Question 1

The purchase of office furniture on account (that is,on credit)would include a:

Accepted Answer

A)  credit to Accounts Payable 
B)  credit to Office Furniture 
C)  debit to Accounts Receivable 
D)  credit to Cash 
A)  credit to Accounts Payable 
B)  credit to Office Furniture 
C)  debit to Accounts Receivable 
D)  credit to Cash

Question 2

The accounting transaction to record payment of the advertising bill would include a:

Accepted Answer

A)  debit to Cash 
B)  credit to Accounts Payable 
C)  debit to Advertising Expense 
D)  debit to Accounts Receivable 
A)  debit to Cash 
B)  credit to Accounts Payable 
C)  debit to Advertising Expense 
D)  debit to Accounts Receivable

Question 3

A credit decreases the balance of which types of accounts?

Accepted Answer

A)  expenses and assets 
B)  liabilities and expenses 
C)  assets and liabilities 
D)  assets and shareholders' equity 
A)  expenses and assets 
B)  liabilities and expenses 
C)  assets and liabilities 
D)  assets and shareholders' equity

Question 4

From the following list of transactions,prepare a trial balance dated March 31,2017,for Niko Inc.,which began operations on March 1,2017.
a.Sold 600 common shares for $12,000.
b.Located a building suitable for a dry cleaning business,paying the first month's rent of $2,000.
c.Purchased cleaning supplies for $500 cash.
d.Purchased cleaning equipment on account costing $6,000.
e.Services of $5,000 were rendered for cash during the month.
f.Paid $1,500 salaries to employees for the month.
g.Paid utilities bill of $500 for the month.

Accepted Answer

The answer of From the following list of transactions,prepare a...

Question 5

The normal balance of the Common Shares account is a ________ because it increases ________.

Accepted Answer

A)  debit; assets 
B)  credit; shareholders' equity 
C)  credit; liabilities 
D)  debit; expenses 
A)  debit; assets 
B)  credit; shareholders' equity 
C)  credit; liabilities 
D)  debit; expenses

Question 6

Where is information for each account stored?

Accepted Answer

Information for each account is stored i

Question 7

An owners' investment of land and a building into the business would include a:

Accepted Answer

A)  debit to Land and a credit to Common shares 
B)  debit to Land and a credit to Building 
C)  debit to Common shares and a credit to Building 
D)  debit to Building and a debit to Common shares 
A)  debit to Land and a credit to Common shares 
B)  debit to Land and a credit to Building 
C)  debit to Common shares and a credit to Building 
D)  debit to Building and a debit to Common shares

Question 8

Prepaid rent is an expense because the payment provides a future benefit of the company.

Accepted Answer

A) True 
 B)False

Question 9

The entry to record the purchase of supplies on account would include a:

Accepted Answer

A)  credit to the Accounts Payable account 
B)  debit to the Retained Earnings account 
C)  credit to the Cash account 
D)  credit to the Supplies account 
A)  credit to the Accounts Payable account 
B)  debit to the Retained Earnings account 
C)  credit to the Cash account 
D)  credit to the Supplies account

Question 10

A credit always decreases an asset account.

Accepted Answer

A) True 
 B)False

Question 11

The right side of a T-account is always the:

Accepted Answer

A)  increase side 
B)  credit side 
C)  debit side 
D)  decrease side 
A)  increase side 
B)  credit side 
C)  debit side 
D)  decrease side

Question 12

The purchase of office equipment for cash would include a:

Accepted Answer

A)  debit to Cash 
B)  debit to Office Equipment 
C)  credit to Accounts Payable 
D)  credit to Office Equipment 
A)  debit to Cash 
B)  debit to Office Equipment 
C)  credit to Accounts Payable 
D)  credit to Office Equipment

Question 13

An owner investment of a building,valued at $100,000 with an $80,000 outstanding mortgage,transferring this asset into the business would:

Accepted Answer

A)  increase assets by $20,000 
B)  increase assets by $80,000 
C)  increase shareholders' equity by $20,000 
D)  increase shareholders' equity by $100,000 
A)  increase assets by $20,000 
B)  increase assets by $80,000 
C)  increase shareholders' equity by $20,000 
D)  increase shareholders' equity by $100,000

Question 14

Prepare a trial balance for Zeng Inc.dated April 30,2017,based on the following transactions that occurred during the month of June.
a.Owner invested $55,000 cash into the business and received common shares in return.
b.Rented an office and paid one month's rent,$700.
c.Purchased $600 of supplies on account.
d.Performed services on account,$7,500.
e.Paid $4,200 cash for office furniture.
f.Owner received a dividend of $500.
g.Collected $3,000 on account.

Accepted Answer

The answer of Prepare a trial balance for Zeng Inc.dated...

Question 15

Which of the following statements regarding accounts is correct?

