Question 1

A posting reference column is added:

Accepted Answer

A) while preparing the trial balance using the ledger. 
B) when the information is transferred from the journal to the ledger. 
C) when the information is transferred from the ledger to the journal. 
D) while preparing the balance sheet using the trial balance. 
A) while preparing the trial balance using the ledger. 
B) when the information is transferred from the journal to the ledger. 
C) when the information is transferred from the ledger to the journal. 
D) while preparing the balance sheet using the trial balance.

Question 2

Sharon Company reported the following transactions for September, 2015.

Accepted Answer

A) Sharon started the business with a capital contribution of $25,000 cash. It was credited to Sharon, Capital. 
B) The business purchased office equipment for $11,500 for which $2,500 cash was paid and the balance was put on a note payable. 
C) Paid insurance expense of $1,800 cash. 
D) Paid a utility bill for $900 cash. 
E) Paid $2,000 cash for September rent.
F)The business had sales of $12,000 in September. Of these sales, 60% were cash sales, and the balance was credit sales.
G)The business paid $8,000 cash for office furniture. 
A) Sharon started the business with a capital contribution of $25,000 cash. It was credited to Sharon, Capital. 
B) The business purchased office equipment for $11,500 for which $2,500 cash was paid and the balance was put on a note payable. 
C) Paid insurance expense of $1,800 cash. 
D) Paid a utility bill for $900 cash. 
E) Paid $2,000 cash for September rent.
F)The business had sales of $12,000 in September. Of these sales, 60% were cash sales, and the balance was credit sales.
G)The business paid $8,000 cash for office furniture.

Question 3

A trial balance is the list of only a company's debit accounts along with their account numbers.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Which of the following journal entries would be recorded if a business renders service and receives cash of $900 from the customer?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 6

Which of the following is an asset account?

Accepted Answer

A) Wages Payable 
B) Notes Payable 
C) Unearned Revenue 
D) Accounts Receivable 
A) Wages Payable 
B) Notes Payable 
C) Unearned Revenue 
D) Accounts Receivable

Question 7

The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 Martinez invested $9,000 cash in his new design services business.
Mar. 2 Paid the first month's rent of $800.
Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $5,000.
Mar. 4 Purchased Office Supplies for $750 cash.
Mar. 5 Billed a client for $10,000 of design services completed.
Mar. 6 Received $8,000 on account for the services previously recorded.
What is the balance in Accounts Receivable?

Accepted Answer

A) $8,000 
B) $2,000 
C) $5,000 
D) $10,000 
A) $8,000 
B) $2,000 
C) $5,000 
D) $10,000

Question 8

Journalizing a transaction involves:

Accepted Answer

A) calculating the balance in an account using journal entries. 
B) posting the account balances in the chart of accounts. 
C) preparing a summary of account balances. 
D) recording the data only in the journal. 
A) calculating the balance in an account using journal entries. 
B) posting the account balances in the chart of accounts. 
C) preparing a summary of account balances. 
D) recording the data only in the journal.

Question 9

The trial balance is also known as the balance sheet.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following accounts increases with a debit?

Accepted Answer

A) Cash 
B) Interest Payable 
C) Accounts Payable 
D) Smith, Capital 
A) Cash 
B) Interest Payable 
C) Accounts Payable 
D) Smith, Capital

Question 11

A shortened form of an account in the ledger is called a:

Accepted Answer

A) trial balance. 
B) balance sheet. 
C) chart of accounts. 
D) T-account. 
A) trial balance. 
B) balance sheet. 
C) chart of accounts. 
D) T-account.

Question 12

A liability created when a business collects cash from customers in advance of providing services or delivering goods is called:

Accepted Answer

A) notes receivable. 
B) unearned revenues. 
C) capital. 
D) revenues. 
A) notes receivable. 
B) unearned revenues. 
C) capital. 
D) revenues.

Question 13

All asset accounts and equity accounts increase with a debit.

Accepted Answer

A) True 
 B)False

Question 14

A liability account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 15

The following are the current month's balances for Toys Galore:   Calculate the total amount of credits for the trial balance.

Accepted Answer

A) $24,500 
B) $22,750 
C) $24,750 
D) $32,750 
A) $24,500 
B) $22,750 
C) $24,750 
D) $32,750

Question 16

The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 Martinez invested $9,000 cash in his new design services business.
Mar. 2 Paid the first month's rent of $800.
Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $5,000.
Mar. 4 Purchased office supplies for $750 cash.
Mar. 5 Billed a client for $10,000 of design services completed.
Mar. 6 Received $8,000 on account for the services previously recorded.
What is the balance in Cash?

Accepted Answer

A) $13,250 
B) $12,450 
C) $15,450 
D) $14,000 
A) $13,250 
B) $12,450 
C) $15,450 
D) $14,000

Question 17

Debits in the journal are always posted as debits in the ledger.

Accepted Answer

A) True 
 B)False

Question 18

A business repays the amount borrowed on a note payable by cash. Which of the following accounts will be debited?

Accepted Answer

A) Cash 
B) Bank 
C) Notes Payable 
D) Notes Receivable 
A) Cash 
B) Bank 
C) Notes Payable 
D) Notes Receivable

Question 19

Which of the following groups of accounts normally have a debit balance?

Accepted Answer

A) assets and expenses 
B) revenues and expenses 
C) liabilities and owner's equity 
D) assets and liabilities 
A) assets and expenses 
B) revenues and expenses 
C) liabilities and owner's equity 
D) assets and liabilities

Question 20

A business buys $500 of Office Supplies on account. Which of the following accounts is debited?

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Office Supplies 
D) Utilities Expense 
A) Cash 
B) Accounts Payable 
C) Office Supplies 
D) Utilities Expense

Exam 2: Recording Business Transactions

A posting reference column is added:

Sharon Company reported the following transactions for September, 2015.

A trial balance is the list of only a company's debit accounts along with their account numbers.

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

Which of the following journal entries would be recorded if a business renders service and receives cash of $900 from the customer?

Which of the following is an asset account?

Journalizing a transaction involves:

The trial balance is also known as the balance sheet.

Which of the following accounts increases with a debit?

A shortened form of an account in the ledger is called a:

A liability created when a business collects cash from customers in advance of providing services or delivering goods is called:

All asset accounts and equity accounts increase with a debit.

A liability account is increased by a debit.

The following are the current month's balances for Toys Galore: Calculate the total amount of credits for the trial balance.

Debits in the journal are always posted as debits in the ledger.

A business repays the amount borrowed on a note payable by cash. Which of the following accounts will be debited?

Which of the following groups of accounts normally have a debit balance?

A business buys $500 of Office Supplies on account. Which of the following accounts is debited?

Accounting and the Business Environment

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

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