Question 1

The following transactions for March have been journalized and posted to the proper accounts.
 
What is the ending balance in the Service Revenue account?

Accepted Answer

A) $16,000 
B) $10,000 
C) $14,000 
D) $6,000 
A) $16,000 
B) $10,000 
C) $14,000 
D) $6,000

Question 2

Which of the following is a liability account?

Accepted Answer

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

Question 3

The Salaries Payable account is a(n)________.

Accepted Answer

A) liability account with a normal debit balance 
B) asset account with a normal debit balance 
C) liability account with a normal credit balance 
D) asset account with a normal credit balance 
A) liability account with a normal debit balance 
B) asset account with a normal debit balance 
C) liability account with a normal credit balance 
D) asset account with a normal credit balance

Question 4

When a business records the earning of service revenue,the Service Revenue account is credited.

Accepted Answer

A) True 
 B)False

Question 5

The accounting process of transferring a transaction from the journal to the ledger is called ________.

Accepted Answer

A) journalizing 
B) posting 
C) compounding 
D) sourcing 
A) journalizing 
B) posting 
C) compounding 
D) sourcing

Question 6

Which one of the following account groups normally has a debit balance?

Accepted Answer

A) assets and expenses 
B) revenues and expenses 
C) liabilities and revenues 
D) assets and liabilities 
A) assets and expenses 
B) revenues and expenses 
C) liabilities and revenues 
D) assets and liabilities

Question 7

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

Accepted Answer

A) Identify the accounts and the account type → Decide whether each account increases or decreases,then apply the rules of debits and credits → Record the transaction 
B) Identify the accounts and the account type → Record the transaction → Decide whether each account increases or decreases,then apply the rules of debits and credits 
C) Record the transaction → Identify the accounts and the account type → Decide whether each account increases or decreases,then apply the rules of debits and credits 
D) Decide whether each account increases or decreases,then apply the rules of debits and credits → Identify the accounts and the account type → Record the transaction 
A) Identify the accounts and the account type → Decide whether each account increases or decreases,then apply the rules of debits and credits → Record the transaction 
B) Identify the accounts and the account type → Record the transaction → Decide whether each account increases or decreases,then apply the rules of debits and credits 
C) Record the transaction → Identify the accounts and the account type → Decide whether each account increases or decreases,then apply the rules of debits and credits 
D) Decide whether each account increases or decreases,then apply the rules of debits and credits → Identify the accounts and the account type → Record the transaction

Question 8

An accounts receivable requires the business to pay cash in the future.

Accepted Answer

A) True 
 B)False

Question 9

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 10

A business pays $500 cash for office supplies.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 11

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

Accepted Answer

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

Question 12

A business makes a cash payment to a supplier for office supplies that were purchased earlier 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 13

For each transaction,identify which account is debited and which account is credited.Use proper account titles.

Accepted Answer

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

Question 14

A liability account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 15

Which one of the following account groups will decrease with a debit?

Accepted Answer

A) assets and expenses 
B) revenues and expenses 
C) liabilities and revenues 
D) assets and liabilities 
A) assets and expenses 
B) revenues and expenses 
C) liabilities and revenues 
D) assets and liabilities

Question 16

A business pays $500 cash for office supplies.Which of the following accounts is credited?

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 17

A business purchases equipment for $8,000 cash.Which of the following accounts is credited?

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Owner,Capital 
D) Equipment 
A) Cash 
B) Accounts Payable 
C) Owner,Capital 
D) Equipment

Question 18

The following are the current month's balances for Toys Galore before preparing the trial balance.
 
What amount should be shown for R.Schwartz,Capital on the trial balance?

Accepted Answer

A) $56,000 
B) $31,000 
C) $11,500 
D) $27,000 
A) $56,000 
B) $31,000 
C) $11,500 
D) $27,000

Question 19

The following are the current month's balances for Jackson Company.
 
Calculate the total amount of credits for the trial balance.

Accepted Answer

A) $24,500 
B) $21,750 
C) $25,750 
D) $33,750 
A) $24,500 
B) $21,750 
C) $25,750 
D) $33,750

Question 20

A business purchases equipment for $8,000 cash.Which of the following accounts is debited?

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Owner,Capital 
D) Equipment 
A) Cash 
B) Accounts Payable 
C) Owner,Capital 
D) Equipment

Exam 2: Recording Business Transactions

The following transactions for March have been journalized and posted to the proper accounts. What is the ending balance in the Service Revenue account?

Which of the following is a liability account?

The Salaries Payable account is a(n)________.

When a business records the earning of service revenue,the Service Revenue account is credited.

The accounting process of transferring a transaction from the journal to the ledger is called ________.

Which one of the following account groups normally has a debit balance?

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

An accounts receivable requires the business to pay cash in the future.

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 pays $500 cash for office supplies.Which of the following accounts is debited?

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

A business makes a cash payment to a supplier for office supplies that were purchased earlier on account.Which of the following accounts is debited?

For each transaction,identify which account is debited and which account is credited.Use proper account titles.

A liability account is increased by a debit.

Which one of the following account groups will decrease with a debit?

A business pays $500 cash for office supplies.Which of the following accounts is credited?

A business purchases equipment for $8,000 cash.Which of the following accounts is credited?

The following are the current month's balances for Toys Galore before preparing the trial balance. What amount should be shown for R.Schwartz,Capital on the trial balance?

The following are the current month's balances for Jackson Company. Calculate the total amount of credits for the trial balance.

A business purchases equipment for $8,000 cash.Which of the following accounts is debited?

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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