Question 1

A business pays $500 cash for supplies. 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 2

At the end of a month, a business shows the following balances in its ledger.
   Please use this data to prepare a trial balance.

Accepted Answer

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

Question 3

Which of the following accounts is an example of a liability?

Accepted Answer

A) Service revenue 
B) Building 
C) Accounts receivable 
D) Notes payable 
A) Service revenue 
B) Building 
C) Accounts receivable 
D) Notes payable

Question 4

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.
How much was net income?

Accepted Answer

A) $700 
B) $300 
C) $3,300 
D) $2,450 
A) $700 
B) $300 
C) $3,300 
D) $2,450

Question 5

Which of the following journal entries would be recorded if Jane Brown started a business, and then deposited cash of $6,000 into the business's bank account?

Accepted Answer

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

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

A business renders services for $16,000 and collects cash from the customer. Which account is credited?

Accepted Answer

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

Question 8

The following are the ending month's balances for Toys Galore, before preparing the trial balance.   What amount should be shown for Capital on the trial balance?

Accepted Answer

A) $930 
B) $16,190 
C) $42,330 
D) $21,165 
A) $930 
B) $16,190 
C) $42,330 
D) $21,165

Question 9

For Capital, 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 10

Which of the following is NOT part of owner's equity?

Accepted Answer

A) Accounts receivable 
B) Capital 
C) Notes payable 
D) Both A and C 
A) Accounts receivable 
B) Capital 
C) Notes payable 
D) Both A and C

Question 11

A business renders services to its customer for $350 on account. Please provide the journal entry (debits first, credits second.)

Accepted Answer

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

Question 12

On a trial balance, which accounts are listed last?

Accepted Answer

A) Expenses 
B) Revenues 
C) Liabilities 
D) Assets 
A) Expenses 
B) Revenues 
C) Liabilities 
D) Assets

Question 13

Assets, Drawing, and Expenses have a normal balance on the debit side.

Accepted Answer

A) True 
 B)False

Question 14

A business makes a cash payment of $12,000 to a creditor. Which account is credited?

Accepted Answer

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

Question 15

A business purchases equipment for cash in the amount of $8,000. Which account is debited?

Accepted Answer

A) Cash 
B) Accounts payable 
C) Utilities expense 
D) Equipment 
A) Cash 
B) Accounts payable 
C) Utilities expense 
D) Equipment

Question 16

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

Accepted Answer

A) True 
 B)False

A business pays $500 cash for supplies. Which account is credited?

At the end of a month, a business shows the following balances in its ledger. Please use this data to prepare a trial balance.

Which of the following accounts is an example of a liability?

Which of the following journal entries would be recorded if Jane Brown started a business, and then deposited cash of $6,000 into the business's bank account?

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

A business renders services for $16,000 and collects cash from the customer. Which account is credited?

The following are the ending month's balances for Toys Galore, before preparing the trial balance. What amount should be shown for Capital on the trial balance?

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

Which of the following is NOT part of owner's equity?

A business renders services to its customer for $350 on account. Please provide the journal entry (debits first, credits second.)

On a trial balance, which accounts are listed last?

Assets, Drawing, and Expenses have a normal balance on the debit side.

A business makes a cash payment of $12,000 to a creditor. Which account is credited?

A business purchases equipment for cash in the amount of $8,000. Which account is debited?

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

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

Exam 2: Recording Business Transactions

A business pays $500 cash for supplies. Which account is credited?

At the end of a month, a business shows the following balances in its ledger. Please use this data to prepare a trial balance.

Which of the following accounts is an example of a liability?

Which of the following journal entries would be recorded if Jane Brown started a business, and then deposited cash of $6,000 into the business's bank account?

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

A business renders services for $16,000 and collects cash from the customer. Which account is credited?

The following are the ending month's balances for Toys Galore, before preparing the trial balance. What amount should be shown for Capital on the trial balance?

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

Which of the following is NOT part of owner's equity?

A business renders services to its customer for $350 on account. Please provide the journal entry (debits first, credits second.)

On a trial balance, which accounts are listed last?

Assets, Drawing, and Expenses have a normal balance on the debit side.

A business makes a cash payment of $12,000 to a creditor. Which account is credited?

A business purchases equipment for cash in the amount of $8,000. Which account is debited?

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

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