Question 1

The entry to record the purchase of offices supplies for cash would be:

Accepted Answer

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

Question 2

The payment for monthly rent of an office building would include a:

Accepted Answer

A)  debit to Cash. 
B)  debit to Prepaid Rent. 
C)  debit to Rent Expense. 
D)  credit to Revenue. 
A)  debit to Cash. 
B)  debit to Prepaid Rent. 
C)  debit to Rent Expense. 
D)  credit to Revenue.

Question 3

A company performs services for a client on account. When the company receives the cash from the customer one month later:

Accepted Answer

A)  a revenue account is increased. 
B)  a liability account is decreased. 
C)  an asset account is increased. 
D)  an expense account is decreased. 
A)  a revenue account is increased. 
B)  a liability account is decreased. 
C)  an asset account is increased. 
D)  an expense account is decreased.

Question 4

If the trial balance does not balance, several steps can be taken to find the error. Which step will probably NOT help you find the error?

Accepted Answer

A)  Tracing each account back and forth from the journal to the ledger 
B)  Divide the out-of-balance amount by 2 
C)  Divide the out-of-balance amount by 9 
D)  Analyzing the financial statements 
A)  Tracing each account back and forth from the journal to the ledger 
B)  Divide the out-of-balance amount by 2 
C)  Divide the out-of-balance amount by 9 
D)  Analyzing the financial statements

Question 5

Which account has a normal debit balance?

Accepted Answer

A)  Salaries payable 
B)  Common Stock 
C)  Advertising Expense 
D)  Service revenue 
A)  Salaries payable 
B)  Common Stock 
C)  Advertising Expense 
D)  Service revenue

Question 6

The account is the basic summary device of accounting.

Accepted Answer

A) True 
 B)False

Question 7

Business managers must often make decisions without the benefit of a complete accounting system.

Accepted Answer

A) True 
 B)False

Question 8

When computing the normal balance of an account:

Accepted Answer

A)  salaries expense should have a credit balance. 
B)  accounts payable should have a credit balance. 
C)  equipment can have either a credit or debit balance. 
D)  notes payable can have either a credit or debit balance. 
A)  salaries expense should have a credit balance. 
B)  accounts payable should have a credit balance. 
C)  equipment can have either a credit or debit balance. 
D)  notes payable can have either a credit or debit balance.

Question 9

Which of the following transactions would decrease an asset and decrease stockholders' equity?

Accepted Answer

A)  The payment of an account payable 
B)  The performance of a service for a client on account 
C)  The borrowing of money from the bank for thirty days 
D)  The declaration and payment of a dividend to the shareholders 
A)  The payment of an account payable 
B)  The performance of a service for a client on account 
C)  The borrowing of money from the bank for thirty days 
D)  The declaration and payment of a dividend to the shareholders

Question 10

A transaction that would include a debit to Cash is:

Accepted Answer

A)  the purchase of supplies on account. 
B)  the payment of an account payable. 
C)  the collection of cash from an account receivable. 
D)  the payment of the monthly utility bill. 
A)  the purchase of supplies on account. 
B)  the payment of an account payable. 
C)  the collection of cash from an account receivable. 
D)  the payment of the monthly utility bill.

Question 11

Assets include cash, land, and accounts payable.

Accepted Answer

A) True 
 B)False

Question 12

The entry to record the purchase of supplies on account would include a debit to:

Accepted Answer

A)  Supplies. 
B)  Accounts Payable. 
C)  Supplies Expense. 
D)  Retained Earnings. 
A)  Supplies. 
B)  Accounts Payable. 
C)  Supplies Expense. 
D)  Retained Earnings.

Question 13

All of the following accounts would be considered assets EXCEPT for:

Accepted Answer

A)  Cash. 
B)  Retained Earnings. 
C)  Prepaid Expenses. 
D)  Notes Receivable. 
A)  Cash. 
B)  Retained Earnings. 
C)  Prepaid Expenses. 
D)  Notes Receivable.

Question 14

Which of the following transactions will increase Stockholders' Equity?

Accepted Answer

A)  The company pays a dividend to its shareholders. 
B)  The company issues common stock to new shareholders. 
C)  The president of the company buys a new personal automobile. 
D)  The company makes a payment on account. 
A)  The company pays a dividend to its shareholders. 
B)  The company issues common stock to new shareholders. 
C)  The president of the company buys a new personal automobile. 
D)  The company makes a payment on account.

Question 15

Complete the following chart indicating if the account is increased with a debit or a credit.

