Question 1

Source documents provide the evidence and data for accounting transactions.

Accepted Answer

A) True 
 B)False

Question 2

For each transaction, identify which account is debited and which account is credited. Use proper account titles.
 $$\begin{array} { | l | l | l | } 
\hline  { \text { Transaction } } & \text { Debit } & \text { Credit } \
\hline \text { Received a bill for utilities to be } & & \
\text { paid next month } & & \
\hline \text { Performed services on account } & & \
\hline \text { Paid cash for a 12-month } & & \
\text { insurance policy, coverage } & & \
\text { tarting next month } & & \
\hline \text { Paid rent for the current month } & & \
\hline \text { Borrowed cash from the bank for } & & \
\text { business use; a note was signed } & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each transaction, identify which account is...

Question 3

Which of the following statements is true of a trial balance?

Accepted Answer

A)  A trial balance has the same format as a balance sheet. 
B)  A trial balance presents data in debit and credit format. 
C)  A trial balance shows the total amounts of assets and liabilities, but not equity. 
D)  A trial balance is prepared after the balance sheet. 
A)  A trial balance has the same format as a balance sheet. 
B)  A trial balance presents data in debit and credit format. 
C)  A trial balance shows the total amounts of assets and liabilities, but not equity. 
D)  A trial balance is prepared after the balance sheet.

Question 4

Converse Florists & Co. reported assets of $1,000 and equity of $450. What is its debt ratio? (Round your percentage answer to two decimal places.)

Accepted Answer

A)  55.00% 
B)  45.00% 
C)  100.00% 
D)  60.00% 
A)  55.00% 
B)  45.00% 
C)  100.00% 
D)  60.00%

Question 5

List the five steps of the journalizing and posting process.

Accepted Answer

1. Identify the accounts and the account

Question 6

A business purchases $3,500 of office supplies for cash. Which of the following sets of ledger accounts reflects the posting of this transaction?

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 7

Durable Plastics Company had the following total assets, liabilities, and equity as of December 31. $$\begin{array} { | l | r | } 
\hline \text { Total Assets } & \$ 430,000 \
\hline \text { Total Liabilities } & 131,000 \
\hline \text { Total Equity } & 299,000 \
\hline
\end{array}$$ What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places.)

Accepted Answer

A)  30.47% 
B)  69.53% 
C)  100.00% 
D)  43.81% 
A)  30.47% 
B)  69.53% 
C)  100.00% 
D)  43.81%

Question 8

A chart of accounts is a detailed record of the changes in a particular asset, liability, or equity account during a specified period.

Accepted Answer

A) True 
 B)False

Question 9

A business repays the amount borrowed on a note with cash. Which of the following accounts is 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 10

After posting the journal entries from the journal to the ledger, the accounting equation should be in balance.

Accepted Answer

A) True 
 B)False

Question 11

The left side of the T-account for Accounts Receivable is the debit side and the left side of the T-account for Accounts Payable is the credit side.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the correct formula to calculate the debt ratio?

Accepted Answer

A)  Debt ratio = Total liabilities × Total assets 
B)  Debt ratio = Total liabilities + Total assets 
C)  Debt ratio = Total liabilities - Total assets 
D)  Debt ratio = Total liabilities / Total assets 
A)  Debt ratio = Total liabilities × Total assets 
B)  Debt ratio = Total liabilities + Total assets 
C)  Debt ratio = Total liabilities - Total assets 
D)  Debt ratio = Total liabilities / Total assets

Question 13

At the end of a month, a business shows the following balances in its ledger.
   Use this data to prepare a trial balance.

Accepted Answer

Trial Ealarce
Last Day of the Month \[\b

Question 14

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 15

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

Accepted Answer

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

Question 16

The account title used for recording a written promise that a customer will pay the business a fixed amount of money and interest by a certain date in the future is ________.

Accepted Answer

A)  Prepaid Note 
B)  Notes Payable 
C)  Notes Receivable 
D)  Accounts Receivable 
A)  Prepaid Note 
B)  Notes Payable 
C)  Notes Receivable 
D)  Accounts Receivable

Question 17

A business purchases equipment by paying $6,276 in cash and issuing a note payable of $19,177. Which of the following occurs?

Accepted Answer

A)  Cash is credited for $6,276, Equipment is credited for $25,453, and Notes Payable is debited for $19,177. 
B)  Cash is credited for $6,276, Equipment is debited for $25,453, and Notes Payable is credited for $19,177. 
C)  Cash is debited for $6,276, Equipment is debited for $19,177,and Notes Payable is credited for $25,453. 
D)  Cash is debited for $6,276, Equipment is credited for $19,177, and Notes Payable is debited for $12,901. 
A)  Cash is credited for $6,276, Equipment is credited for $25,453, and Notes Payable is debited for $19,177. 
B)  Cash is credited for $6,276, Equipment is debited for $25,453, and Notes Payable is credited for $19,177. 
C)  Cash is debited for $6,276, Equipment is debited for $19,177,and Notes Payable is credited for $25,453. 
D)  Cash is debited for $6,276, Equipment is credited for $19,177, and Notes Payable is debited for $12,901.

Question 18

The process of transferring data from the ledger to the journal is called posting.

Accepted Answer

A) True 
 B)False

Question 19

In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the total increases are $5,200 and the total decreases are $2,400. This means that the ending balance of the account is a credit balance of $2,800.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 2: Recording Business Transactions

Source documents provide the evidence and data for accounting transactions.

Which of the following statements is true of a trial balance?

Converse Florists & Co. reported assets of $1,000 and equity of $450. What is its debt ratio? (Round your percentage answer to two decimal places.)

List the five steps of the journalizing and posting process.

A business purchases $3,500 of office supplies for cash. Which of the following sets of ledger accounts reflects the posting of this transaction?

Durable Plastics Company had the following total assets, liabilities, and equity as of December 31. Total Assets \ 430,000 Total Liabilities 131,000 Total Equity 299,000 What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places.)

A chart of accounts is a detailed record of the changes in a particular asset, liability, or equity account during a specified period.

A business repays the amount borrowed on a note with cash. Which of the following accounts is credited?

After posting the journal entries from the journal to the ledger, the accounting equation should be in balance.

The left side of the T-account for Accounts Receivable is the debit side and the left side of the T-account for Accounts Payable is the credit side.

Which of the following is the correct formula to calculate the debt ratio?

At the end of a month, a business shows the following balances in its ledger. Use this data to prepare a trial balance.

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

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

The account title used for recording a written promise that a customer will pay the business a fixed amount of money and interest by a certain date in the future is ________.

A business purchases equipment by paying $6,276 in cash and issuing a note payable of $19,177. Which of the following occurs?

The process of transferring data from the ledger to the journal is called posting.

In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the total increases are $5,200 and the total decreases are $2,400. This means that the ending balance of the account is a credit balance of $2,800.

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

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

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

Understanding Accounting Information Systems and their Components

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