Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The accounting process of transferring a transaction from the journal to the ledger is called ________.

Accepted Answer

A) journalizing 
B) posting 
C) compounding 
D) sourcing 
A) journalizing 
B) posting 
C) compounding 
D) sourcing

Question 3

Calculate the debt ratio using the following trial balance of Melody Instruments,Inc.as of December 31,2015.

Accepted Answer

@#IMG-DLM& @#IMG-DLM& Debt ratio = Total

Question 4

A liability created when a business collects cash from customers in advance of providing services or delivering goods is called a(n)________.

Accepted Answer

A) notes receivable 
B) unearned revenues 
C) equity 
D) revenues 
A) notes receivable 
B) unearned revenues 
C) equity 
D) revenues

Question 5

A business makes a cash payment to a supplier for Office Supplies which were purchased earlier on account.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 6

Which of the following groups of accounts normally have a credit balance?

Accepted Answer

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

Question 7

The balances in the accounts of liabilities and revenues are increased with a credit.

Accepted Answer

A) True 
 B)False

Question 8

Which type of an account is Common Stock?

Accepted Answer

A) equity 
B) asset 
C) liability 
D) revenue 
A) equity 
B) asset 
C) liability 
D) revenue

Question 9

Which of the following accounts decreases with a debit?

Accepted Answer

A) Accounts Receivable 
B) Notes Payable 
C) Cash 
D) Land 
A) Accounts Receivable 
B) Notes Payable 
C) Cash 
D) Land

Question 10

The trial balance is one of the three basic financial statements that are issued to external stakeholders of the business.

Accepted Answer

A) True 
 B)False

Question 11

The following transactions have been journalized and posted to the proper accounts.Prepare a trial balance at the end of the first month using the following details:
a.The business received $15,000 cash and issued common stock.
b.Paid the first month's rent with $800 cash.
c.Purchased equipment by paying $4,000 cash and executing a note payable for $4,000.
d.Purchased office supplies for $200 cash.The supplies are left at the end of the month.
e.Billed clients for a total of $7,000 for design services rendered.
f.Received $1,000 cash from clients for services rendered above.

Accepted Answer

The answer of The following transactions have been journalized and...

Question 12

Posting a transaction means ________.

Accepted Answer

A) calculating the balance in an account 
B) transferring data from the journal to the ledger 
C) preparing a summary of account balances 
D) finding the account number in the chart of accounts 
A) calculating the balance in an account 
B) transferring data from the journal to the ledger 
C) preparing a summary of account balances 
D) finding the account number in the chart of accounts

Question 13

After initially recording a transaction,the data is then transferred to the ________.

Accepted Answer

A) chart of accounts 
B) ledger 
C) trial balance 
D) journal 
A) chart of accounts 
B) ledger 
C) trial balance 
D) journal

Question 14

Which of the following journal entries would be recorded if Christy Jones Inc.issued stock to the public and received $3000?

Accepted Answer

A)  $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 3,000 & \
\hline \text { Common Stock } & & 3,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | r | r | } 
\hline \text { Accounts Payable } & 3,000 & \
\hline \text { Cash } & & 3,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | c | r | r | } 
\hline \text { Common Stock } & 3,000 & \
\hline \text { Cash } & & 3,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | c | r | r | } 
\hline \text { Common Stock } & 3,000 & \
\hline \text { Accounts Payable } & & 3,000 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 3,000 & \
\hline \text { Common Stock } & & 3,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | r | r | } 
\hline \text { Accounts Payable } & 3,000 & \
\hline \text { Cash } & & 3,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | c | r | r | } 
\hline \text { Common Stock } & 3,000 & \
\hline \text { Cash } & & 3,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | c | r | r | } 
\hline \text { Common Stock } & 3,000 & \
\hline \text { Accounts Payable } & & 3,000 \
\hline
\end{array}$$

Question 15

Which of the following accounts has a normal debit balance?

Accepted Answer

A) Revenue 
B) Notes Payable 
C) Cash 
D) Accounts Payable 
A) Revenue 
B) Notes Payable 
C) Cash 
D) Accounts Payable

Question 16

A trial balance summarizes a ledger by listing all the accounts with their balances at a point in time.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following accounts decreases with a credit?

Accepted Answer

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

Question 18

A business collects cash from a customer on settlement of accounts receivable.Which of the following accounts will be 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 19

Which of the following is a liability account?

Accepted Answer

A) Accounts Payable 
B) Prepaid Expense 
C) Salaries Expense 
D) Service Revenue 
A) Accounts Payable 
B) Prepaid Expense 
C) Salaries Expense 
D) Service Revenue

Question 20

A business makes a cash payment to a supplier on account for Office Supplies which were purchased earlier.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

Exam 2: Recording Business Transactions

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

The accounting process of transferring a transaction from the journal to the ledger is called ________.

Calculate the debt ratio using the following trial balance of Melody Instruments,Inc.as of December 31,2015.

A liability created when a business collects cash from customers in advance of providing services or delivering goods is called a(n)________.

A business makes a cash payment to a supplier for Office Supplies which were purchased earlier on account.Which of the following accounts will be debited?

Which of the following groups of accounts normally have a credit balance?

The balances in the accounts of liabilities and revenues are increased with a credit.

Which type of an account is Common Stock?

Which of the following accounts decreases with a debit?

The trial balance is one of the three basic financial statements that are issued to external stakeholders of the business.

Posting a transaction means ________.

After initially recording a transaction,the data is then transferred to the ________.

Which of the following journal entries would be recorded if Christy Jones Inc.issued stock to the public and received $3000?

Which of the following accounts has a normal debit balance?

A trial balance summarizes a ledger by listing all the accounts with their balances at a point in time.

Which of the following accounts decreases with a credit?

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

Which of the following is a liability account?

A business makes a cash payment to a supplier on account for Office Supplies which were purchased earlier.Which of the following accounts will be credited?

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

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