Question 1

Which of the following is NOT an asset account?

Accepted Answer

A) Prepaid Rent 
B) Accounts Receivable 
C) Common Stock 
D) All of these are asset accounts. 
A) Prepaid Rent 
B) Accounts Receivable 
C) Common Stock 
D) All of these are asset accounts.

Question 2

When the trial balance is out of balance due to an incorrect posting of a debit or a credit, the difference is evenly divisibly by 2.

Accepted Answer

A) True 
 B)False

Question 3

The dividends account indicates an increase in common stock.

Accepted Answer

A) True 
 B)False

Question 4

When using a four- column ledger account format, the initial pair of columns is used to show the:

Accepted Answer

A) account balance. 
B) names of the accounts being debited and credited. 
C) debit and credit amounts posted from journal entries. 
D) transactions date and journal reference. 
A) account balance. 
B) names of the accounts being debited and credited. 
C) debit and credit amounts posted from journal entries. 
D) transactions date and journal reference.

Question 5

Consider the following transactions: I. Borrowed cash on a note payable, $80,000
II. Provided services on account, $10,000
III. Received cash from a customer as payment on account, $8,000
IV. Received a utility bill, $1,200 Total assets would be:

Accepted Answer

A) $96,800. 
B) $98,000. 
C) $90,000. 
D) $88,000. 
A) $96,800. 
B) $98,000. 
C) $90,000. 
D) $88,000.

Question 6

A company received cash in exchange for issuing stock. This transaction increased assets and:

Accepted Answer

A) increased liabilities. 
B) increased revenues. 
C) increased expenses. 
D) increased equity. 
A) increased liabilities. 
B) increased revenues. 
C) increased expenses. 
D) increased equity.

Question 7

The collection of cash from a cash sale would:

Accepted Answer

A) have no effect on net income or stockholders' equity. 
B) increase assets and decrease liabilities. 
C) decrease assets and increase net income. 
D) increase assets and stockholders' equity. 
A) have no effect on net income or stockholders' equity. 
B) increase assets and decrease liabilities. 
C) decrease assets and increase net income. 
D) increase assets and stockholders' equity.

Question 8

The normal balance for any account is always the side of the account debit or credit)where the largest amount is found.

Accepted Answer

A) True 
 B)False

Question 9

Every business transaction involves at least one debit and one credit part of the transaction.

Accepted Answer

A) True 
 B)False

Question 10

The proper order for the accounting process is:

Accepted Answer

A) transacting, journalizing, posting and closing. 
B) posting, transacting, closing and journalizing. 
C) posting, closing, transacting and journalizing. 
D) transacting, posting, journalizing and closing. 
A) transacting, journalizing, posting and closing. 
B) posting, transacting, closing and journalizing. 
C) posting, closing, transacting and journalizing. 
D) transacting, posting, journalizing and closing.

Question 11

The trial balance is used to determine whether:

Accepted Answer

A) total assets equal total liabilities. 
B) total revenues plus gains equal total expenses plus losses. 
C) total increases in accounts equal total decreases in accounts. 
D) total debits equal total credits. 
A) total assets equal total liabilities. 
B) total revenues plus gains equal total expenses plus losses. 
C) total increases in accounts equal total decreases in accounts. 
D) total debits equal total credits.

Question 12

Debits are always recorded journalized)before credits.

Accepted Answer

A) True 
 B)False

Question 13

Consider the following transactions: I. Borrowed cash on a note payable, $80,000
II. Provided services on account, $10,000
III. Received cash from a customer as payment on account, $8,000
IV. Received a utility bill, $1,200 Total liabilities would be:

Accepted Answer

A) $98,000. 
B) $1,200. 
C) $81,200. 
D) $80,000. 
A) $98,000. 
B) $1,200. 
C) $81,200. 
D) $80,000.

Question 14

If a posting error has occurred when recording a transaction, then the out- of- balance amount will be evenly divisible by:

Accepted Answer

A) 5. 
B) 2. 
C) 9. 
D) 11. 
A) 5. 
B) 2. 
C) 9. 
D) 11.

Question 15

Paying a utility bill as soon as it was received would:

Accepted Answer

A) increase owners' equity. 
B) decrease revenues. 
C) increase expenses. 
D) increase liabilities. 
A) increase owners' equity. 
B) decrease revenues. 
C) increase expenses. 
D) increase liabilities.

Question 16

The purchase of office equipment for cash would increase both an asset and a liability account.

Accepted Answer

A) True 
 B)False

Question 17

Which accounts are increased by debits?

Accepted Answer

A) Assets, expenses and owners' equity 
B) Assets and owners' equity 
C) Expenses and owners' equity 
D) Assets, expenses and dividends 
A) Assets, expenses and owners' equity 
B) Assets and owners' equity 
C) Expenses and owners' equity 
D) Assets, expenses and dividends

Question 18

The payment of an amount owed to a creditor would:

Accepted Answer

A) decrease liabilities. 
B) decrease assets. 
C) increase net income. 
D) both decrease assets and decrease liabilities. 
A) decrease liabilities. 
B) decrease assets. 
C) increase net income. 
D) both decrease assets and decrease liabilities.

Question 19

A trial balance is a list of all accounts and their balances for a period of time.

Accepted Answer

A) True 
 B)False

Question 20

Paying a dividend to the company's stockholders would include a debit to:

Accepted Answer

A) Accounts Payable and a credit to Retained Earnings. 
B) Retained Earnings and a credit to Cash. 
C) Dividends and a credit to Cash. 
D) Cash and a credit to Dividends. 
A) Accounts Payable and a credit to Retained Earnings. 
B) Retained Earnings and a credit to Cash. 
C) Dividends and a credit to Cash. 
D) Cash and a credit to Dividends.

Which of the following is NOT an asset account?

When the trial balance is out of balance due to an incorrect posting of a debit or a credit, the difference is evenly divisibly by 2.

The dividends account indicates an increase in common stock.

When using a four- column ledger account format, the initial pair of columns is used to show the:

Consider the following transactions: I. Borrowed cash on a note payable, $80,000 II. Provided services on account, $10,000 III. Received cash from a customer as payment on account, $8,000 IV. Received a utility bill, $1,200 Total assets would be:

A company received cash in exchange for issuing stock. This transaction increased assets and:

The collection of cash from a cash sale would:

The normal balance for any account is always the side of the account debit or credit)where the largest amount is found.

Every business transaction involves at least one debit and one credit part of the transaction.

The proper order for the accounting process is:

The trial balance is used to determine whether:

Debits are always recorded journalized)before credits.

Consider the following transactions: I. Borrowed cash on a note payable, $80,000 II. Provided services on account, $10,000 III. Received cash from a customer as payment on account, $8,000 IV. Received a utility bill, $1,200 Total liabilities would be:

If a posting error has occurred when recording a transaction, then the out- of- balance amount will be evenly divisible by:

Paying a utility bill as soon as it was received would:

The purchase of office equipment for cash would increase both an asset and a liability account.

Which accounts are increased by debits?

The payment of an amount owed to a creditor would:

A trial balance is a list of all accounts and their balances for a period of time.

Paying a dividend to the company's stockholders would include a debit to:

The Financial Statements

Accrual Accounting and Income

Internal Control and Cash

Short-Term Investments Receivables

Inventory and Cost of Goods Sold

Plant Assets and Intangibles

Liabilities

Stockholders Equity

Long-Term Investments and International Operations

The Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Transaction Analysis

Which of the following is NOT an asset account?

When the trial balance is out of balance due to an incorrect posting of a debit or a credit, the difference is evenly divisibly by 2.

The dividends account indicates an increase in common stock.

When using a four- column ledger account format, the initial pair of columns is used to show the:

Consider the following transactions: I. Borrowed cash on a note payable, $80,000 II. Provided services on account, $10,000 III. Received cash from a customer as payment on account, $8,000 IV. Received a utility bill, $1,200 Total assets would be:

A company received cash in exchange for issuing stock. This transaction increased assets and:

The collection of cash from a cash sale would:

The normal balance for any account is always the side of the account debit or credit)where the largest amount is found.

Every business transaction involves at least one debit and one credit part of the transaction.

The proper order for the accounting process is:

The trial balance is used to determine whether:

Debits are always recorded journalized)before credits.

Consider the following transactions: I. Borrowed cash on a note payable, $80,000 II. Provided services on account, $10,000 III. Received cash from a customer as payment on account, $8,000 IV. Received a utility bill, $1,200 Total liabilities would be:

If a posting error has occurred when recording a transaction, then the out- of- balance amount will be evenly divisible by:

Paying a utility bill as soon as it was received would:

The purchase of office equipment for cash would increase both an asset and a liability account.

Which accounts are increased by debits?

The payment of an amount owed to a creditor would:

A trial balance is a list of all accounts and their balances for a period of time.

Paying a dividend to the company's stockholders would include a debit to:

The Financial Statements

Accrual Accounting and Income

Internal Control and Cash

Short-Term Investments Receivables

Inventory and Cost of Goods Sold

Plant Assets and Intangibles

Liabilities

Stockholders Equity

Long-Term Investments and International Operations

The Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters