Question 1

Which of the following is NOT part of owners' equity?

Accepted Answer

A)  Bills payable 
B)  Capital 
C)  Accounts receivable 
D)  Both A and C 
A)  Bills payable 
B)  Capital 
C)  Accounts receivable 
D)  Both A and C

Question 2

A business pays $500 cash for supplies.Which account is credited?

Accepted Answer

A)  Service revenue 
B)  Accounts payable 
C)  Cash 
D)  Supplies 
A)  Service revenue 
B)  Accounts payable 
C)  Cash 
D)  Supplies

Question 3

For Accounts payable,the category of account and its normal balance are:

Accepted Answer

A)  Assets and a credit balance. 
B)  Liabilities and a credit balance. 
C)  Owners' equity and a credit balance. 
D)  Assets and a debit balance. 
A)  Assets and a credit balance. 
B)  Liabilities and a credit balance. 
C)  Owners' equity and a credit balance. 
D)  Assets and a debit balance.

Question 4

Beetles Ltd recorded the following journal entry on 2 March 2016:
$$\begin{array} { | l | l | l | } 
\hline \text { Cash } & 6000 & \
\hline \text { Unearned revenue } & & 6000 \
\hline
\end{array}$$
From the journal entry above,identify the transaction on 2 March 2016.

Accepted Answer

A)  Beetles sold goods for $6000 cash. 
B)  Beetles received $6000 for services to be performed in a later period. 
C)  Beetles purchased goods worth $6000 and signed a one-year bill for the same. 
D)  Beetles paid $6000 for services to be received at a later date. 
A)  Beetles sold goods for $6000 cash. 
B)  Beetles received $6000 for services to be performed in a later period. 
C)  Beetles purchased goods worth $6000 and signed a one-year bill for the same. 
D)  Beetles paid $6000 for services to be received at a later date.

Question 5

For Capital,the category of account and its normal balance are:

Accepted Answer

A)  Assets and a debit balance. 
B)  Assets and a credit balance. 
C)  Liabilities and a credit balance. 
D)  Owners' equity and a credit balance. 
A)  Assets and a debit balance. 
B)  Assets and a credit balance. 
C)  Liabilities and a credit balance. 
D)  Owners' equity and a credit balance.

Question 6

A business purchases equipment for cash in the amount of $8 000.Which account is debited?

Accepted Answer

A)  Cash 
B)  Accounts payable 
C)  Equipment 
D)  Supplies expense 
A)  Cash 
B)  Accounts payable 
C)  Equipment 
D)  Supplies expense

Question 7

When is a trial balance usually prepared?

Accepted Answer

A)  After financial statements are published 
B)  After balancing the ledger accounts 
C)  After each entry is journalised 
D)  At the beginning of an accounting period 
A)  After financial statements are published 
B)  After balancing the ledger accounts 
C)  After each entry is journalised 
D)  At the beginning of an accounting period

Question 8

The following are the current month's balances for Toys Galore:
$$\begin{array} { | l | l | } 
\hline \text { Accounts payable } & \$ 9000 \
\hline \text { Revenue } & 12,000 \
\hline \text { Cash } & 3000 \
\hline \text { Expenses } & 1400 \
\hline \text { Furniture } & 14,000 \
\hline \text { Accounts receivable } & 13,000 \
\hline \text { Iones, capital } & 7250 \
\hline \text { Loan payable } & 4500 \
\hline
\end{array}$$
What is the profit for Toys Galore for the current month?

Accepted Answer

A)  $13,400 
B)  $10,600 
C)  $15,000 
D)  $12,000 
A)  $13,400 
B)  $10,600 
C)  $15,000 
D)  $12,000

Question 9

Which of the following accounts decreases with a credit?

Accepted Answer

A)  Cash 
B)  Bills payable 
C)  Accounts payable 
D)  Capital 
A)  Cash 
B)  Bills payable 
C)  Accounts payable 
D)  Capital

Question 10

A business makes a payment of $1440 on a loan payable,consisting of a $110 interest payment and a $1330 principal payment.Which of the following journal entries would be recorded?

Accepted Answer

A)  Loan payable is credited for $1330, Cash is credited for $110 and Interest expense is debited for $1440. 
B)  Cash is credited for $1440, Loan payable is debited for $1330 and Interest expense is debited for $110. 
C)  Loan payable is credited for $1440, Cash is debited for $1330 and Interest expense is debited for $110. 
D)  Cash is credited for $1330, Interest expense is credited for $110 and Loan payable is debited for $1440. 
A)  Loan payable is credited for $1330, Cash is credited for $110 and Interest expense is debited for $1440. 
B)  Cash is credited for $1440, Loan payable is debited for $1330 and Interest expense is debited for $110. 
C)  Loan payable is credited for $1440, Cash is debited for $1330 and Interest expense is debited for $110. 
D)  Cash is credited for $1330, Interest expense is credited for $110 and Loan payable is debited for $1440.

Question 11

Accountants first record transactions in the:

Accepted Answer

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

Question 12

A journal entry includes BOTH debit and credit amounts.

