Question 1

A business paid cash dividends to shareholders.Which of the following accounts will be debited?

Accepted Answer

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

Question 2

A business makes a cash payment of $12,000 to a creditor.Which of the following accounts will be credited?

Accepted Answer

A) Cash 
B) Accounts payable 
C) Bank 
D) Accounts receivable 
A) Cash 
B) Accounts payable 
C) Bank 
D) Accounts receivable

Question 3

Which of the following is the final step in the journalizing and posting process?

Accepted Answer

A) posting the accounts to the ledger 
B) identifying each account affected and its type 
C) determining whether the accounting equation is in balance 
D) determining whether each account has increased or decreased 
A) posting the accounts to the ledger 
B) identifying each account affected and its type 
C) determining whether the accounting equation is in balance 
D) determining whether each account has increased or decreased

Question 4

Amounts earned from delivering goods or services to customers are called ________.

Accepted Answer

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

Question 5

When is a trial balance usually prepared?

Accepted Answer

A) after each entry is journalized 
B) before the financial statements are prepared 
C) after the financial statements are prepared 
D) at the beginning of an accounting period 
A) after each entry is journalized 
B) before the financial statements are prepared 
C) after the financial statements are prepared 
D) at the beginning of an accounting period

Question 6

All asset accounts and equity accounts increase with a debit.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a collection of all the accounts,the changes in those accounts,and their balances?

Accepted Answer

A) a source document 
B) a journal 
C) a ledger 
D) a trial balance 
A) a source document 
B) a journal 
C) a ledger 
D) a trial balance

Question 8

The first step in the journalizing and posting process is to ________.

Accepted Answer

A) post the accounts to the ledger 
B) identify each account involved and its type 
C) determine whether each account has increased or decreased 
D) record the transaction in the journal,including a brief explanation 
A) post the accounts to the ledger 
B) identify each account involved and its type 
C) determine whether each account has increased or decreased 
D) record the transaction in the journal,including a brief explanation

Question 9

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

Accepted Answer

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

Question 10

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 11

Liabilities are economic resources that are expected to benefit the business in the future.

Accepted Answer

A) True 
 B)False

Question 12

A business renders services to a customer for $26,000 on account.Which of the following accounts will be debited?

Accepted Answer

A) Cash 
B) Accounts Receivable 
C) Service Revenue 
D) Bank 
A) Cash 
B) Accounts Receivable 
C) Service Revenue 
D) Bank

Question 13

Source documents provide the evidence and data for accounting transactions.

Accepted Answer

A) True 
 B)False

Question 14

Mitchell Florists & Co.reported assets of $1,000 and equity of $350.What is its debt ratio?

Accepted Answer

A) 65% 
B) 35% 
C) 100% 
D) 70% 
A) 65% 
B) 35% 
C) 100% 
D) 70%

Question 15

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

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 16

The following are the current month's balances for Toys Galore Inc.,before preparing the trial balance.   What amount should be shown for Common Stock 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 17

The percentage of assets that are financed with liabilities can be calculated using the ________.

Accepted Answer

A) accounting equation 
B) debt ratio 
C) journal 
D) ledger 
A) accounting equation 
B) debt ratio 
C) journal 
D) ledger

Question 18

A business has the following transactions:   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 19

Unearned revenue is a liability account.

Accepted Answer

A) True 
 B)False

Question 20

In a trial balance,total debits must always equal total credits.

Accepted Answer

A) True 
 B)False

Exam 2: Recording Business Transactions

A business paid cash dividends to shareholders.Which of the following accounts will be debited?

A business makes a cash payment of $12,000 to a creditor.Which of the following accounts will be credited?

Which of the following is the final step in the journalizing and posting process?

Amounts earned from delivering goods or services to customers are called ________.

When is a trial balance usually prepared?

All asset accounts and equity accounts increase with a debit.

Which of the following is a collection of all the accounts,the changes in those accounts,and their balances?

The first step in the journalizing and posting process is to ________.

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

Accountants first record transactions in a ________.

Liabilities are economic resources that are expected to benefit the business in the future.

A business renders services to a customer for $26,000 on account.Which of the following accounts will be debited?

Source documents provide the evidence and data for accounting transactions.

Mitchell Florists & Co.reported assets of $1,000 and equity of $350.What is its debt ratio?

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

The following are the current month's balances for Toys Galore Inc.,before preparing the trial balance. What amount should be shown for Common Stock on the trial balance?

The percentage of assets that are financed with liabilities can be calculated using the ________.

A business has the following transactions: At the end of the month,all journal entries are posted to the ledger.The Accounts Payable account will appear as:

Unearned revenue is a liability account.

In a trial balance,total debits must always equal total credits.

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