Question 1

A business pays salary expense of $4,000 in cash. Please provide the journal entry (debits first, credits second.)

Accepted Answer

The answer of A business pays salary expense of $4,000...

Question 2

Equipment is purchased for cash. Which of the following would be TRUE?

Accepted Answer

A) There is an increase in total assets. 
B) There is a decrease in both total assets and total liabilities. 
C) There is an increase in total assets and a decrease in total liabilities. 
D) There is no effect on total assets. 
A) There is an increase in total assets. 
B) There is a decrease in both total assets and total liabilities. 
C) There is an increase in total assets and a decrease in total liabilities. 
D) There is no effect on total assets.

Question 3

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

Accepted Answer

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

Question 4

At the end of the month, the business receives a bill for utility expenses of $800 incurred during the month. The business will pay the bill during the following month. Please provide the journal entry (debits first, credits second.)

Accepted Answer

The answer of At the end of the month, the...

Question 5

The trial balance is one of the three basic financial statements.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

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

Question 7

In the accounting system, the first place that transactions are recorded is the ledger.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

The first step of journalizing an entry is to:

Accepted Answer

A) post the accounts to the ledger. 
B) identify each account affected and its type. 
C) determine whether each account is increased or decreased. 
D) record the transaction in the journal, including a brief explanation. 
A) post the accounts to the ledger. 
B) identify each account affected and its type. 
C) determine whether each account is increased or decreased. 
D) record the transaction in the journal, including a brief explanation.

Question 10

The trial balance shows total amounts for assets, liabilities, and equity.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

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

Question 12

Which of the following accounts is an asset?

Accepted Answer

A) Cash 
B) Notes payable 
C) Drawing 
D) Expenses 
A) Cash 
B) Notes payable 
C) Drawing 
D) Expenses

Question 13

Which of the following statements about revenue is CORRECT?

Accepted Answer

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

Question 14

The following are the ending month's balances for Toys Galore.   What would be the first account listed on the trial balance for Toys Galore?

Accepted Answer

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

Question 15

The owner's capital account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 16

A business purchases land for $100,000 cash. Please provide the journal entry (debits first, credits second.)

Accepted Answer

The answer of A business purchases land for $100,000 cash....

Question 17

A trial balance lists accounts in which order?

Accepted Answer

A) Assets, Liabilities, Revenues, Expenses, Owner's equity 
B) Assets, Expenses, Liabilities, Revenues, Owner's equity 
C) Assets, Revenues, Liabilities, Expenses, Owner's equity 
D) Assets, Liabilities, Owner's equity, Revenues, Expenses 
A) Assets, Liabilities, Revenues, Expenses, Owner's equity 
B) Assets, Expenses, Liabilities, Revenues, Owner's equity 
C) Assets, Revenues, Liabilities, Expenses, Owner's equity 
D) Assets, Liabilities, Owner's equity, Revenues, Expenses

Question 18

A journal entry for a $75 payment for Rent expense was posted as a debit to Salary 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 $75. 
C) The sum of the debits will exceed the sum of the credits by $150. 
D) The sum of the credits will exceed the sum of the debits by $150. 
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 $75. 
C) The sum of the debits will exceed the sum of the credits by $150. 
D) The sum of the credits will exceed the sum of the debits by $150.

Question 19

A business renders service to a client and sends out a sales invoice. The amount will be collected from the customer at a later time. Which of the following would be TRUE at the time when the invoice is sent out?

Accepted Answer

A) Owner's equity will decrease. 
B) Total liabilities will increase. 
C) Total assets will decrease. 
D) Net income will increase. 
A) Owner's equity will decrease. 
B) Total liabilities will increase. 
C) Total assets will decrease. 
D) Net income will increase.

Question 20

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

Accepted Answer

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

Exam 2: Recording Business Transactions

A business pays salary expense of $4,000 in cash. Please provide the journal entry (debits first, credits second.)

Equipment is purchased for cash. Which of the following would be TRUE?

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

At the end of the month, the business receives a bill for utility expenses of $800 incurred during the month. The business will pay the bill during the following month. Please provide the journal entry (debits first, credits second.)

The trial balance is one of the three basic financial statements.

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

In the accounting system, the first place that transactions are recorded is the ledger.

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

The first step of journalizing an entry is to:

The trial balance shows total amounts for assets, liabilities, and equity.

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

Which of the following accounts is an asset?

Which of the following statements about revenue is CORRECT?

The following are the ending month's balances for Toys Galore. What would be the first account listed on the trial balance for Toys Galore?

The owner's capital account is increased by a debit.

A business purchases land for $100,000 cash. Please provide the journal entry (debits first, credits second.)

A trial balance lists accounts in which order?

A journal entry for a $75 payment for Rent expense was posted as a debit to Salary expense and a credit to Cash. This error will cause which of the following conditions on the trial balance?

A business renders service to a client and sends out a sales invoice. The amount will be collected from the customer at a later time. Which of the following would be TRUE at the time when the invoice is sent out?

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

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

Filters