Question 1

For each transaction, identify which account is debited and which account is credited. Use proper account titles.

Accepted Answer

The answer of For each transaction, identify which account is...

Question 2

A business purchased land for $250,000 cash. Record the transaction in the journal.

Accepted Answer

The answer of A business purchased land for $250,000 cash....

Question 3

A business makes a cash payment of $12,000 to a supplier for supplies purchased two weeks earlier. Which of the following accounts is debited?

Accepted Answer

A)  Cash 
B)  Accounts Payable 
C)  Supplies 
D)  Accounts Receivable 
A)  Cash 
B)  Accounts Payable 
C)  Supplies 
D)  Accounts Receivable

Question 4

A business collects cash from a customer for services that were preformed one month earlier. 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 5

Camile Plastics Company had the following total assets, liabilities, and equity as of December 31.   What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places.)

Accepted Answer

A)  30.93% 
B)  69.07% 
C)  100.00% 
D)  44.78% 
A)  30.93% 
B)  69.07% 
C)  100.00% 
D)  44.78%

Question 6

The following are the current month's balances for Global Enterprises.   What is the total amount of debits for the trial balance?

Accepted Answer

A)  $26,000 
B)  $27,600 
C)  $32,000 
D)  $33,600 
A)  $26,000 
B)  $27,600 
C)  $32,000 
D)  $33,600

Question 7

Liabilities are economic resources that are expected to benefit the business in the future.

Accepted Answer

A) True 
 B)False

Question 8

When a business records an accrued utility liability, the Utilities Expense account is credited.

Accepted Answer

A) True 
 B)False

Question 9

In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the total increases are $4,900 and the total decreases are $2,400. This means that the ending balance of the account is a credit balance of $2,500.

Accepted Answer

A) True 
 B)False

Question 10

The following are the current month's balances for Toys Galore before preparing the trial balance.   What amount should be shown for R. Schwartz, Capital on the trial balance?

Accepted Answer

A)  $56,000 
B)  $31,000 
C)  $11,500 
D)  $27,000 
A)  $56,000 
B)  $31,000 
C)  $11,500 
D)  $27,000

Question 11

The percentage of assets that are financed with liabilities can be calculated using the ________.

Accepted Answer

A)  accounting equation 
B)  debt ratio 
C)  journal 
D)  ledger 
A)  accounting equation 
B)  debt ratio 
C)  journal 
D)  ledger

Question 12

A business makes a payment of $1,400 on a note payable. Which of the following journal entries would be recorded?

Accepted Answer

A)  Cash is credited and Notes Payable is debited for $1,400. 
B)  Notes Payable is credited and Cash is debited for $1,400. 
C)  Cash is credited and Financing Expense is debited for $1,400. 
D)  Cash is debited and Financing Revenue is credited for $1,400. 
A)  Cash is credited and Notes Payable is debited for $1,400. 
B)  Notes Payable is credited and Cash is debited for $1,400. 
C)  Cash is credited and Financing Expense is debited for $1,400. 
D)  Cash is debited and Financing Revenue is credited for $1,400.

Question 13

A business renders services to its customer for $50,000 on account. Record the transaction in the journal.

Accepted Answer

The answer of A business renders services to its customer...

Question 14

________ represents a debt owed for renting a building currently.

Accepted Answer

A)  Prepaid Rent 
B)  Rent Payable 
C)  Rent Revenue 
D)  Rent Expense 
A)  Prepaid Rent 
B)  Rent Payable 
C)  Rent Revenue 
D)  Rent Expense

Question 15

A business pays $500 cash for office supplies. Which of the following accounts is debited?

Accepted Answer

A)  Cash 
B)  Accounts Payable 
C)  Office Supplies 
D)  Utilities Expense 
A)  Cash 
B)  Accounts Payable 
C)  Office Supplies 
D)  Utilities Expense

Question 16

Which of the following accounts decreases with a credit?

Accepted Answer

A)  Cash 
B)  Owner, Capital 
C)  Accounts Payable 
D)  Notes Payable 
A)  Cash 
B)  Owner, Capital 
C)  Accounts Payable 
D)  Notes Payable

Question 17

A business repays the amount borrowed on a note with cash. Which of the following accounts is debited?

Accepted Answer

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

Question 18

A business purchases equipment for $8,000 cash. Which of the following accounts is credited?

