Question 1

Which of the following statements about revenue is CORRECT?

Accepted Answer

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

Question 2

Which of the following journal entries would be recorded if a business renders services and receives cash of $400 from the customer?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 400 & \
\hline \text { Accounts payable } & & 400 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 400 & \
\hline \text { Accounts receivable } & & 400 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 400 & \
\hline \text { Cash } & & 400 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 400 & \
\hline \text { Service revenue } & & 400 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 400 & \
\hline \text { Accounts payable } & & 400 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 400 & \
\hline \text { Accounts receivable } & & 400 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 400 & \
\hline \text { Cash } & & 400 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 400 & \
\hline \text { Service revenue } & & 400 \
\hline
\end{array}$$

Question 3

A business collects cash from a customer in payment of accounts receivable.Which account is debited?

Accepted Answer

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

Question 4

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

Accepted Answer

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

Question 5

A business collects cash from a customer in payment of accounts receivable.Which account is credited?

Accepted Answer

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

Question 6

A business renders services to a customer for $16 000 on credit.Which account is credited?

Accepted Answer

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

Question 7

When a business collects cash,the Cash account is debited.

Accepted Answer

A) True 
 B)False

Question 8

The drawings account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 9

In a typical chart of accounts,what information is provided along with the account name?

Accepted Answer

A) Dates of transactions 
B) Account number 
C) Account balance 
D) Transaction amounts 
A) Dates of transactions 
B) Account number 
C) Account balance 
D) Transaction amounts

Question 10

The following are the ending month's balances for Toys Galore. $$\begin{array} { | r | r| } 
\hline \text { Accounts payable } & \$ 6790 \
\hline \text { Revenue } & 8680 \
\hline \text { Cash } & 4500 \
\hline \text { Expenses } & 1050 \
\hline \text { Furniture } & 8370 \
\hline \text { Accounts receivable } & 7710 \
\hline \text { Capital } & 930 \
\hline \text { Loan payable } & 5230 \
\hline
\end{array}$$ What would be the last account listed on the trial balance for Toys Galore?

Accepted Answer

A) Accounts payable 
B) Revenue 
C) Expenses 
D) Cash 
A) Accounts payable 
B) Revenue 
C) Expenses 
D) Cash

Question 11

A business renders services for $16 000 and collects cash from the customer.Which account is debited?

Accepted Answer

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

Question 12

A liability account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 13

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

Question 14

Which of the following accounts is an asset?

Accepted Answer

A) Expenses 
B) Drawings 
C) Bills payable 
D) Cash 
A) Expenses 
B) Drawings 
C) Bills payable 
D) Cash

Question 15

In a typical chart of accounts,liabilities appear before assets.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is the last step of journalising an entry?

Accepted Answer

A) Determine whether each account has increased or decreased. 
B) Identify each account affected and its type. 
C) Record the transaction in the journal,including a brief explanation. 
D) Post the accounts to the ledger. 
A) Determine whether each account has increased or decreased. 
B) Identify each account affected and its type. 
C) Record the transaction in the journal,including a brief explanation. 
D) Post the accounts to the ledger.

Question 17

A trial balance is a list of all of the accounts with their balances.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is FALSE?

Accepted Answer

A) A trial balance shows total debits and total credits. 
B) A trial balance is created before the balance sheet is prepared. 
C) A trial balance presents data in debit and credit format,but a balance sheet does not. 
D) A trial balance shows total amounts for assets,liabilities and equity. 
A) A trial balance shows total debits and total credits. 
B) A trial balance is created before the balance sheet is prepared. 
C) A trial balance presents data in debit and credit format,but a balance sheet does not. 
D) A trial balance shows total amounts for assets,liabilities and equity.

Question 19

Which of the following is NOT part of owners' equity?

Accepted Answer

A) Bills payable 
B) Capital 
C) Accounts receivable 
D) Both A and C 
A) Bills payable 
B) Capital 
C) Accounts receivable 
D) Both A and C

Question 20

Assets,Drawings and Expenses have a normal balance on the debit side.

Accepted Answer

A) True 
 B)False

Which of the following statements about revenue is CORRECT?

Which of the following journal entries would be recorded if a business renders services and receives cash of $400 from the customer?

A business collects cash from a customer in payment of accounts receivable.Which account is debited?

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

A business collects cash from a customer in payment of accounts receivable.Which account is credited?

A business renders services to a customer for $16 000 on credit.Which account is credited?

When a business collects cash,the Cash account is debited.

The drawings account is increased by a debit.

In a typical chart of accounts,what information is provided along with the account name?

The following are the ending month's balances for Toys Galore. Accounts payable \ 6790 Revenue 8680 Cash 4500 Expenses 1050 Furniture 8370 Accounts receivable 7710 Capital 930 Loan payable 5230 What would be the last account listed on the trial balance for Toys Galore?

A business renders services for $16 000 and collects cash from the customer.Which account is debited?

A liability account is increased by a debit.

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

Which of the following accounts is an asset?

In a typical chart of accounts,liabilities appear before assets.

Which of the following is the last step of journalising an entry?

A trial balance is a list of all of the accounts with their balances.

Which of the following statements is FALSE?

Which of the following is NOT part of owners' equity?

Assets,Drawings and Expenses have a normal balance on the debit side.

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

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Exam 2: Recording Business Transactions

Which of the following statements about revenue is CORRECT?

Which of the following journal entries would be recorded if a business renders services and receives cash of $400 from the customer?

A business collects cash from a customer in payment of accounts receivable.Which account is debited?

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

A business collects cash from a customer in payment of accounts receivable.Which account is credited?

A business renders services to a customer for $16 000 on credit.Which account is credited?

When a business collects cash,the Cash account is debited.

The drawings account is increased by a debit.

In a typical chart of accounts,what information is provided along with the account name?

The following are the ending month's balances for Toys Galore. Accounts payable \ 6790 Revenue 8680 Cash 4500 Expenses 1050 Furniture 8370 Accounts receivable 7710 Capital 930 Loan payable 5230 What would be the last account listed on the trial balance for Toys Galore?

A business renders services for $16 000 and collects cash from the customer.Which account is debited?

A liability account is increased by a debit.

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

Which of the following accounts is an asset?

In a typical chart of accounts,liabilities appear before assets.

Which of the following is the last step of journalising an entry?

A trial balance is a list of all of the accounts with their balances.

Which of the following statements is FALSE?

Which of the following is NOT part of owners' equity?

Assets,Drawings and Expenses have a normal balance on the debit side.

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