Question 1

The account title used for recording the payment of rent in advance for an office building is ________.

Accepted Answer

A) Prepaid Rent 
B) Rent Payable 
C) Rent Revenue 
D) Rent Expense 
A) Prepaid Rent 
B) Rent Payable 
C) Rent Revenue 
D) Rent Expense A

Question 2

Which of the following journal entries would be recorded if a business purchased office supplies on account in a previous accounting period and now makes a cash payment of $750 to the supplier to settle the account?

Accepted Answer

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

Question 3

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 B

Question 4

Mitchell Florists reported assets of $1,400 and equity of $350.What is its debt ratio? (Round your percentage answer to two decimal places. )

Accepted Answer

A) 75.00% 
B) 25.00% 
C) 100.00% 
D) 80.00% 
A) 75.00% 
B) 25.00% 
C) 100.00% 
D) 80.00%

Question 5

The following are the current month's balances for Global Enterprises.
 
What is the total amount of debits for the trial balance?

Accepted Answer

A) $26,000 
B) $27,600 
C) $32,000 
D) $33,600 
A) $26,000 
B) $27,600 
C) $32,000 
D) $33,600

Question 6

A liability created when a business collects cash from customers in advance of providing services or delivering goods is called a(n)________.

Accepted Answer

A) notes receivable 
B) unearned revenue 
C) accrued liability 
D) service revenue 
A) notes receivable 
B) unearned revenue 
C) accrued liability 
D) service revenue

Question 7

Which of the following statements is true of the Owner's Capital account?

Accepted Answer

A) It is an equity account that has a normal credit balance. 
B) It is a liability account that has a normal credit balance. 
C) It is a liability account that has a normal debit balance. 
D) It is an equity account that has a normal debit balance. 
A) It is an equity account that has a normal credit balance. 
B) It is a liability account that has a normal credit balance. 
C) It is a liability account that has a normal debit balance. 
D) It is an equity account that has a normal debit balance.

Question 8

Balancing errors can be detected by computing the difference between total debits and total credits on the trial balance.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an asset account?

Accepted Answer

A) Salaries Expense 
B) Accounts Payable 
C) Service Revenue 
D) Prepaid Expense 
A) Salaries Expense 
B) Accounts Payable 
C) Service Revenue 
D) Prepaid Expense

Question 10

In a computerized environment,the posting process is completed automatically when the user enters the journal entry.

Accepted Answer

A) True 
 B)False

Question 11

A business collects cash from a customer for services that were performed one month earlier.Which of the following accounts is debited?

Accepted Answer

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

Question 12

When a business collects cash,the Cash account is debited.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

A chart of accounts is a list of all of a company's accounts with their account numbers.

Accepted Answer

A) True 
 B)False

Question 15

An asset account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is the record holding all the accounts,the changes in those accounts,and their balances?

Accepted Answer

A) Source document 
B) Journal 
C) Ledger 
D) Trial balance 
A) Source document 
B) Journal 
C) Ledger 
D) Trial balance

Question 17

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 18

A business purchases $500 of office supplies on account.Which of the following accounts is debited?

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Office Supplies 
D) Utilities Expense 
A) Cash 
B) Accounts Payable 
C) Office Supplies 
D) Utilities Expense

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A business purchased land for $250,000 cash.Record the transaction in the journal.

Accepted Answer

The answer of A business purchased land for $250,000 cash.Record...

Exam 2: Recording Business Transactions

The account title used for recording the payment of rent in advance for an office building is ________.

Which of the following journal entries would be recorded if a business purchased office supplies on account in a previous accounting period and now makes a cash payment of $750 to the supplier to settle the account?

When is a trial balance usually prepared?

Mitchell Florists reported assets of $1,400 and equity of $350.What is its debt ratio? (Round your percentage answer to two decimal places. )

The following are the current month's balances for Global Enterprises. What is the total amount of debits for the trial balance?

A liability created when a business collects cash from customers in advance of providing services or delivering goods is called a(n)________.

Which of the following statements is true of the Owner's Capital account?

Balancing errors can be detected by computing the difference between total debits and total credits on the trial balance.

Which of the following is an asset account?

In a computerized environment,the posting process is completed automatically when the user enters the journal entry.

A business collects cash from a customer for services that were performed one month earlier.Which of the following accounts is debited?

When a business collects cash,the Cash account is debited.

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

A chart of accounts is a list of all of a company's accounts with their account numbers.

An asset account is increased by a debit.

Which of the following is the record holding all the accounts,the changes in those accounts,and their balances?

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

A business purchases $500 of office supplies on account.Which of the following accounts is debited?

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

A business purchased land for $250,000 cash.Record the transaction in the journal.

Accounting and the Business Environment

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

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