Question 1

Sandra invests $40,000 in her new business by depositing the cash in the business's bank account. Which of the following accounts will be credited?

Accepted Answer

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

Question 2

Beetles Inc. recorded the following journal entry on March 2, 2014: $$\begin{array} { | c | r | r | } 
\hline\text {Cash} & 5,000 & \
\hline \text { Unearned Revenue } & & 5,000 \
\hline
\end{array}$$ 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 3

When a business records an expense incurred, the Expense account is credited.

Accepted Answer

A) True 
 B)False

Question 4

The following are the current month's balances for Toys Galore, before preparing the trial balance. $$\begin{array} { | l | r | } 
\hline \text { Accounts Payable } & \$ 8,000 \
\hline \text { Revenue } & 10,000 \
\hline \text { Cash } & 5,000 \
\hline \text { Expenses } & 1,750 \
\hline \text { Fumiture } & 12,000 \
\hline \text { Accounts Receivable } & 14,000 \
\hline \text { Tones, Capital } & ? ? ? \
\hline \text { Notes Payable } & 6,50 \
\hline
\end{array}$$ What amount should be shown for Jones, Capital on the trial balance?

Accepted Answer

A)  $16,500 
B)  $8,250 
C)  $14,500 
D)  $31,000 
A)  $16,500 
B)  $8,250 
C)  $14,500 
D)  $31,000

Question 5

A business makes a payment in cash for advertising expense. Which of the following accounts will be debited?

Accepted Answer

A)  Cash 
B)  Bank 
C)  Accounts Receivable 
D)  Advertising Expense 
A)  Cash 
B)  Bank 
C)  Accounts Receivable 
D)  Advertising Expense

Question 6

A journal entry for a $75 payment for rent expense was posted as a debit to Salaries 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 7

Which of the following accounts increases with a credit?

Accepted Answer

A)  Cash 
B)  Smith, Capital 
C)  Accounts Receivable 
D)  Prepaid Expenses 
A)  Cash 
B)  Smith, Capital 
C)  Accounts Receivable 
D)  Prepaid Expenses

Question 8

A business has the following transactions: The business is started by receiving $25,000 from the owner. The business purchased $700 of office supplies on account and $2,500 of furniture on account. The business rendered services to various clients totaling $10,000 on account. It paid $5,000 as salaries expense and $6,000 as rent expense. It paid $1,000 to a supplier for the office supplies purchased earlier. It collected $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 Payable account will appear as:

Accepted Answer

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

Question 9

The following are the current month's balances for Toys Galore: $$\begin{array} { | l | r | } 
\hline \text { Accounts Payable } & \$ 8,000 \
\hline \text { Revenue } & 10,000 \
\hline \text { Cash } & 5,000 \
\hline \text { Expenses } & 1,750 \
\hline \text { Fumiture } & 12,000 \
\hline \text { Accounts Receivable } & 14,000 \
\hline \text { Tones, Capital } & 8,250 \
\hline \text { Notes Payable } & 6,500 \
\hline
\end{array}$$ What is the total amount of debits for the trial balance?

Accepted Answer

A)  $26,000 
B)  $27,750 
C)  $31,000 
D)  $32,750 
A)  $26,000 
B)  $27,750 
C)  $31,000 
D)  $32,750

Question 10

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 11

A business renders services to its customer for $50,000 on account. Provide the journal entry (debits first, credits second.)

Accepted Answer

Performed

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Which of the following groups of accounts will decrease with a debit?

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 14

Accountants first record transactions in a:

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 15

An asset account is increased by a debit.

Accepted Answer

A) True 
 B)False

Sandra invests $40,000 in her new business by depositing the cash in the business's bank account. Which of the following accounts will be credited?

Beetles Inc. recorded the following journal entry on March 2, 2014: Cash 5,000 Unearned Revenue 5,000 From the journal entry above, identify the transaction on March 2, 2014.

When a business records an expense incurred, the Expense account is credited.

A business makes a payment in cash for advertising expense. Which of the following accounts will be debited?

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

Which of the following accounts increases with a credit?

The following are the current month's balances for Toys Galore: Accounts Payable \ 8,000 Revenue 10,000 Cash 5,000 Expenses 1,750 Fumiture 12,000 Accounts Receivable 14,000 Tones, Capital 8,250 Notes Payable 6,500 What is the total amount of debits for the trial balance?

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

A business renders services to its customer for $50,000 on account. Provide the journal entry (debits first, credits second.)

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

Which of the following groups of accounts will decrease with a debit?

Accountants first record transactions in a:

An asset account is increased by a debit.

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

Sandra invests $40,000 in her new business by depositing the cash in the business's bank account. Which of the following accounts will be credited?

Beetles Inc. recorded the following journal entry on March 2, 2014: Cash 5,000 Unearned Revenue 5,000 From the journal entry above, identify the transaction on March 2, 2014.

When a business records an expense incurred, the Expense account is credited.

A business makes a payment in cash for advertising expense. Which of the following accounts will be debited?

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

Which of the following accounts increases with a credit?

The following are the current month's balances for Toys Galore: Accounts Payable \ 8,000 Revenue 10,000 Cash 5,000 Expenses 1,750 Fumiture 12,000 Accounts Receivable 14,000 Tones, Capital 8,250 Notes Payable 6,500 What is the total amount of debits for the trial balance?

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

A business renders services to its customer for $50,000 on account. Provide the journal entry (debits first, credits second.)

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

Which of the following groups of accounts will decrease with a debit?

Accountants first record transactions in a:

An asset account is increased by a debit.

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