Accepted Answer

A)  Assets are decreased by debits. 
B)  Expenses are decreased by debits. 
C)  Revenues are increased by debits. 
D)  Liabilities are decreased by debits. 
A)  Assets are decreased by debits. 
B)  Expenses are decreased by debits. 
C)  Revenues are increased by debits. 
D)  Liabilities are decreased by debits.

Question 16

Receiving cash from a customer on account would include a:

Accepted Answer

A)  debit to Accounts Receivable and a credit to Cash 
B)  debit to Cash and a credit to Accounts Payable 
C)  debit to Accounts Payable and a credit to Cash 
D)  debit to Cash and a credit to Accounts Receivable 
A)  debit to Accounts Receivable and a credit to Cash 
B)  debit to Cash and a credit to Accounts Payable 
C)  debit to Accounts Payable and a credit to Cash 
D)  debit to Cash and a credit to Accounts Receivable

Question 17

A trial balance has all of the following features listed below except:

Accepted Answer

A)  a heading 
B)  subtotals for assets, liabilities, and shareholders' equity 
C)  totals for both debits and credits 
D)  accounts listed in order, assets first, followed by liabilities and then shareholders' equity 
A)  a heading 
B)  subtotals for assets, liabilities, and shareholders' equity 
C)  totals for both debits and credits 
D)  accounts listed in order, assets first, followed by liabilities and then shareholders' equity

Question 18

Note payable,accounts payable,and salary payable are all examples of:

Accepted Answer

A)  assets 
B)  revenue 
C)  expenses 
D)  liabilities 
A)  assets 
B)  revenue 
C)  expenses 
D)  liabilities

Question 19

Which of the following statements regarding a trial balance is false?

Accepted Answer

A)  A trial balance may be taken at any time the postings are up to date. 
B)  A trial balance is a list of all accounts with their balances. 
C)  A trial balance is the same as a balance sheet. 
D)  A trial balance provides a check on the equality of debits and credits. 
A)  A trial balance may be taken at any time the postings are up to date. 
B)  A trial balance is a list of all accounts with their balances. 
C)  A trial balance is the same as a balance sheet. 
D)  A trial balance provides a check on the equality of debits and credits.

Question 20

All of the following accounts would be considered assets except for:

Accepted Answer

A)  Cash 
B)  Common Shares 
C)  Prepaid Expenses 
D)  Notes Receivable 
A)  Cash 
B)  Common Shares 
C)  Prepaid Expenses 
D)  Notes Receivable

The purchase of office furniture on account (that is,on credit)would include a:

The accounting transaction to record payment of the advertising bill would include a:

A credit decreases the balance of which types of accounts?

The normal balance of the Common Shares account is a because it increases .

Where is information for each account stored?

An owners' investment of land and a building into the business would include a:

Prepaid rent is an expense because the payment provides a future benefit of the company.

The entry to record the purchase of supplies on account would include a:

A credit always decreases an asset account.

The right side of a T-account is always the:

The purchase of office equipment for cash would include a:

An owner investment of a building,valued at $100,000 with an $80,000 outstanding mortgage,transferring this asset into the business would:

Which of the following statements regarding accounts is correct?

Receiving cash from a customer on account would include a:

A trial balance has all of the following features listed below except:

Note payable,accounts payable,and salary payable are all examples of:

Which of the following statements regarding a trial balance is false?

All of the following accounts would be considered assets except for:

The Financial Statements

Accrual Accounting and the Financial Statements

Cash and Receivables

Inventory and Cost of Goods Sold

Property, plant, and Equipment, and Intangible Assets

Investments and the Time Value of Money

Liabilities

Shareholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Recording Business Transactions

The purchase of office furniture on account (that is,on credit)would include a:

The accounting transaction to record payment of the advertising bill would include a:

A credit decreases the balance of which types of accounts?

The normal balance of the Common Shares account is a ________ because it increases ________.

Where is information for each account stored?

An owners' investment of land and a building into the business would include a:

Prepaid rent is an expense because the payment provides a future benefit of the company.

The entry to record the purchase of supplies on account would include a:

A credit always decreases an asset account.

The right side of a T-account is always the:

The purchase of office equipment for cash would include a:

An owner investment of a building,valued at $100,000 with an $80,000 outstanding mortgage,transferring this asset into the business would:

Which of the following statements regarding accounts is correct?

Receiving cash from a customer on account would include a:

A trial balance has all of the following features listed below except:

Note payable,accounts payable,and salary payable are all examples of:

Which of the following statements regarding a trial balance is false?

All of the following accounts would be considered assets except for:

The Financial Statements

Accrual Accounting and the Financial Statements

Cash and Receivables

Inventory and Cost of Goods Sold

Property, plant, and Equipment, and Intangible Assets

Investments and the Time Value of Money

Liabilities

Shareholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters

The normal balance of the Common Shares account is a because it increases .