Question 1

The Accounts Receivable account is a(n)________ account and carries a ________ normal balance.

Accepted Answer

A) liability; debit 
B) asset; debit 
C) liability; credit 
D) asset; credit 
A) liability; debit 
B) asset; debit 
C) liability; credit 
D) asset; credit

Question 2

A business pays $500 cash for office supplies.Which of the following accounts will be credited?

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Office Supplies 
D) Utilities Expense 
A) Cash 
B) Accounts Payable 
C) Office Supplies 
D) Utilities Expense

Question 3

The ability of a company to repay its liabilities can be determined from its ________.

Accepted Answer

A) bankers 
B) creditors 
C) debt ratio 
D) journal 
A) bankers 
B) creditors 
C) debt ratio 
D) journal

Question 4

Which of the following accounts increases with a debit?

Accepted Answer

A) Cash 
B) Interest Payable 
C) Accounts Payable 
D) Common Stock 
A) Cash 
B) Interest Payable 
C) Accounts Payable 
D) Common Stock

Question 5

Camile Plastics Company had the following total assets,liabilities,and equity as of December 31.   What is the company's debt ratio as of December 31?

Accepted Answer

A) 30% 
B) 70% 
C) 100% 
D) 43% 
A) 30% 
B) 70% 
C) 100% 
D) 43%

Question 6

The Dividends account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 7

For Revenues,the category of account and its normal balance is ________.

Accepted Answer

A) stockholders' equity and a credit balance 
B) assets and a debit balance 
C) assets and a credit balance 
D) stockholders' equity and a debit balance 
A) stockholders' equity and a credit balance 
B) assets and a debit balance 
C) assets and a credit balance 
D) stockholders' equity and a debit balance

Question 8

The following are the current month's balances for Toys Galore Inc.   
-What is the net income for Toys Galore Inc.for the current month?

Accepted Answer

A) $10,000 
B) $8,250 
C) $11,750 
D) $15,000 
A) $10,000 
B) $8,250 
C) $11,750 
D) $15,000

Question 9

The trial balance is an internal document used only by employees of the company.

Accepted Answer

A) True 
 B)False

Question 10

For Stockholders' Equity,the category of accounting equation and its normal balance is ________.

Accepted Answer

A) equity and a credit balance 
B) assets and a debit balance 
C) equity and a debit balance 
D) assets and a credit balance 
A) equity and a credit balance 
B) assets and a debit balance 
C) equity and a debit balance 
D) assets and a credit balance

Question 11

The Accounts Receivable account of Nuptials Inc.is shown below. $$\begin{array} { | r | r | } 
\hline { \text { Accounts Receivable } } \
\hline 26,000 & 3,500 \
5,000 & \
& \
\hline & \
\hline
\end{array}$$ Calculate the ending balance of the account.

Accepted Answer

A) $33,500,debit 
B) $31,000,debit 
C) $3,500,credit 
D) $27,500,debit 
A) $33,500,debit 
B) $31,000,debit 
C) $3,500,credit 
D) $27,500,debit

Question 12

A business purchases equipment for $8,000 cash.Which of the following accounts will be debited?

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Common Stock 
D) Equipment 
A) Cash 
B) Accounts Payable 
C) Common Stock 
D) Equipment

Question 13

A business collects cash from a customer on settlement of accounts receivable.Which of the following accounts will be debited?

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 14

An asset account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Which of the following journal entries would be recorded if a business makes a cash payment to a supplier of $750 on account? (The business had purchased office supplies on account in the previous month.)

Accepted Answer

A)  $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 750 & \
\hline \text { Accounts Payable } & & 750 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | r | r | } 
\hline \text { Accounts Payable } & 750 & \
\hline \text { Cash } & & 750 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 750 & \
\hline \text { Office Supplies } & & 750 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | c | r | r | } 
\hline \text { Accounts Payable } & 750 & \
\hline \text { Office Supplies } & & 750 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 750 & \
\hline \text { Accounts Payable } & & 750 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | r | r | } 
\hline \text { Accounts Payable } & 750 & \
\hline \text { Cash } & & 750 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 750 & \
\hline \text { Office Supplies } & & 750 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | c | r | r | } 
\hline \text { Accounts Payable } & 750 & \
\hline \text { Office Supplies } & & 750 \
\hline
\end{array}$$

Question 17

A payable involves a future receipt of cash.

Accepted Answer

A) True 
 B)False

Question 18

Whitney Chemicals Company received cash of $40,000 by issuing 4,000 common shares at $10 each.Which of the following accounts will be credited?

Accepted Answer

A) Accounts Receivable 
B) Cash 
C) Common Stock 
D) Accounts Payable 
A) Accounts Receivable 
B) Cash 
C) Common Stock 
D) Accounts Payable

Question 19

A business pays $500 cash for office supplies.Which of the following accounts will be debited?

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Office Supplies 
D) Utilities Expense 
A) Cash 
B) Accounts Payable 
C) Office Supplies 
D) Utilities Expense

Question 20

A shortened form of an account in the ledger is called a ________.

Accepted Answer

A) trial balance 
B) balance sheet 
C) chart of accounts 
D) T-account 
A) trial balance 
B) balance sheet 
C) chart of accounts 
D) T-account

Exam 2: Recording Business Transactions

The Accounts Receivable account is a(n)________ account and carries a ________ normal balance.

A business pays $500 cash for office supplies.Which of the following accounts will be credited?

The ability of a company to repay its liabilities can be determined from its ________.

Which of the following accounts increases with a debit?

Camile Plastics Company had the following total assets,liabilities,and equity as of December 31. What is the company's debt ratio as of December 31?

The Dividends account is increased by a debit.

For Revenues,the category of account and its normal balance is ________.

The following are the current month's balances for Toys Galore Inc. -What is the net income for Toys Galore Inc.for the current month?

The trial balance is an internal document used only by employees of the company.

For Stockholders' Equity,the category of accounting equation and its normal balance is ________.

The Accounts Receivable account of Nuptials Inc.is shown below. Accounts Receivable 26,000 3,500 5,000 Calculate the ending balance of the account.

A business purchases equipment for $8,000 cash.Which of the following accounts will be debited?

A business collects cash from a customer on settlement of accounts receivable.Which of the following accounts will be debited?

An asset account is increased by a debit.

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

Which of the following journal entries would be recorded if a business makes a cash payment to a supplier of $750 on account? (The business had purchased office supplies on account in the previous month.)

A payable involves a future receipt of cash.

Whitney Chemicals Company received cash of $40,000 by issuing 4,000 common shares at $10 each.Which of the following accounts will be credited?

A business pays $500 cash for office supplies.Which of the following accounts will be debited?

A shortened form of an account in the ledger is called a ________.

Accounting and the Business Environment

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Investments

Current Liabilities and Payroll

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Accounting Information Systems

Filters

The Accounts Receivable account is a(n) account and carries a normal balance.