Question 1

Posting a transaction means:

Accepted Answer

A) calculating the balance in an account. 
B) transferring data from the journal to the ledger 
C) preparing a summary of account balances. 
D) finding the account number in the chart of accounts. 
A) calculating the balance in an account. 
B) transferring data from the journal to the ledger 
C) preparing a summary of account balances. 
D) finding the account number in the chart of accounts.

Question 2

A business purchases equipment for $8,000 cash. Which of the following accounts will be credited?

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Sandra, Capital 
D) Equipment 
A) Cash 
B) Accounts Payable 
C) Sandra, Capital 
D) Equipment

Question 3

A business has the following transactions: the business is started by receiving $20,000 from the owner. The business purchases $500 of office supplies on account. The business purchases $2,000 of furniture on account. The business renders services to various clients totaling $10,000 on account. The business pays out $2,000 for salaries expense and $3,000 for Rent Expense. Business pays $500 to supplier for the office supplies purchased earlier. The business collects $3,000 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 Accounts Receivable account will appear as:

Accepted Answer

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

Question 4

The trial balance verifies the equality of debits and credits.

Accepted Answer

A) True 
 B)False

Question 5

When is a trial balance usually prepared?

Accepted Answer

A) after each entry is journalized 
B) before the financial statements are prepared 
C) after the financial statements are prepared 
D) at the beginning of an accounting period 
A) after each entry is journalized 
B) before the financial statements are prepared 
C) after the financial statements are prepared 
D) at the beginning of an accounting period

Question 6

Carol Instruments sells musical instruments. On December 31, 2015, after its first month of business, Carol Instruments had the following balances in its accounts, listed alphabetically.   Determine the balance in the cash account and prepare the trial balance.

Accepted Answer

In the given problem, the Cash

Question 7

A debit always means a decrease and a credit means increase.

Accepted Answer

A) True 
 B)False

Question 8

A chart of accounts is a list of all of a company's accounts with their account numbers.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is true of the Owner's Capital account?

Accepted Answer

A) It is an equity account that has a normal credit balance. 
B) It is a liability account that has a normal credit balance. 
C) It is a liability account that has a normal debit balance. 
D) It is an equity account that has a normal debit balance. 
A) It is an equity account that has a normal credit balance. 
B) It is a liability account that has a normal credit balance. 
C) It is a liability account that has a normal debit balance. 
D) It is an equity account that has a normal debit balance.

Question 10

The Accounts Receivable account is a(n)________ account and carries a ________ normal balance.

Accepted Answer

A) liability; debit 
B) asset; debit 
C) liability; credit 
D) asset; credit 
A) liability; debit 
B) asset; debit 
C) liability; credit 
D) asset; credit

Question 11

Which of the following is the order of steps to journalize an entry?

Accepted Answer

A) Identify each account affected → Determine increase or decrease in each account → Record the transaction 
B) Identify each account affected → Record the transaction → Determine increase or decrease in each account 
C) Record the transaction → Identify each account affected → Determine increase or decrease in each account 
D) Determine increase or decrease in each account → Identify each account affected → Record the transaction 
A) Identify each account affected → Determine increase or decrease in each account → Record the transaction 
B) Identify each account affected → Record the transaction → Determine increase or decrease in each account 
C) Record the transaction → Identify each account affected → Determine increase or decrease in each account 
D) Determine increase or decrease in each account → Identify each account affected → Record the transaction

Question 12

The Owner's Capital account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 13

Beetles Inc. recorded the following journal entry on March 2, 2014:   From the journal entry above, identify the transaction on March 2, 2014.

Accepted Answer

A) Beetles purchased goods worth $5,000 and signed a one-year note for the same. 
B) Beetles sold goods for $5,000 cash. 
C) Beetles received $5,000 for services to be performed in a later period. 
D) Beetles paid $5,000 for services to be received at a later date. 
A) Beetles purchased goods worth $5,000 and signed a one-year note for the same. 
B) Beetles sold goods for $5,000 cash. 
C) Beetles received $5,000 for services to be performed in a later period. 
D) Beetles paid $5,000 for services to be received at a later date.

