Question 1

When a business records revenue earned,the Revenue account is credited.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

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

Question 3

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

Accepted Answer

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

Question 4

The following are the current month's balances for Toys Galore Inc.   Calculate the total amount of credits for the trial balance.

Accepted Answer

A) $24,500 
B) $22,750 
C) $24,750 
D) $32,750 
A) $24,500 
B) $22,750 
C) $24,750 
D) $32,750

Question 5

Which of the following is the order of steps to journalize an entry?

Accepted Answer

A) identify each account affected → determine increase or decrease in each account → record the transaction 
B) identify each account affected → record the transaction → determine increase or decrease in each account 
C) record the transaction → identify each account affected → determine increase or decrease in each account 
D) determine increase or decrease in each account → identify each account affected → record the transaction 
A) identify each account affected → determine increase or decrease in each account → record the transaction 
B) identify each account affected → record the transaction → determine increase or decrease in each account 
C) record the transaction → identify each account affected → determine increase or decrease in each account 
D) determine increase or decrease in each account → identify each account affected → record the transaction

Question 6

The trial balance verifies the equality of debits and credits.

Accepted Answer

A) True 
 B)False

Question 7

A payment of an expense in advance is called a prepaid expense.

Accepted Answer

A) True 
 B)False

Question 8

The following transactions for the month of March have been journalized and posted to the proper accounts. Mar, 1 The business received $\$ 9,000$ cash and issued common stock to stockholders.
Mar. 2 Paid the first month's rent of $800.
Mar. 3 Turchasad equipment by paying $3,000 cash and executing a note payable for $5,000.
Mar. 4 Iurchasod Office Supplies for $\$ 750 \mathrm { cash }$.
Mar. 5 Eilled a client for $10,000 of design services completed.
Mar. 6 Received $8,000 on account for the services previously recorded.
- What is the balance in Accounts Receivable?

Accepted Answer

A) $8,000 
B) $2,000 
C) $5,000 
D) $10,000 
A) $8,000 
B) $2,000 
C) $5,000 
D) $10,000

Question 9

Beetles Inc.recorded the following journal entry on March 2,2014: $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 5,000 & \
\hline \text { Unearned Revenue } & & 5,000 \
\hline
\end{array}$$ From the journal entry above,identify the transaction on March 2,2014.

Accepted Answer

A) Beetles purchased goods worth $5,000 and signed a one-year note for the same. 
B) Beetles sold goods for $5,000 cash. 
C) Beetles received $5,000 for services to be performed in a later period. 
D) Beetles paid $5,000 for services to be received at a later date. 
A) Beetles purchased goods worth $5,000 and signed a one-year note for the same. 
B) Beetles sold goods for $5,000 cash. 
C) Beetles received $5,000 for services to be performed in a later period. 
D) Beetles paid $5,000 for services to be received at a later date.

Question 10

Debits in the journal are always posted as debits in the ledger.

Accepted Answer

A) True 
 B)False

Question 11

A liability account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 12

A debit always means a decrease and a credit means increase.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

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

Question 14

When a business makes a cash payment,the Cash account is debited.

Accepted Answer

A) True 
 B)False

When a business records revenue earned,the Revenue account is credited.

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

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

The following are the current month's balances for Toys Galore Inc. Calculate the total amount of credits for the trial balance.

Which of the following is the order of steps to journalize an entry?

The trial balance verifies the equality of debits and credits.

A payment of an expense in advance is called a prepaid expense.

Beetles Inc.recorded the following journal entry on March 2,2014: Cash 5,000 Unearned Revenue 5,000 From the journal entry above,identify the transaction on March 2,2014.

Debits in the journal are always posted as debits in the ledger.

A liability account is increased by a debit.

A debit always means a decrease and a credit means increase.

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

When a business makes a cash payment,the Cash account is debited.

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

Exam 2: Recording Business Transactions

When a business records revenue earned,the Revenue account is credited.

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

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

The following are the current month's balances for Toys Galore Inc. Calculate the total amount of credits for the trial balance.

Which of the following is the order of steps to journalize an entry?

The trial balance verifies the equality of debits and credits.

A payment of an expense in advance is called a prepaid expense.

Beetles Inc.recorded the following journal entry on March 2,2014: Cash 5,000 Unearned Revenue 5,000 From the journal entry above,identify the transaction on March 2,2014.

Debits in the journal are always posted as debits in the ledger.

A liability account is increased by a debit.

A debit always means a decrease and a credit means increase.

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

When a business makes a cash payment,the Cash account is debited.

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