Accepted Answer

The answer of Complete the following chart indicating if the...

Question 16

Put an "X" in the appropriate box to indicate if the normal balance of an account is a Debit or a Credit balance. The first account has been completed for you as an example.

Accepted Answer

The answer of Put an "X" in the appropriate box...

Question 17

The major shareholder of ABC Company purchased a new yacht with his own funds. ABC would:

Accepted Answer

A)  debit an asset account. 
B)  credit a revenue account. 
C)  credit a liability account. 
D)  not record the transaction in their books. 
A)  debit an asset account. 
B)  credit a revenue account. 
C)  credit a liability account. 
D)  not record the transaction in their books.

Question 18

Paying a repair bill as soon as it was received would:

Accepted Answer

A)  increase expenses. 
B)  increase liabilities. 
C)  increase owners' equity. 
D)  decrease revenues. 
A)  increase expenses. 
B)  increase liabilities. 
C)  increase owners' equity. 
D)  decrease revenues.

Question 19

A record of all the changes in a particular asset, liability, or stockholders' equity during a period is called a(n):

Accepted Answer

A)  transaction. 
B)  trial balance. 
C)  journal. 
D)  account. 
A)  transaction. 
B)  trial balance. 
C)  journal. 
D)  account.

Question 20

Goods purchased on account for future use in the business, such as store supplies, are called:

Accepted Answer

A)  accrued liabilities. 
B)  expenses. 
C)  revenues. 
D)  prepaid expenses. 
A)  accrued liabilities. 
B)  expenses. 
C)  revenues. 
D)  prepaid expenses.

The entry to record the purchase of offices supplies for cash would be:

The payment for monthly rent of an office building would include a:

A company performs services for a client on account. When the company receives the cash from the customer one month later:

If the trial balance does not balance, several steps can be taken to find the error. Which step will probably NOT help you find the error?

Which account has a normal debit balance?

The account is the basic summary device of accounting.

Business managers must often make decisions without the benefit of a complete accounting system.

When computing the normal balance of an account:

Which of the following transactions would decrease an asset and decrease stockholders' equity?

A transaction that would include a debit to Cash is:

Assets include cash, land, and accounts payable.

The entry to record the purchase of supplies on account would include a debit to:

All of the following accounts would be considered assets EXCEPT for:

Which of the following transactions will increase Stockholders' Equity?

Complete the following chart indicating if the account is increased with a debit or a credit.

Put an "X" in the appropriate box to indicate if the normal balance of an account is a Debit or a Credit balance. The first account has been completed for you as an example.

The major shareholder of ABC Company purchased a new yacht with his own funds. ABC would:

Paying a repair bill as soon as it was received would:

A record of all the changes in a particular asset, liability, or stockholders' equity during a period is called a(n):

Goods purchased on account for future use in the business, such as store supplies, are called:

The Financial Statements

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets, Natural Resources, Intangibles

Long-Term Investments the Time Value of Money

Liabilities

Stockholders Equity

The Income Statement, the Statement of Comprehensive Income, the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Transaction Analysis

The entry to record the purchase of offices supplies for cash would be:

The payment for monthly rent of an office building would include a:

A company performs services for a client on account. When the company receives the cash from the customer one month later:

If the trial balance does not balance, several steps can be taken to find the error. Which step will probably NOT help you find the error?

Which account has a normal debit balance?

The account is the basic summary device of accounting.

Business managers must often make decisions without the benefit of a complete accounting system.

When computing the normal balance of an account:

Which of the following transactions would decrease an asset and decrease stockholders' equity?

A transaction that would include a debit to Cash is:

Assets include cash, land, and accounts payable.

The entry to record the purchase of supplies on account would include a debit to:

All of the following accounts would be considered assets EXCEPT for:

Which of the following transactions will increase Stockholders' Equity?

Complete the following chart indicating if the account is increased with a debit or a credit.

Put an "X" in the appropriate box to indicate if the normal balance of an account is a Debit or a Credit balance. The first account has been completed for you as an example.

The major shareholder of ABC Company purchased a new yacht with his own funds. ABC would:

Paying a repair bill as soon as it was received would:

A record of all the changes in a particular asset, liability, or stockholders' equity during a period is called a(n):

Goods purchased on account for future use in the business, such as store supplies, are called:

The Financial Statements

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets, Natural Resources, Intangibles

Long-Term Investments the Time Value of Money

Liabilities

Stockholders Equity

The Income Statement, the Statement of Comprehensive Income, the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

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