Question 14

The following transactions have been journalized and posted to the proper accounts. Prepare a trial balance using the following details:
a. Edward Wilson invested $15,000 cash in his new landscaping business.
b. Paid the first month's rent with $800 cash.
c. Purchased equipment by paying $4,000 cash and executing a note payable for $4,000.
d. Purchased office supplies for $200 cash.
e. Billed clients for a total of $7,000 for design services rendered.
f. Received $1,000 cash from clients for services rendered above.

Accepted Answer

The answer of The following transactions have been journalized and...

Question 15

Which type of account is Owner's Capital?

Accepted Answer

A) equity 
B) asset 
C) liability 
D) revenue 
A) equity 
B) asset 
C) liability 
D) revenue

Question 16

A business makes a payment of $1,400 on a note payable, consisting of a $200 interest payment and a $1,200 principal payment. Which of the following journal entries would be recorded?

Accepted Answer

A) Cash is credited for $1,200; Interest Expense is credited for $200; and Notes Payable is debited for $1,400. 
B) Notes Payable is credited for $1,200; Cash is credited for $200; and Interest Expense is debited for $1,400. 
C) Cash is credited for $1,400; Notes payable is debited for $1,200; and Interest Expense is debited for $200. 
D) Notes Payable is credited for $1,400; Cash is debited for $1,200; and Interest Expense is debited for $200. 
A) Cash is credited for $1,200; Interest Expense is credited for $200; and Notes Payable is debited for $1,400. 
B) Notes Payable is credited for $1,200; Cash is credited for $200; and Interest Expense is debited for $1,400. 
C) Cash is credited for $1,400; Notes payable is debited for $1,200; and Interest Expense is debited for $200. 
D) Notes Payable is credited for $1,400; Cash is debited for $1,200; and Interest Expense is debited for $200.

Posting a transaction means:

A business purchases equipment for $8,000 cash. Which of the following accounts will be credited?

The trial balance verifies the equality of debits and credits.

When is a trial balance usually prepared?

Carol Instruments sells musical instruments. On December 31, 2015, after its first month of business, Carol Instruments had the following balances in its accounts, listed alphabetically. Determine the balance in the cash account and prepare the trial balance.

A debit always means a decrease and a credit means increase.

A chart of accounts is a list of all of a company's accounts with their account numbers.

Which of the following statements is true of the Owner's Capital account?

The Accounts Receivable account is a(n) account and carries a normal balance.

Which of the following is the order of steps to journalize an entry?

The Owner's Capital account is increased by a debit.

Beetles Inc. recorded the following journal entry on March 2, 2014: From the journal entry above, identify the transaction on March 2, 2014.

Which type of account is Owner's Capital?

A business makes a payment of $1,400 on a note payable, consisting of a $200 interest payment and a $1,200 principal payment. Which of the following journal entries would be recorded?

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

Filters

Exam 2: Recording Business Transactions

Posting a transaction means:

A business purchases equipment for $8,000 cash. Which of the following accounts will be credited?

The trial balance verifies the equality of debits and credits.

When is a trial balance usually prepared?

Carol Instruments sells musical instruments. On December 31, 2015, after its first month of business, Carol Instruments had the following balances in its accounts, listed alphabetically. Determine the balance in the cash account and prepare the trial balance.

A debit always means a decrease and a credit means increase.

A chart of accounts is a list of all of a company's accounts with their account numbers.

Which of the following statements is true of the Owner's Capital account?

The Accounts Receivable account is a(n)________ account and carries a ________ normal balance.

Which of the following is the order of steps to journalize an entry?

The Owner's Capital account is increased by a debit.

Beetles Inc. recorded the following journal entry on March 2, 2014: From the journal entry above, identify the transaction on March 2, 2014.

Which type of account is Owner's Capital?

A business makes a payment of $1,400 on a note payable, consisting of a $200 interest payment and a $1,200 principal payment. Which of the following journal entries would be recorded?

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

Filters

The Accounts Receivable account is a(n) account and carries a normal balance.