Question 1

Only the ________ accounts from the trial balance will be used to prepare the Income Statement.

Accepted Answer

A) asset and liabilities 
B) liabilities and Retained Earnings 
C) revenue and expense 
D) Stockholders' Equity and asset 
A) asset and liabilities 
B) liabilities and Retained Earnings 
C) revenue and expense 
D) Stockholders' Equity and asset C

Question 2

Revenues and expenses are listed in different columns on the trail balance.

Accepted Answer

A) True 
 B)False  True

Question 3

On the trial balance, which account balances should be listed in the debit column?

Accepted Answer

A) Assets, Revenues, and Dividends 
B) Liabilities, Revenues, and Common Stock 
C) Assets, Dividends, and Expenses 
D) Liabilities, Revenues, and Dividends 
A) Assets, Revenues, and Dividends 
B) Liabilities, Revenues, and Common Stock 
C) Assets, Dividends, and Expenses 
D) Liabilities, Revenues, and Dividends C

Question 4

A T-account has a $1,250 credit balance. This account is most likely:

Accepted Answer

A) an expense. 
B) a dividend account. 
C) an asset. 
D) a stock account. 
A) an expense. 
B) a dividend account. 
C) an asset. 
D) a stock account.

Question 5

How does an account receivable differ from a note receivable?

Accepted Answer

A) A note receivable is an asset while an account receivable is not. 
B) An account receivable is a written pledge while a note receivable is not. 
C) An account receivable is always an amount due from the company's customers while a note receivable is always an amount due from a bank. 
D) Notes receivable are written pledges while Accounts Receivable are not. 
A) A note receivable is an asset while an account receivable is not. 
B) An account receivable is a written pledge while a note receivable is not. 
C) An account receivable is always an amount due from the company's customers while a note receivable is always an amount due from a bank. 
D) Notes receivable are written pledges while Accounts Receivable are not.

Question 6

Given the following T-Account information, what is the balance of the supplies account? Supplies 132

Accepted Answer

A) $475 debit balance 
B) $475 credit balance 
C) $670 debit balance 
D) $195 credit balance 
A) $475 debit balance 
B) $475 credit balance 
C) $670 debit balance 
D) $195 credit balance

Question 7

The general ledger is arranged in the:

Accepted Answer

A) numerical order of the chart of accounts. 
B) alphabetical order of the account names. 
C) order with normal debit balance accounts first. 
D) order with normal credit balance accounts first. 
A) numerical order of the chart of accounts. 
B) alphabetical order of the account names. 
C) order with normal debit balance accounts first. 
D) order with normal credit balance accounts first.

Question 8

The fourth step in analyzing a transaction is to determine:

Accepted Answer

A) if the account balance will increase or decrease. 
B) the accounts that are involved. 
C) the type of accounts that are involved. 
D) which accounts are to be debited and credited. 
A) if the account balance will increase or decrease. 
B) the accounts that are involved. 
C) the type of accounts that are involved. 
D) which accounts are to be debited and credited.

Question 9

The Assets section would include prepaid expense accounts.

Accepted Answer

A) True 
 B)False

Question 10

The posting reference column of the general ledger shows the sources of the transferred information.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would start with a 2 in the chart of accounts?

Accepted Answer

A) Accounts Payable and Interest Payable 
B) Common Stock and Dividends 
C) Cash and Accounts Receivable 
D) Sales and Service Revenue 
A) Accounts Payable and Interest Payable 
B) Common Stock and Dividends 
C) Cash and Accounts Receivable 
D) Sales and Service Revenue

Question 12

Where is the best place for a company's accountant to find the information necessary to review the activity in the cash account?

Accepted Answer

A) General journal 
B) General ledger 
C) Trial balance 
D) Bank statement 
A) General journal 
B) General ledger 
C) Trial balance 
D) Bank statement

Question 13

A T-account has which of the following three major parts?

Accepted Answer

A) A debit side, a credit side, and a balance 
B) A debit side, a credit side, and a total column 
C) A title, a current date, and a balance 
D) A title, a debit side, and a credit side 
A) A debit side, a credit side, and a balance 
B) A debit side, a credit side, and a total column 
C) A title, a current date, and a balance 
D) A title, a debit side, and a credit side

Question 14

The sequence of steps used to record and report business transactions is referred to as:

Accepted Answer

A) transaction analysis. 
B) the accounting cycle. 
C) journalizing. 
D) the accounting period. 
A) transaction analysis. 
B) the accounting cycle. 
C) journalizing. 
D) the accounting period.

Question 15

Coyote Co. paid $8,000 rent in advance. The journal entry would require:

Accepted Answer

A) debit to Cash, credit to Rent Expense. 
B) debit to Cash, credit to Prepaid Rent. 
C) debit to Rent Expense, credit to Cash. 
D) debit to Prepaid Rent, credit to Cash. 
A) debit to Cash, credit to Rent Expense. 
B) debit to Cash, credit to Prepaid Rent. 
C) debit to Rent Expense, credit to Cash. 
D) debit to Prepaid Rent, credit to Cash.

