Question 1

For Supplies,the category of account and its normal balance are:

Accepted Answer

A) Owners' equity and a credit balance. 
B) Assets and a credit balance. 
C) Liabilities and a credit balance. 
D) Assets and a debit balance. 
A) Owners' equity and a credit balance. 
B) Assets and a credit balance. 
C) Liabilities and a credit balance. 
D) Assets and a debit balance. D

Question 2

Which of the following accounts increases with a credit?

Accepted Answer

A) Accounts receivable 
B) Cash 
C) Capital 
D) Prepaid expenses 
A) Accounts receivable 
B) Cash 
C) Capital 
D) Prepaid expenses C

Question 3

The following transactions for the month of March have been journalised and posted to the proper accounts.

Mar 1 Martinez invested $10,000 cash in his new design services business.
Mar 2 Paid the first month's rent of $500.
Mar 3 Purchased equipment by paying $1000 cash and executing a loan payable for $5000.
Mar 4 Purchased office supplies for $750 cash.
Mar 5 Billed a client for $11,000 of design services completed.
Mar 6 Received $7000 on account for the services previously recorded.
What is the ending balance in the Service revenue account?

Accepted Answer

A) $17,000 
B) $10,000 
C) $7000 
D) $11,000 
A) $17,000 
B) $10,000 
C) $7000 
D) $11,000 D

Question 4

A business has the following transactions: The business is started by receiving $20 000 from the owner.The business purchases $500 in supplies on credit.The business purchases $2 000 in furniture on credit.The business renders services to various clients totalling $9 000 on credit.The business pays out $2 000 for Salary expense and $3 000 for Rent expense.The business pays $500 to a supplier for the supplies purchased earlier.The business collects $1 500 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.The Cash account will appear as follows:

Accepted Answer

A) 
$$\begin{array} { c | r r } 
 { \text { Cash } } \\hline
& & \
& & 500 \
& & 2000 \500 \
\hline& &\mathrm{Bal} \quad 2000
\end{array}$$ 
B) 
$$\begin{array} { r r | r } 
 { \text { Cash } } \
\hline & 20000 & \
&2000 & \
&3000 & \
& 500 & \
& & 1500 \
\hline \text { Bal } \quad 24000 &
\end{array}$$ 
C) 
$$\begin{array} { r | r r } 
 { \text { Cash } } \
\hline &&20,000\
2000 & & \
3000 & & \
500 & & \
& & 15000 \
\hline & \text { Bal } & 16000
\end{array}$$ 
D) 
$$\begin{array}{l}
\text { Cash }\
\begin{array} { l r | r } 
\hline & 20000 \&& 2000 \
& & 3000 \
& & 500 \
& 1500 & \
\hline \text { Bal } & 16000 &
\end{array}
\end{array}$$ 
A) 
$$\begin{array} { c | r r } 
 { \text { Cash } } \\hline
& & \
& & 500 \
& & 2000 \500 \
\hline& &\mathrm{Bal} \quad 2000
\end{array}$$ 
B) 
$$\begin{array} { r r | r } 
 { \text { Cash } } \
\hline & 20000 & \
&2000 & \
&3000 & \
& 500 & \
& & 1500 \
\hline \text { Bal } \quad 24000 &
\end{array}$$ 
C) 
$$\begin{array} { r | r r } 
 { \text { Cash } } \
\hline &&20,000\
2000 & & \
3000 & & \
500 & & \
& & 15000 \
\hline & \text { Bal } & 16000
\end{array}$$ 
D) 
$$\begin{array}{l}
\text { Cash }\
\begin{array} { l r | r } 
\hline & 20000 \&& 2000 \
& & 3000 \
& & 500 \
& 1500 & \
\hline \text { Bal } & 16000 &
\end{array}
\end{array}$$

Question 5

A company received $75 000 from a customer 'on account'.The journal entry would be to:

Accepted Answer

A) debit Accounts receivable and credit Sales revenue. 
B) debit Sales revenue and credit Accounts receivable. 
C) debit Cash and credit Accounts receivable. 
D) debit Accounts receivable and credit Cash. 
A) debit Accounts receivable and credit Sales revenue. 
B) debit Sales revenue and credit Accounts receivable. 
C) debit Cash and credit Accounts receivable. 
D) debit Accounts receivable and credit Cash.

Question 6

A business purchased $200 of supplies on credit and recorded the following journal entry: $$\begin{array} { | l | r | r | } 
\hline \text { Supplies } & 200 & \
\hline \text { Accounts payable } & & 200 \
\hline
\end{array}$$ Which of the following sets of ledger accounts reflects the posting of this transaction?

