Question 1

Which of the following is the detailed record of the changes in a particular asset,liability or owners' equity?

Accepted Answer

A) Ledger 
B) Journal 
C) Trial balance 
D) Account 
A) Ledger 
B) Journal 
C) Trial balance 
D) Account

Question 2

A journal entry for a $70 payment for rent expense was posted as a debit to Salaries expense and a credit to Cash.This error will cause which of the following conditions on the trial balance?

Accepted Answer

A) The sum of the credits will equal the sum of the debits. 
B) The sum of the debits will exceed the sum of the credits by $140. 
C) The sum of the credits will exceed the sum of the debits by $140. 
D) The sum of the debits will exceed the sum of the credits by $70. 
A) The sum of the credits will equal the sum of the debits. 
B) The sum of the debits will exceed the sum of the credits by $140. 
C) The sum of the credits will exceed the sum of the debits by $140. 
D) The sum of the debits will exceed the sum of the credits by $70.

Question 3

The following are the current month's balances for Toys Galore: $$\begin{array} { | l | l | } 
\hline \text { Accounts payable } & \$ 10,000 \
\hline \text { Revenue } & 3000 \
\hline \text { Cash } & 3000 \
\hline \text { Expenses } & 1200 \
\hline \text { Furniture } & 11,000 \
\hline \text { Accounts receivable } & 15,000 \
\hline \text { Iones, capital } & 7250 \
\hline \text { Loan payable } & 5500 \
\hline
\end{array}$$ Calculate the total amount of credits for the trial balance.

Accepted Answer

A) $31,750 
B) $23,750 
C) $24,500 
D) $21,750 
A) $31,750 
B) $23,750 
C) $24,500 
D) $21,750

Question 4

The accounting process of copying a transaction from the journal to the ledger is called:

Accepted Answer

A) proofing. 
B) footing. 
C) posting. 
D) journalising. 
A) proofing. 
B) footing. 
C) posting. 
D) journalising.

Question 5

An account that normally has a debit balance may occasionally have a credit balance.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

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

Question 7

Which of the following accounts increases with a debit?

Accepted Answer

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

Question 8

Which of the following accounts decreases with a debit?

Accepted Answer

A) Prepaid insurance 
B) Bills payable 
C) Land 
D) Cash 
A) Prepaid insurance 
B) Bills payable 
C) Land 
D) Cash

Question 9

Which of the following accounts is NOT an example of an asset?

Accepted Answer

A) Building 
B) Cash 
C) Bills payable 
D) Accounts receivable 
A) Building 
B) Cash 
C) Bills payable 
D) Accounts receivable

Question 10

Which of the following statements is TRUE?

Accepted Answer

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

Question 11

The following are the current month's balances for Toys Galore: $$\begin{array} { | l | l | } 
\hline \text { Accounts payable } & \$ 9000 \
\hline \text { Revenue } & 12,000 \
\hline \text { Cash } & 3000 \
\hline \text { Expenses } & 1400 \
\hline \text { Furniture } & 14,000 \
\hline \text { Accounts receivable } & 13,000 \
\hline \text { Iones, capital } & 7250 \
\hline \text { Loan payable } & 4500 \
\hline
\end{array}$$ What is the profit for Toys Galore for the current month?

Accepted Answer

A) $13,400 
B) $10,600 
C) $15,000 
D) $12,000 
A) $13,400 
B) $10,600 
C) $15,000 
D) $12,000

Question 12

The normal sequence of information flow in an accounting system is:

Accepted Answer

A) source document,ledger,journal. 
B) journal,source document,ledger. 
C) source document,journal,ledger. 
D) ledger,journal,source document. 
A) source document,ledger,journal. 
B) journal,source document,ledger. 
C) source document,journal,ledger. 
D) ledger,journal,source document.

Question 13

When a business records revenue earned,the revenue account is always credited.

Accepted Answer

A) True 
 B)False

Question 14

A business purchases equipment by paying $9023 in cash and issuing a loan payable of $16,446.Which of the following occurs?

Accepted Answer

A) Cash is debited for $9023,equipment is credited for $16,446 and loan payable is debited for $7423. 
B) Cash is debited for $9023,equipment is debited for $16,446 and loan payable is credited for $25,469. 
C) Cash is credited for $9023,equipment is debited for $25,469 and loan payable is credited for $16,446. 
D) Cash is credited for $9023,equipment is credited for $25,469 and loan payable is debited for $16,446. 
A) Cash is debited for $9023,equipment is credited for $16,446 and loan payable is debited for $7423. 
B) Cash is debited for $9023,equipment is debited for $16,446 and loan payable is credited for $25,469. 
C) Cash is credited for $9023,equipment is debited for $25,469 and loan payable is credited for $16,446. 
D) Cash is credited for $9023,equipment is credited for $25,469 and loan payable is debited for $16,446.

Which of the following is the detailed record of the changes in a particular asset,liability or owners' equity?

A journal entry for a $70 payment for rent expense was posted as a debit to Salaries expense and a credit to Cash.This error will cause which of the following conditions on the trial balance?

The following are the current month's balances for Toys Galore: Accounts payable \ 10,000 Revenue 3000 Cash 3000 Expenses 1200 Furniture 11,000 Accounts receivable 15,000 Iones, capital 7250 Loan payable 5500 Calculate the total amount of credits for the trial balance.

The accounting process of copying a transaction from the journal to the ledger is called:

An account that normally has a debit balance may occasionally have a credit balance.

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

Which of the following accounts increases with a debit?

Which of the following accounts decreases with a debit?

Which of the following accounts is NOT an example of an asset?

Which of the following statements is TRUE?

The following are the current month's balances for Toys Galore: Accounts payable \ 9000 Revenue 12,000 Cash 3000 Expenses 1400 Furniture 14,000 Accounts receivable 13,000 Iones, capital 7250 Loan payable 4500 What is the profit for Toys Galore for the current month?

The normal sequence of information flow in an accounting system is:

When a business records revenue earned,the revenue account is always credited.

A business purchases equipment by paying $9023 in cash and issuing a loan payable of $16,446.Which of the following occurs?

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 is the detailed record of the changes in a particular asset,liability or owners' equity?

A journal entry for a $70 payment for rent expense was posted as a debit to Salaries expense and a credit to Cash.This error will cause which of the following conditions on the trial balance?

The following are the current month's balances for Toys Galore: Accounts payable \ 10,000 Revenue 3000 Cash 3000 Expenses 1200 Furniture 11,000 Accounts receivable 15,000 Iones, capital 7250 Loan payable 5500 Calculate the total amount of credits for the trial balance.

The accounting process of copying a transaction from the journal to the ledger is called:

An account that normally has a debit balance may occasionally have a credit balance.

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

Which of the following accounts increases with a debit?

Which of the following accounts decreases with a debit?

Which of the following accounts is NOT an example of an asset?

Which of the following statements is TRUE?

The following are the current month's balances for Toys Galore: Accounts payable \ 9000 Revenue 12,000 Cash 3000 Expenses 1400 Furniture 14,000 Accounts receivable 13,000 Iones, capital 7250 Loan payable 4500 What is the profit for Toys Galore for the current month?

The normal sequence of information flow in an accounting system is:

When a business records revenue earned,the revenue account is always credited.

A business purchases equipment by paying $9023 in cash and issuing a loan payable of $16,446.Which of the following occurs?

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