Question 1

The owner withdrew cash from the business. Which of the following accounts is debited?

Accepted Answer

A)  Cash 
B)  Owner, Withdrawals 
C)  Accounts Payable 
D)  Common Stock 
A)  Cash 
B)  Owner, Withdrawals 
C)  Accounts Payable 
D)  Common Stock

Question 2

The Accounts Payable account of Golden Company has the following postings:   Calculate the ending balance of the account.

Accepted Answer

A)  $12,000 credit 
B)  $16,000 debit 
C)  $16,000 credit 
D)  $6,000 debit 
A)  $12,000 credit 
B)  $16,000 debit 
C)  $16,000 credit 
D)  $6,000 debit

Question 3

Which of the following journal entries would be recorded if a business purchased office supplies on account in a previous accounting period and now makes a cash payment of $750 to the supplier to settle the account?

Accepted Answer

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

Question 4

A payable involves a future receipt of cash.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is true of revenues?

Accepted Answer

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

Question 6

Amounts earned from delivering goods or services to customers are called ________.

Accepted Answer

A)  notes receivable 
B)  unearned revenues 
C)  equity 
D)  revenues 
A)  notes receivable 
B)  unearned revenues 
C)  equity 
D)  revenues

Question 7

The trial balance verifies the equality of debits and credits at a point in time.

Accepted Answer

A) True 
 B)False

Question 8

The normal balance of an account is the increase side of the account.

Accepted Answer

A) True 
 B)False

Question 9

Stewart Candle Company received a cash contribution of $40,000 from the owner of the business. Which of the following accounts will be debited?

Accepted Answer

A)  Accounts Receivable 
B)  Cash 
C)  Stewart, Capital 
D)  Accounts Payable 
A)  Accounts Receivable 
B)  Cash 
C)  Stewart, Capital 
D)  Accounts Payable

Question 10

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

Accepted Answer

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

Question 11

Transactions are first record in a ________.

Accepted Answer

A)  chart of accounts 
B)  trial balance 
C)  journal 
D)  ledger 
A)  chart of accounts 
B)  trial balance 
C)  journal 
D)  ledger

Question 12

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

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 13

Which one of the following account groups normally has a credit balance?

Accepted Answer

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

Question 14

The trial balance is an internal document used only by employees of the company.

Accepted Answer

A) True 
 B)False

Question 15

A debit always means a decrease, and a credit always means an increase.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is an asset account?

Accepted Answer

A)  Wages Payable 
B)  Notes Payable 
C)  Unearned Revenue 
D)  Accounts Receivable 
A)  Wages Payable 
B)  Notes Payable 
C)  Unearned Revenue 
D)  Accounts Receivable

Question 17

A payment of an expense in advance is called a prepaid expense.

Accepted Answer

A) True 
 B)False

Question 18

The following are the current month's balances for Jackson Company.   Calculate the total amount of credits for the trial balance.

Accepted Answer

A)  $24,500 
B)  $21,750 
C)  $25,750 
D)  $33,750 
A)  $24,500 
B)  $21,750 
C)  $25,750 
D)  $33,750

Question 19

Which of the following sequences states the order in which accounts are listed on a trial balance?

Accepted Answer

A)  Equity → Assets → Liabilities 
B)  Liabilities → Assets → Equity 
C)  Assets → Equity → Liabilities 
D)  Assets → Liabilities → Equity 
A)  Equity → Assets → Liabilities 
B)  Liabilities → Assets → Equity 
C)  Assets → Equity → Liabilities 
D)  Assets → Liabilities → Equity

Question 20

The Owner's Capital account is a separate account in the ________ category of the accounting equation.

Accepted Answer

A)  equity 
B)  asset 
C)  liability 
D)  revenue 
A)  equity 
B)  asset 
C)  liability 
D)  revenue

The owner withdrew cash from the business. Which of the following accounts is debited?

The Accounts Payable account of Golden Company has the following postings: Calculate the ending balance of the account.

Which of the following journal entries would be recorded if a business purchased office supplies on account in a previous accounting period and now makes a cash payment of $750 to the supplier to settle the account?

A payable involves a future receipt of cash.

Which of the following statements is true of revenues?

Amounts earned from delivering goods or services to customers are called ________.

The trial balance verifies the equality of debits and credits at a point in time.

The normal balance of an account is the increase side of the account.

Stewart Candle Company received a cash contribution of $40,000 from the owner of the business. Which of the following accounts will be debited?

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

Transactions are first record in a ________.

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

Which one of the following account groups normally has a credit balance?

The trial balance is an internal document used only by employees of the company.

A debit always means a decrease, and a credit always means an increase.

Which of the following is an asset account?

A payment of an expense in advance is called a prepaid expense.

The following are the current month's balances for Jackson Company. Calculate the total amount of credits for the trial balance.

Which of the following sequences states the order in which accounts are listed on a trial balance?

The Owner's Capital account is a separate account in the ________ category of the accounting equation.

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

Exam 2: Recording Business Transactions

The owner withdrew cash from the business. Which of the following accounts is debited?

The Accounts Payable account of Golden Company has the following postings: Calculate the ending balance of the account.

Which of the following journal entries would be recorded if a business purchased office supplies on account in a previous accounting period and now makes a cash payment of $750 to the supplier to settle the account?

A payable involves a future receipt of cash.

Which of the following statements is true of revenues?

Amounts earned from delivering goods or services to customers are called ________.

The trial balance verifies the equality of debits and credits at a point in time.

The normal balance of an account is the increase side of the account.

Stewart Candle Company received a cash contribution of $40,000 from the owner of the business. Which of the following accounts will be debited?

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

Transactions are first record in a ________.

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

Which one of the following account groups normally has a credit balance?

The trial balance is an internal document used only by employees of the company.

A debit always means a decrease, and a credit always means an increase.

Which of the following is an asset account?

A payment of an expense in advance is called a prepaid expense.

The following are the current month's balances for Jackson Company. Calculate the total amount of credits for the trial balance.

Which of the following sequences states the order in which accounts are listed on a trial balance?

The Owner's Capital account is a separate account in the ________ category of the accounting equation.

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