Question 1

A business repays the amount borrowed on a note payable. Which account is credited?

Accepted Answer

A) Cash 
B) Equipment 
C) Notes payable 
D) Notes receivable 
A) Cash 
B) Equipment 
C) Notes payable 
D) Notes receivable

Question 2

A business makes a cash payment to a supplier "on account" (for supplies which were purchased earlier.)Which account is credited?

Accepted Answer

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

Question 3

Accountants first record transactions in the:

Accepted Answer

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

Question 4

Which of the following is NOT an example of a source document?

Accepted Answer

A) Journal 
B) Sales invoice 
C) Bank deposit slip 
D) Purchase invoice 
A) Journal 
B) Sales invoice 
C) Bank deposit slip 
D) Purchase invoice

Question 5

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

Accepted Answer

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

Question 6

Which of the following accounts is an asset?

Accepted Answer

A) Salary expense 
B) Accounts payable 
C) Service revenue 
D) Prepaid expenses 
A) Salary expense 
B) Accounts payable 
C) Service revenue 
D) Prepaid expenses

Question 7

A business purchased $200 of supplies on account and recorded the following journal entry:   Which of the following sets of ledger accounts reflect the posting of this transaction?

Accepted Answer

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

Question 8

Which of the following are accrued liabilities?

Accepted Answer

A) Taxes payable 
B) Interest payable 
C) Salary payable 
D) All of the above 
A) Taxes payable 
B) Interest payable 
C) Salary payable 
D) All of the above

Question 9

A business is started by receiving $5,000 cash from the owner. Please provide the journal entry (debits first, credits second.)

Accepted Answer

The answer of A business is started by receiving $5,000...

Question 10

Which of the following accounts decreases with a credit?

Accepted Answer

A) Cash 
B) Capital 
C) Accounts payable 
D) Notes Payable 
A) Cash 
B) Capital 
C) Accounts payable 
D) Notes Payable

Question 11

Which of the following accounts is a liability?

Accepted Answer

A) Accounts payable 
B) Prepaid expenses 
C) Salary expense 
D) Service revenue 
A) Accounts payable 
B) Prepaid expenses 
C) Salary expense 
D) Service revenue

Question 12

The following transactions have been journalized and posted to the proper accounts. 1. Mark Call invested $7,000 cash in his new design services business.
2. The business paid the first month's rent with $700 cash.
3. The business purchased equipment by paying $2,000 down and executing a note payable for $4,500.
4. The business purchased supplies for $850 cash.
5. The business billed its clients a total of $4,000 for design services rendered.
6. The business collected $3,000 on account from one of its clients.
What is the balance in Accounts receivable?

Accepted Answer

A) $8,500 
B) $1,000 
C) $7,000 
D) $4,000 
A) $8,500 
B) $1,000 
C) $7,000 
D) $4,000

Question 13

A business borrows cash by signing a note payable. Which account is debited?

Accepted Answer

A) Notes payable 
B) Accounts payable 
C) Accounts receivable 
D) Cash 
A) Notes payable 
B) Accounts payable 
C) Accounts receivable 
D) Cash

Question 14

An asset account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 15

A chart of accounts is the book holding all of the company's accounts.

Accepted Answer

A) True 
 B)False

Question 16

The following are the ending month's balances for Toys Galore.   What is the net income for Toys Galore for September?

Accepted Answer

A) $8,680 
B) $1,050 
C) $7,630 
D) $970 
A) $8,680 
B) $1,050 
C) $7,630 
D) $970

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

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

Question 19

A business renders services to its customer and collects $900 cash. Please provide the journal entry (debits first, credits second.)

Accepted Answer

The answer of A business renders services to its customer...

Question 20

The following transactions have been journalized and posted to the proper accounts. 1. Mark Call invested $7,000 cash in his new design services business.
2. The business paid the first month's rent of $700.
  4. The business purchased supplies for $850 cash.
5. The business billed a client for $4,000 of design services completed.
6. The business received $3,000 of the account for the completed services.
What is the balance in Cash?

Accepted Answer

A) $7,850 
B) $6,450 
C) $8,450 
D) $8,150 
A) $7,850 
B) $6,450 
C) $8,450 
D) $8,150

Exam 2: Recording Business Transactions

A business repays the amount borrowed on a note payable. Which account is credited?

A business makes a cash payment to a supplier "on account" (for supplies which were purchased earlier.)Which account is credited?

Accountants first record transactions in the:

Which of the following is NOT an example of a source document?

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

Which of the following accounts is an asset?

A business purchased $200 of supplies on account and recorded the following journal entry: Which of the following sets of ledger accounts reflect the posting of this transaction?

Which of the following are accrued liabilities?

A business is started by receiving $5,000 cash from the owner. Please provide the journal entry (debits first, credits second.)

Which of the following accounts decreases with a credit?

Which of the following accounts is a liability?

A business borrows cash by signing a note payable. Which account is debited?

An asset account is increased by a debit.

A chart of accounts is the book holding all of the company's accounts.

The following are the ending month's balances for Toys Galore. What is the net income for Toys Galore for September?

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

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

A business renders services to its customer and collects $900 cash. Please provide the journal entry (debits first, credits second.)

Accounting and the Business Environment

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandising Inventory

Internal Control and Cash

Receivables

Plant Assets and Intangibles

Current Liabilities and Payroll

Long-Term Liabilities, Bonds Payable, and Classification of Liabilities on the Balance Sheet

Corporations: Paid-In Capital and the Balance Sheet

Corporations: Effects on Retained Earnings and the Income Statement

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Management Accounting

Job Order and Process Costing

Activity-Based Costing and Other Cost Management Tools

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

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