Accepted Answer

A) 
$\begin{array}{c|c}
{\text { Supplies }} \
\hline  &200&
\end{array}\quad\quad$$\begin{array}{r|}
\text { Accounts payable } &\
\hline &200
\end{array}$ 
B) 
$\begin{array}{c}
\text { Supplies } \
\hline 200 \mid
\end{array}$ $\begin{array}{c}
\text { Accounts payable } \
\hline  \quad \mid 200
\end{array}$ 
C) 
$\begin{array}{c|c}
{\text { Supplies }} \
\hline  200&
\end{array}\quad\quad$$\begin{array}{r|}
\text { Accounts payable } &\
\hline 200
\end{array}$ 
D) 
$\begin{array}{c|c}
{\text { Supplies }} \
\hline & 200
\end{array}\quad\quad$$\begin{array}{r|}
\text { Accounts payable } &\
\hline 200
\end{array}$ 
A) 
$\begin{array}{c|c}
{\text { Supplies }} \
\hline  &200&
\end{array}\quad\quad$$\begin{array}{r|}
\text { Accounts payable } &\
\hline &200
\end{array}$ 
B) 
$\begin{array}{c}
\text { Supplies } \
\hline 200 \mid
\end{array}$ $\begin{array}{c}
\text { Accounts payable } \
\hline  \quad \mid 200
\end{array}$ 
C) 
$\begin{array}{c|c}
{\text { Supplies }} \
\hline  200&
\end{array}\quad\quad$$\begin{array}{r|}
\text { Accounts payable } &\
\hline 200
\end{array}$ 
D) 
$\begin{array}{c|c}
{\text { Supplies }} \
\hline & 200
\end{array}\quad\quad$$\begin{array}{r|}
\text { Accounts payable } &\
\hline 200
\end{array}$

Question 7

Which of the following journal entries would be recorded if a business purchased equipment for $3 000 cash?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 3000 & \
\hline \text { Accounts payable } & & 3000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 3000 & \
\hline \text { Equipment } & & 3000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Equipment } & 3000 & \
\hline \text { Accounts payable } & & 3000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Equipment } & 3000 & \
\hline \text { Cash } & & 3000 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 3000 & \
\hline \text { Accounts payable } & & 3000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 3000 & \
\hline \text { Equipment } & & 3000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Equipment } & 3000 & \
\hline \text { Accounts payable } & & 3000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Equipment } & 3000 & \
\hline \text { Cash } & & 3000 \
\hline
\end{array}$$

Question 8

A journal entry for a $240 payment to purchase office supplies was erroneously recorded as a debit to Office supplies for $600 and a credit to Cash for $240.Which of the following statements correctly states the effect of the error on the trial balance?

Accepted Answer

A) The sum of the debits will exceed the sum of the credits by $240. 
B) The sum of the debits will exceed the sum of the credits by $360. 
C) The sum of the credits will exceed the sum of the debits by $360. 
D) The sum of the debits will exceed the sum of the credits by $600. 
A) The sum of the debits will exceed the sum of the credits by $240. 
B) The sum of the debits will exceed the sum of the credits by $360. 
C) The sum of the credits will exceed the sum of the debits by $360. 
D) The sum of the debits will exceed the sum of the credits by $600.

Question 9

When a business makes a cash payment,the Cash account is always debited.

Accepted Answer

A) True 
 B)False

Question 10

A business pays cash back to the owner.Which account is debited?

Accepted Answer

A) Service revenue 
B) Cash 
C) Drawings 
D) Accounts payable 
A) Service revenue 
B) Cash 
C) Drawings 
D) Accounts payable

Question 11

A listing of all account titles in numerical order is a(n):

Accepted Answer

A) ledger. 
B) journal. 
C) chart of accounts. 
D) income statement. 
A) ledger. 
B) journal. 
C) chart of accounts. 
D) income statement.

Question 12

A business makes a cash payment of $12 000 to an account payable.Which account is credited?

Accepted Answer

A) Service revenue 
B) Accounts receivable 
C) Accounts payable 
D) Cash 
A) Service revenue 
B) Accounts receivable 
C) Accounts payable 
D) Cash

Question 13

Which of the following accounts decreases with a credit?

Accepted Answer

A) Cash 
B) Bills payable 
C) Accounts payable 
D) Capital 
A) Cash 
B) Bills payable 
C) Accounts payable 
D) Capital

Question 14

In a trial balance,total debits are always equal to total credits.

Accepted Answer

A) True 
 B)False

Question 15

For Accounts payable,the category of account and its normal balance are:

Accepted Answer

A) Assets and a credit balance. 
B) Liabilities and a credit balance. 
C) Owners' equity and a credit balance. 
D) Assets and a debit balance. 
A) Assets and a credit balance. 
B) Liabilities and a credit balance. 
C) Owners' equity and a credit balance. 
D) Assets and a debit balance.

Question 16

Which of the following accounts is NOT an example of a liability?

Accepted Answer

A) Accounts receivable 
B) Bills payable 
C) Accounts payable 
D) Wages payable 
A) Accounts receivable 
B) Bills payable 
C) Accounts payable 
D) Wages payable

Question 17

Which of the following accounts is an example of a liability?

Accepted Answer

A) Bills payable 
B) Service revenue 
C) Accounts receivable 
D) Building 
A) Bills payable 
B) Service revenue 
C) Accounts receivable 
D) Building

Question 18

Beetles Ltd recorded the following journal entry on 2 March 2016: $$\begin{array} { | l | l | l | } 
\hline \text { Cash } & 6000 & \
\hline \text { Unearned revenue } & & 5000 \
\hline
\end{array}$$ From the journal entry above,identify the transaction on 2 March 2016.