Question 16

A T-account has a $789 debit balance. This account is most likely NOT:

Accepted Answer

A) Common Stock. 
B) Land. 
C) Advertising Expense. 
D) Dividends. 
A) Common Stock. 
B) Land. 
C) Advertising Expense. 
D) Dividends.

Question 17

Which of the following is TRUE regarding the accounts supplies payable and supplies expense?

Accepted Answer

A) These account titles both mean the same thing and are used interchangeably. 
B) Supplies payable represents the cost of supplies bought on account but not yet paid for, while supplies expense represents the cost of the supplies which have been paid for. 
C) Supplies payable represents the cost of supplies bought on account but not yet paid for, while supplies expense represents the cost of supplies used to deliver goods or services to customers. 
D) Supplies expense represents the cost of supplies bought on account but not yet paid for, while supplies payable represents the cost of supplies used to deliver goods or services to customers. 
A) These account titles both mean the same thing and are used interchangeably. 
B) Supplies payable represents the cost of supplies bought on account but not yet paid for, while supplies expense represents the cost of the supplies which have been paid for. 
C) Supplies payable represents the cost of supplies bought on account but not yet paid for, while supplies expense represents the cost of supplies used to deliver goods or services to customers. 
D) Supplies expense represents the cost of supplies bought on account but not yet paid for, while supplies payable represents the cost of supplies used to deliver goods or services to customers.

Question 18

Dividends, revenues, and Expenses all:

Accepted Answer

A) start with the same chart of account number. 
B) start with different chart of accounts numbers. 
C) appear in the chart of accounts under assets. 
D) appear in the chart of accounts under liabilities. 
A) start with the same chart of account number. 
B) start with different chart of accounts numbers. 
C) appear in the chart of accounts under assets. 
D) appear in the chart of accounts under liabilities.

Question 19

The account used to record payment of a telephone bill immediately after receiving it, would be a(n):

Accepted Answer

A) asset. 
B) liability. 
C) revenue. 
D) expense. 
A) asset. 
B) liability. 
C) revenue. 
D) expense.

Question 20

The fourth step in recording a transaction in the general journal is to record the:

Accepted Answer

A) explanation of the entry. 
B) account(s)to be credited and the amount(s). 
C) date of the entry. 
D) account(s)to be debited and the amount(s). 
A) explanation of the entry. 
B) account(s)to be credited and the amount(s). 
C) date of the entry. 
D) account(s)to be debited and the amount(s).

Only the ________ accounts from the trial balance will be used to prepare the Income Statement.

Revenues and expenses are listed in different columns on the trail balance.

On the trial balance, which account balances should be listed in the debit column?

A T-account has a $1,250 credit balance. This account is most likely:

How does an account receivable differ from a note receivable?

Given the following T-Account information, what is the balance of the supplies account? Supplies 132

The general ledger is arranged in the:

The fourth step in analyzing a transaction is to determine:

The Assets section would include prepaid expense accounts.

The posting reference column of the general ledger shows the sources of the transferred information.

Which of the following would start with a 2 in the chart of accounts?

Where is the best place for a company's accountant to find the information necessary to review the activity in the cash account?

A T-account has which of the following three major parts?

The sequence of steps used to record and report business transactions is referred to as:

Coyote Co. paid $8,000 rent in advance. The journal entry would require:

A T-account has a $789 debit balance. This account is most likely NOT:

Which of the following is TRUE regarding the accounts supplies payable and supplies expense?

Dividends, revenues, and Expenses all:

The account used to record payment of a telephone bill immediately after receiving it, would be a(n):

The fourth step in recording a transaction in the general journal is to record the:

Business, Accounting, and You

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Analyzing and Recording Business Transactions

Only the ________ accounts from the trial balance will be used to prepare the Income Statement.

Revenues and expenses are listed in different columns on the trail balance.

On the trial balance, which account balances should be listed in the debit column?

A T-account has a $1,250 credit balance. This account is most likely:

How does an account receivable differ from a note receivable?

Given the following T-Account information, what is the balance of the supplies account? Supplies 132

The general ledger is arranged in the:

The fourth step in analyzing a transaction is to determine:

The Assets section would include prepaid expense accounts.

The posting reference column of the general ledger shows the sources of the transferred information.

Which of the following would start with a 2 in the chart of accounts?

Where is the best place for a company's accountant to find the information necessary to review the activity in the cash account?

A T-account has which of the following three major parts?

The sequence of steps used to record and report business transactions is referred to as:

Coyote Co. paid $8,000 rent in advance. The journal entry would require:

A T-account has a $789 debit balance. This account is most likely NOT:

Which of the following is TRUE regarding the accounts supplies payable and supplies expense?

Dividends, revenues, and Expenses all:

The account used to record payment of a telephone bill immediately after receiving it, would be a(n):

The fourth step in recording a transaction in the general journal is to record the:

Business, Accounting, and You

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters