question 18

A business has the following transactions: * The business receives $15,000 cash and issues common stock to stockholders.
* The business purchases $600 of office supplies on account.
* The business purchases $3,000 of furniture on account.
* The business renders services to various clients totaling $15,000 on account.
* The business pays $1,500 for salaries expense and $4,500 for rent expense.
* The business pays $800 to a supplier for the office supplies purchased earlier.
* The business collects $4,000 from one of its clients for services rendered earlier in the month.
At the end of the month, all journal entries are posted to the ledger. Accounts Receivable will appear as which of the following?

Accepted Answer

The answer of A business has the following transactions: *...

Question 19

The owner's claim to the assets of a business is called equity or owner's equity.

Accepted Answer

A) True 
 B)False

Question 20

An account that normally has a debit balance may occasionally have a credit balance.

Accepted Answer

A) True 
 B)False

The Owner's Capital account is increased by a debit.

Which of the following is a liability account?

Which one of the following account groups will decrease with a debit?

A chart of accounts is a detailed record of the changes in a particular asset, liability, or equity account during a specified period.

The Salaries Payable account is a(n) ________.

When a business records the earning of service revenue, the Service Revenue account is credited.

Which of the following journal entries would be recorded if Christy Jones Company received a $3,000 cash contribution from the owner?

Which of the following statements is true of expenses?

All asset accounts and equity accounts increase with a debit.

Provide an explanation for each of the following asset accounts.

A business renders services to a client and issues a sales invoice. The amount will be collected from the customer at a later time. Which of the following is true at the time the invoice is issued?

A liability created when a business collects cash from customers in advance of providing services or delivering goods is called a(n) ________.

Which of the following is the order of steps to journalize an entry?

Which of the following accounts decreases with a debit?

An asset account is increased by a debit.

A business renders services to a customer for $26,000 on account. Which of the following accounts is credited?

The owner's claim to the assets of a business is called equity or owner's equity.

An account that normally has a debit balance may occasionally have a credit balance.

Accounting and the Business Environment

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Recording Business Transactions

The Owner's Capital account is increased by a debit.

Which of the following is a liability account?

Which one of the following account groups will decrease with a debit?

A chart of accounts is a detailed record of the changes in a particular asset, liability, or equity account during a specified period.

The Salaries Payable account is a(n) ________.

When a business records the earning of service revenue, the Service Revenue account is credited.

Which of the following journal entries would be recorded if Christy Jones Company received a $3,000 cash contribution from the owner?

Which of the following statements is true of expenses?

All asset accounts and equity accounts increase with a debit.

Provide an explanation for each of the following asset accounts.

A business renders services to a client and issues a sales invoice. The amount will be collected from the customer at a later time. Which of the following is true at the time the invoice is issued?

A liability created when a business collects cash from customers in advance of providing services or delivering goods is called a(n) ________.

Which of the following is the order of steps to journalize an entry?

Which of the following accounts decreases with a debit?

An asset account is increased by a debit.

A business renders services to a customer for $26,000 on account. Which of the following accounts is credited?

The owner's claim to the assets of a business is called equity or owner's equity.

An account that normally has a debit balance may occasionally have a credit balance.

Accounting and the Business Environment

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Filters