Question 1

Which of the following is an asset account?

Accepted Answer

A) Cash 
B) Notes Payable 
C) Dividends 
D) Expenses 
A) Cash 
B) Notes Payable 
C) Dividends 
D) Expenses

Question 2

Which of the following accounts increases with a credit?

Accepted Answer

A) Cash 
B) Common Stock 
C) Accounts Receivable 
D) Prepaid Expenses 
A) Cash 
B) Common Stock 
C) Accounts Receivable 
D) Prepaid Expenses

Question 3

The Accounts Payable 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 4

A trial balance is a list of all of the accounts of a company with their balances.

Accepted Answer

A) True 
 B)False

Question 5

A chart of accounts is a detailed record of the changes in a particular asset,liability,or stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 6

Journalizing a transaction involves ________.

Accepted Answer

A) calculating the balance in an account using journal entries 
B) posting the account balances in the chart of accounts 
C) preparing a summary of account balances 
D) recording the data only in the journal 
A) calculating the balance in an account using journal entries 
B) posting the account balances in the chart of accounts 
C) preparing a summary of account balances 
D) recording the data only in the journal

Question 7

The trial balance summarizes the balances of assets,liabilities,and equity.

Accepted Answer

A) True 
 B)False

Question 8

The last step before preparing financial statements is to ________.

Accepted Answer

A) post all entries 
B) record all transactions in the journal 
C) prepare the trial balance 
D) review source documents 
A) post all entries 
B) record all transactions in the journal 
C) prepare the trial balance 
D) review source documents

Question 9

The account title used for recording the payment of rent in advance for an office building is ________.

Accepted Answer

A) prepaid rent 
B) rent payable 
C) rent revenue 
D) rent expense 
A) prepaid rent 
B) rent payable 
C) rent revenue 
D) rent expense

Question 10

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 stockholders' equity 
D) assets and liabilities 
A) assets and expenses 
B) revenues and expenses 
C) liabilities and stockholders' equity 
D) assets and liabilities

Question 11

A business repays the amount borrowed on a note payable by cash.Which of the following accounts will be debited?

Accepted Answer

A) Cash 
B) Bank 
C) Notes Payable 
D) Notes Receivable 
A) Cash 
B) Bank 
C) Notes Payable 
D) Notes Receivable

Question 12

A listing of all account titles in numerical order is called a(n)________.

Accepted Answer

A) ledger 
B) journal 
C) income statement 
D) chart of accounts 
A) ledger 
B) journal 
C) income statement 
D) chart of accounts

Question 13

Which of the following is used by both internal and external users to the company?

Accepted Answer

A) chart of accounts 
B) trial balance 
C) balance sheet 
D) costing reports 
A) chart of accounts 
B) trial balance 
C) balance sheet 
D) costing reports

Question 14

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

Accepted Answer

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

Question 15

An accounting entry that is characterized by having multiple debits and/or multiple credits is called a ________ entry.

Accepted Answer

A) balanced 
B) posted 
C) chart of accounts 
D) compound journal 
A) balanced 
B) posted 
C) chart of accounts 
D) compound journal

Question 16

A business renders services to a client and issues 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 the invoice is issued?

Accepted Answer

A) stockholders' equity will decrease 
B) total liabilities will increase 
C) total assets will decrease 
D) net income will increase 
A) stockholders' equity will decrease 
B) total liabilities will increase 
C) total assets will decrease 
D) net income will increase

Question 17

A business paid salaries of $6,000 in cash.Record the transaction in the journal.

Accepted Answer

The answer of A business paid salaries of $6,000 in...

Question 18

The normal balance of an account is the increase side of the account.

Accepted Answer

A) True 
 B)False

Question 19

The higher the debt ratio,the lower the risk.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is an asset account?

Accepted Answer

A) Wages Payable 
B) Notes Payable 
C) Unearned Revenue 
D) Accounts Receivable 
A) Wages Payable 
B) Notes Payable 
C) Unearned Revenue 
D) Accounts Receivable

Exam 2: Recording Business Transactions

Which of the following is an asset account?

Which of the following accounts increases with a credit?

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

A trial balance is a list of all of the accounts of a company with their balances.

A chart of accounts is a detailed record of the changes in a particular asset,liability,or stockholders' equity.

Journalizing a transaction involves ________.

The trial balance summarizes the balances of assets,liabilities,and equity.

The last step before preparing financial statements is to ________.

The account title used for recording the payment of rent in advance for an office building is ________.

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

A business repays the amount borrowed on a note payable by cash.Which of the following accounts will be debited?

A listing of all account titles in numerical order is called a(n)________.

Which of the following is used by both internal and external users to the company?

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

An accounting entry that is characterized by having multiple debits and/or multiple credits is called a ________ entry.

A business renders services to a client and issues 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 the invoice is issued?

A business paid salaries of $6,000 in cash.Record the transaction in the journal.

The normal balance of an account is the increase side of the account.

The higher the debt ratio,the lower the risk.

Which of the following is an asset account?

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 Payable account is a(n) account and carries a normal balance.