Accepted Answer

A) Beetles sold goods for $6000 cash. 
B) Beetles received $6000 for services to be performed in a later period. 
C) Beetles purchased goods worth $6000 and signed a one-year bill for the same. 
D) Beetles paid $6000 for services to be received at a later date. 
A) Beetles sold goods for $6000 cash. 
B) Beetles received $6000 for services to be performed in a later period. 
C) Beetles purchased goods worth $6000 and signed a one-year bill for the same. 
D) Beetles paid $6000 for services to be received at a later date.

Question 19

For Drawings,the category of account and its normal balance are:

Accepted Answer

A) Owners' equity and a credit balance. 
B) Liabilities and a credit balance. 
C) Assets and a credit balance. 
D) Owners' equity and a debit balance. 
A) Owners' equity and a credit balance. 
B) Liabilities and a credit balance. 
C) Assets and a credit balance. 
D) Owners' equity and a debit balance.

Question 20

After initially recording a transaction,the data is then copied or posted to the:

Accepted Answer

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

For Supplies,the category of account and its normal balance are:

Which of the following accounts increases with a credit?

A company received $75 000 from a customer 'on account'.The journal entry would be to:

A business purchased $200 of supplies on credit and recorded the following journal entry: Supplies 200 Accounts payable 200 Which of the following sets of ledger accounts reflects the posting of this transaction?

Which of the following journal entries would be recorded if a business purchased equipment for $3 000 cash?

A journal entry for a $240 payment to purchase office supplies was erroneously recorded as a debit to Office supplies for $600 and a credit to Cash for $240.Which of the following statements correctly states the effect of the error on the trial balance?

When a business makes a cash payment,the Cash account is always debited.

A business pays cash back to the owner.Which account is debited?

A listing of all account titles in numerical order is a(n):

A business makes a cash payment of $12 000 to an account payable.Which account is credited?

Which of the following accounts decreases with a credit?

In a trial balance,total debits are always equal to total credits.

For Accounts payable,the category of account and its normal balance are:

Which of the following accounts is NOT an example of a liability?

Which of the following accounts is an example of a liability?

Beetles Ltd recorded the following journal entry on 2 March 2016: Cash 6000 Unearned revenue 5000 From the journal entry above,identify the transaction on 2 March 2016.

For Drawings,the category of account and its normal balance are:

After initially recording a transaction,the data is then copied or posted to the:

The Role of Accounting in Decision Making

The Adjusting Process

Completing the Accounting Cycle

Retailing Operations

Retail Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Non-Current Assets: Property, Plant and Equipment, and Intangibles

Current Liabilities and Payroll

Non-Current Liabilities, Debentures Payable and Classification of Liabilities on the Balance Sheet

Partnerships

Companies: Formation and Shareholders Equity

Companies: Capital Management and the Income Statement

The Cash Flow Statement

The Framework of Accounting

Financial Statement Analysis

Filters

Exam 2: Recording Business Transactions

For Supplies,the category of account and its normal balance are:

Which of the following accounts increases with a credit?

A company received $75 000 from a customer 'on account'.The journal entry would be to:

A business purchased $200 of supplies on credit and recorded the following journal entry: Supplies 200 Accounts payable 200 Which of the following sets of ledger accounts reflects the posting of this transaction?

Which of the following journal entries would be recorded if a business purchased equipment for $3 000 cash?

A journal entry for a $240 payment to purchase office supplies was erroneously recorded as a debit to Office supplies for $600 and a credit to Cash for $240.Which of the following statements correctly states the effect of the error on the trial balance?

When a business makes a cash payment,the Cash account is always debited.

A business pays cash back to the owner.Which account is debited?

A listing of all account titles in numerical order is a(n):

A business makes a cash payment of $12 000 to an account payable.Which account is credited?

Which of the following accounts decreases with a credit?

In a trial balance,total debits are always equal to total credits.

For Accounts payable,the category of account and its normal balance are:

Which of the following accounts is NOT an example of a liability?

Which of the following accounts is an example of a liability?

Beetles Ltd recorded the following journal entry on 2 March 2016: Cash 6000 Unearned revenue 5000 From the journal entry above,identify the transaction on 2 March 2016.

For Drawings,the category of account and its normal balance are:

After initially recording a transaction,the data is then copied or posted to the:

The Role of Accounting in Decision Making

The Adjusting Process

Completing the Accounting Cycle

Retailing Operations

Retail Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Non-Current Assets: Property, Plant and Equipment, and Intangibles

Current Liabilities and Payroll

Non-Current Liabilities, Debentures Payable and Classification of Liabilities on the Balance Sheet

Partnerships

Companies: Formation and Shareholders Equity

Companies: Capital Management and the Income Statement

The Cash Flow Statement

The Framework of Accounting

Financial Statement Analysis

Filters