Accepted Answer

A) True 
 B)False

Question 13

The following transactions for the month of March have been journalised and posted to the proper accounts.
Mar 1 Martinez invested $7000 cash in his new design services business.
Mar 2 Paid the first month's rent of $600.
Mar 3 Purchased equipment by paying $3000 cash and executing a loan payable for $3000.
Mar 4 Purchased office supplies for $550 cash.
Mar 5 Billed a client for $10,000 of design services completed.
Mar 6 Received $8000 on account for the services previously recorded.
What is the balance in Accounts receivable?

Accepted Answer

A)  $2000 
B)  $10,000 
C)  $3000 
D)  $8000 
A)  $2000 
B)  $10,000 
C)  $3000 
D)  $8000

Question 14

Journalising a transaction means:

Accepted Answer

A)  recording the transaction, including a brief explanation. 
B)  calculating the balance in an account. 
C)  copying the information from the journal to the ledger. 
D)  finding the account number in the chart of accounts. 
A)  recording the transaction, including a brief explanation. 
B)  calculating the balance in an account. 
C)  copying the information from the journal to the ledger. 
D)  finding the account number in the chart of accounts.

Question 15

Which of the following journal entries would be recorded if a business purchased $200 in supplies on credit?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 200 & \
\hline \text { Supplies } & & 200 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Supplies } & 200 & \
\hline \text { Cash } & & 200 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts payable } & 200 & \
\hline \text { Supplies } & & 200 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Supplies } & 200 & \
\hline \text { Accounts payable } & & 200 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 200 & \
\hline \text { Supplies } & & 200 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Supplies } & 200 & \
\hline \text { Cash } & & 200 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts payable } & 200 & \
\hline \text { Supplies } & & 200 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Supplies } & 200 & \
\hline \text { Accounts payable } & & 200 \
\hline
\end{array}$$

Which of the following is NOT part of owners' equity?

A business pays $500 cash for supplies.Which account is credited?

For Accounts payable,the category of account and its normal balance are:

Beetles Ltd recorded the following journal entry on 2 March 2016: Cash 6000 Unearned revenue 6000 From the journal entry above,identify the transaction on 2 March 2016.

For Capital,the category of account and its normal balance are:

A business purchases equipment for cash in the amount of $8 000.Which account is debited?

When is a trial balance usually prepared?

The following are the current month's balances for Toys Galore: Accounts payable \ 9000 Revenue 12,000 Cash 3000 Expenses 1400 Furniture 14,000 Accounts receivable 13,000 Iones, capital 7250 Loan payable 4500 What is the profit for Toys Galore for the current month?

Which of the following accounts decreases with a credit?

A business makes a payment of $1440 on a loan payable,consisting of a $110 interest payment and a $1330 principal payment.Which of the following journal entries would be recorded?

Accountants first record transactions in the:

A journal entry includes BOTH debit and credit amounts.

Journalising a transaction means:

Which of the following journal entries would be recorded if a business purchased $200 in supplies on credit?

The Role of Accounting in Decision Making

The Adjusting Process

Completing the Accounting Cycle

Retailing Operations

Retail Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Non-Current Assets: Property, plant and Equipment, and Intangibles

Current Liabilities and Payroll

Non-Current Liabilities,debentures Payable and Classification of Liabilities on the Balance Sheet

Partnerships

Companies: Formation and Shareholders Equity

Companies: Capital Management and the Income Statement

The Cash Flow Statement

The Framework of Accounting

Financial Statement Analysis

Introduction to Managerial Accounting and the Master Budget

Job Costing

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

Filters

Exam 2: Recording Business Transactions

Which of the following is NOT part of owners' equity?

A business pays $500 cash for supplies.Which account is credited?

For Accounts payable,the category of account and its normal balance are:

Beetles Ltd recorded the following journal entry on 2 March 2016: Cash 6000 Unearned revenue 6000 From the journal entry above,identify the transaction on 2 March 2016.

For Capital,the category of account and its normal balance are:

A business purchases equipment for cash in the amount of $8 000.Which account is debited?

When is a trial balance usually prepared?

The following are the current month's balances for Toys Galore: Accounts payable \ 9000 Revenue 12,000 Cash 3000 Expenses 1400 Furniture 14,000 Accounts receivable 13,000 Iones, capital 7250 Loan payable 4500 What is the profit for Toys Galore for the current month?

Which of the following accounts decreases with a credit?

A business makes a payment of $1440 on a loan payable,consisting of a $110 interest payment and a $1330 principal payment.Which of the following journal entries would be recorded?

Accountants first record transactions in the:

A journal entry includes BOTH debit and credit amounts.

Journalising a transaction means:

Which of the following journal entries would be recorded if a business purchased $200 in supplies on credit?

The Role of Accounting in Decision Making

The Adjusting Process

Completing the Accounting Cycle

Retailing Operations

Retail Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Non-Current Assets: Property, plant and Equipment, and Intangibles

Current Liabilities and Payroll

Non-Current Liabilities,debentures Payable and Classification of Liabilities on the Balance Sheet

Partnerships

Companies: Formation and Shareholders Equity

Companies: Capital Management and the Income Statement

The Cash Flow Statement

The Framework of Accounting

Financial Statement Analysis

Introduction to Managerial Accounting and the Master Budget

Job Costing

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

Filters