Accepted Answer

A)  Cash 
B)  Accounts Payable 
C)  Owner, Capital 
D)  Equipment 
A)  Cash 
B)  Accounts Payable 
C)  Owner, Capital 
D)  Equipment

Question 19

A trial balance summarizes the ledger by listing all the accounts with their balances at a point in time.

Accepted Answer

A) True 
 B)False

Question 20

A journal entry for a $70 payment for rent expense was posted as a debit to Salaries Expense and a credit to Cash. Which of the following statements correctly states the effect of the error on the trial balance?

Accepted Answer

A)  The sum of the credits will equal the sum of the debits. 
B)  The sum of the debits will exceed the sum of the credits by $70. 
C)  The sum of the debits will exceed the sum of the credits by $140. 
D)  The sum of the credits will exceed the sum of the debits by $140. 
A)  The sum of the credits will equal the sum of the debits. 
B)  The sum of the debits will exceed the sum of the credits by $70. 
C)  The sum of the debits will exceed the sum of the credits by $140. 
D)  The sum of the credits will exceed the sum of the debits by $140.

For each transaction, identify which account is debited and which account is credited. Use proper account titles.

A business purchased land for $250,000 cash. Record the transaction in the journal.

A business makes a cash payment of $12,000 to a supplier for supplies purchased two weeks earlier. Which of the following accounts is debited?

A business collects cash from a customer for services that were preformed one month earlier. Which of the following accounts is credited?

Camile Plastics Company had the following total assets, liabilities, and equity as of December 31. What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places.)

The following are the current month's balances for Global Enterprises. What is the total amount of debits for the trial balance?

Liabilities are economic resources that are expected to benefit the business in the future.

When a business records an accrued utility liability, the Utilities Expense account is credited.

In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the total increases are $4,900 and the total decreases are $2,400. This means that the ending balance of the account is a credit balance of $2,500.

The following are the current month's balances for Toys Galore before preparing the trial balance. What amount should be shown for R. Schwartz, Capital on the trial balance?

The percentage of assets that are financed with liabilities can be calculated using the ________.

A business makes a payment of $1,400 on a note payable. Which of the following journal entries would be recorded?

A business renders services to its customer for $50,000 on account. Record the transaction in the journal.

________ represents a debt owed for renting a building currently.

A business pays $500 cash for office supplies. Which of the following accounts is debited?

Which of the following accounts decreases with a credit?

A business repays the amount borrowed on a note with cash. Which of the following accounts is debited?

A business purchases equipment for $8,000 cash. Which of the following accounts is credited?

A trial balance summarizes the ledger by listing all the accounts with their balances at a point in time.

A journal entry for a $70 payment for rent expense was posted as a debit to Salaries Expense and a credit to Cash. Which of the following statements correctly states the effect of the error on the trial 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

For each transaction, identify which account is debited and which account is credited. Use proper account titles.

A business purchased land for $250,000 cash. Record the transaction in the journal.

A business makes a cash payment of $12,000 to a supplier for supplies purchased two weeks earlier. Which of the following accounts is debited?

A business collects cash from a customer for services that were preformed one month earlier. Which of the following accounts is credited?

Camile Plastics Company had the following total assets, liabilities, and equity as of December 31. What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places.)

The following are the current month's balances for Global Enterprises. What is the total amount of debits for the trial balance?

Liabilities are economic resources that are expected to benefit the business in the future.

When a business records an accrued utility liability, the Utilities Expense account is credited.

In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the total increases are $4,900 and the total decreases are $2,400. This means that the ending balance of the account is a credit balance of $2,500.

The following are the current month's balances for Toys Galore before preparing the trial balance. What amount should be shown for R. Schwartz, Capital on the trial balance?

The percentage of assets that are financed with liabilities can be calculated using the ________.

A business makes a payment of $1,400 on a note payable. Which of the following journal entries would be recorded?

A business renders services to its customer for $50,000 on account. Record the transaction in the journal.

________ represents a debt owed for renting a building currently.

A business pays $500 cash for office supplies. Which of the following accounts is debited?

Which of the following accounts decreases with a credit?

A business repays the amount borrowed on a note with cash. Which of the following accounts is debited?

A business purchases equipment for $8,000 cash. Which of the following accounts is credited?

A trial balance summarizes the ledger by listing all the accounts with their balances at a point in time.

A journal entry for a $70 payment for rent expense was posted as a debit to Salaries Expense and a credit to Cash. Which of the following statements correctly states the effect of the error on the trial 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