Question 1

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 2

Debit refers to the right side of the T-account,and credit refers to the left side.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

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

Question 4

Debits in the journal are always posted as debits in the ledger.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) A trial balance is the first step in the accounting cycle. 
B) A trial balance is also known as a balance sheet. 
C) A trial balance is a list of all accounts with their balances. 
D) A trial balance is also known as the chart of accounts. 
A) A trial balance is the first step in the accounting cycle. 
B) A trial balance is also known as a balance sheet. 
C) A trial balance is a list of all accounts with their balances. 
D) A trial balance is also known as the chart of accounts.

Question 6

The trial balance reports the balances of assets,liabilities,and equity.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is an asset account?

Accepted Answer

A) Wages Payable 
B) Notes Payable 
C) Unearned Revenue 
D) Accounts Receivable 
A) Wages Payable 
B) Notes Payable 
C) Unearned Revenue 
D) Accounts Receivable

Question 8

Camile Plastics Company had the following total assets,liabilities,and equity as of December 31.
 
What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places. )

Accepted Answer

A) 30.93% 
B) 69.07% 
C) 100.00% 
D) 44.78% 
A) 30.93% 
B) 69.07% 
C) 100.00% 
D) 44.78%

Question 9

A T-account is a summary device with credits posted on the left side of the vertical line.

Accepted Answer

A) True 
 B)False

Question 10

A debit always means a decrease,and a credit always means an increase.

Accepted Answer

A) True 
 B)False

Question 11

The Owner's Capital account is a separate account in the ________ category of the accounting equation.

Accepted Answer

A) equity 
B) asset 
C) liability 
D) revenue 
A) equity 
B) asset 
C) liability 
D) revenue

Question 12

Which of the following is a liability account?

Accepted Answer

A) Service Revenue 
B) Building 
C) Accounts Receivable 
D) Unearned Revenue 
A) Service Revenue 
B) Building 
C) Accounts Receivable 
D) Unearned Revenue

Question 13

Posting a transaction means ________.

Accepted Answer

A) calculating the balance in an account 
B) transferring data from the journal to the ledger 
C) preparing a summary of account balances 
D) finding the account number in the chart of accounts 
A) calculating the balance in an account 
B) transferring data from the journal to the ledger 
C) preparing a summary of account balances 
D) finding the account number in the chart of accounts

Question 14

Sharon Foods Company reported the following transactions for September 2017.
A.The business received a $21,000 cash contribution from the owner.It was credited to Sharon,Capital.
B.The business purchased office equipment for $9,000 for which $4,000 cash was paid and the balance was put on a note payable.
C.Paid insurance expense of $1,500 cash.
D.Paid the September utility bill for $800 cash.
E.Paid $1,600 cash for September rent.
F.The business had sales of $12,000 in September.Of these sales,40% were cash sales,and the balance was credit sales.
G.The business paid $8,000 cash for office furniture.
What are the total liabilities at the end of September,2017?

Accepted Answer

A) $12,000 
B) $1,500 
C) $5,000 
D) $9,000 
A) $12,000 
B) $1,500 
C) $5,000 
D) $9,000

Question 15

Whitney Chemicals Company received cash contribution of $40,000 from the owner of the business.Which of the following accounts will be credited?

Accepted Answer

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

Question 16

Beetles Company recorded the following journal entry on March 2,2016.
 
From the journal entry above,identify the transaction on March 2,2016.

Accepted Answer

A) Beetles purchased goods worth $10,500 and signed a one-year note for the same. 
B) Beetles sold goods for $10,500 cash. 
C) Beetles received $10,500 for services to be performed in a later period. 
D) Beetles paid $10,500 for services to be received at a later date. 
A) Beetles purchased goods worth $10,500 and signed a one-year note for the same. 
B) Beetles sold goods for $10,500 cash. 
C) Beetles received $10,500 for services to be performed in a later period. 
D) Beetles paid $10,500 for services to be received at a later date.

Question 17

The higher the debt ratio,the lower the risk.

Accepted Answer

A) True 
 B)False

Question 18

Stewart Candle Company received a cash contribution of $40,000 from the owner of the business.Which of the following accounts will be debited?

Accepted Answer

A) Accounts Receivable 
B) Cash 
C) Stewart,Capital 
D) Accounts Payable 
A) Accounts Receivable 
B) Cash 
C) Stewart,Capital 
D) Accounts Payable

Question 19

A business makes a payment in cash for advertising expense.Which of the following accounts is credited?

Accepted Answer

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

Question 20

Nuptial Services Company paid the rent for the current month in cash.Which of the following accounts will be used to record the transaction?

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

Exam 2: Recording Business Transactions

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

Debit refers to the right side of the T-account,and credit refers to the left side.

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

Debits in the journal are always posted as debits in the ledger.

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

The trial balance reports the balances of assets,liabilities,and equity.

Which of the following is an asset account?

Camile Plastics Company had the following total assets,liabilities,and equity as of December 31. What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places. )

A T-account is a summary device with credits posted on the left side of the vertical line.

A debit always means a decrease,and a credit always means an increase.

The Owner's Capital account is a separate account in the ________ category of the accounting equation.

Which of the following is a liability account?

Posting a transaction means ________.

Whitney Chemicals Company received cash contribution of $40,000 from the owner of the business.Which of the following accounts will be credited?

Beetles Company recorded the following journal entry on March 2,2016. From the journal entry above,identify the transaction on March 2,2016.

The higher the debt ratio,the lower the risk.

Stewart Candle Company received a cash contribution of $40,000 from the owner of the business.Which of the following accounts will be debited?

A business makes a payment in cash for advertising expense.Which of the following accounts is credited?

Nuptial Services Company paid the rent for the current month in cash.Which of the following accounts will be used to record the transaction?

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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