Question 1

A business makes a cash payment of $12,000 to a supplier for supplies purchased two weeks earlier.Which of the following accounts is debited?

Accepted Answer

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

Question 2

An account that normally has a debit balance may occasionally have a credit balance.

Accepted Answer

A) True 
 B)False

Question 3

When a business records an accrued utility liability,the Utilities Expense account is credited.

Accepted Answer

A) True 
 B)False

Question 4

Revenues and contributions of the owner in the business increase equity.

Accepted Answer

A) True 
 B)False

Question 5

Unearned revenue is a liability account.

Accepted Answer

A) True 
 B)False

Question 6

A business makes a cash payment of $12,000 to a creditor.Which of the following accounts is credited?

Accepted Answer

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

Question 7

A shortened form of the ledger is called a ________.

Accepted Answer

A) trial balance 
B) balance sheet 
C) chart of accounts 
D) T-account 
A) trial balance 
B) balance sheet 
C) chart of accounts 
D) T-account

Question 8

The Owner's Capital account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is the final step in the journalizing and posting process?

Accepted Answer

A) Posting the accounts to the ledger. 
B) Identifying each account affected and its type. 
C) Determining whether the accounting equation is in balance. 
D) Determining whether each account has increased or decreased. 
A) Posting the accounts to the ledger. 
B) Identifying each account affected and its type. 
C) Determining whether the accounting equation is in balance. 
D) Determining whether each account has increased or decreased.

Question 10

Which of the following accounts decreases with a debit?

Accepted Answer

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

Question 11

A business has the following transactions:
* The business received $16,000 cash and issued common stock to stockholders.
* The business purchases $600 of office supplies on account.
* The business purchases $3,000 of furniture on account.
* The business renders services to various clients totaling $10,000 on account.
* The business pays out $1,500 for salaries expense and $3,500 for rent expense.
* The business pays $800 to supplier for the office supplies purchased earlier.
* The business collects $4,000 from one of its clients for services rendered earlier in the month.
At the end of the month,all journal entries are posted to the ledger.Accounts Payable will appear as which of the following?

Accepted Answer

A)  Accounts Payable
  
B)  Accounts Payable
  
C)  Accounts Payable
  
D)  Accounts Payable
  
A)  Accounts Payable
  
B)  Accounts Payable
  
C)  Accounts Payable
  
D)  Accounts Payable

Question 12

A business renders services to a customer for $26,000 on account.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 13

A business borrows cash by signing a note payable.Which of the following accounts is debited?

Accepted Answer

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

Question 14

"All debits are increases and all credits are decreases." Is this a correct statement? Explain your answer.

Accepted Answer

This is not a correct statement.The doub

Question 15

A trial balance summarizes the ledger by listing all the accounts with their balances at a point in time.

Accepted Answer

A) True 
 B)False

Question 16

After posting the journal entries from the journal to the ledger,the accounting equation should be in balance.

Accepted Answer

A) True 
 B)False

Question 17

The owner withdrew cash from the business.Which of the following accounts is debited?

Accepted Answer

A) Cash 
B) Owner,Withdrawals 
C) Accounts Payable 
D) Common Stock 
A) Cash 
B) Owner,Withdrawals 
C) Accounts Payable 
D) Common Stock

Question 18

A business paid salaries of $6,000 in cash.Record the transaction in the journal.

Accepted Answer

The answer of A business paid salaries of $6,000 in...

Question 19

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

Accepted Answer

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

Question 20

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...

Exam 2: Recording Business Transactions

A business makes a cash payment of $12,000 to a supplier for supplies purchased two weeks earlier.Which of the following accounts is debited?

An account that normally has a debit balance may occasionally have a credit balance.

When a business records an accrued utility liability,the Utilities Expense account is credited.

Revenues and contributions of the owner in the business increase equity.

Unearned revenue is a liability account.

A business makes a cash payment of $12,000 to a creditor.Which of the following accounts is credited?

A shortened form of the ledger is called a ________.

The Owner's Capital account is increased by a debit.

Which of the following is the final step in the journalizing and posting process?

Which of the following accounts decreases with a debit?

A business renders services to a customer for $26,000 on account.Which of the following accounts is debited?

A business borrows cash by signing a note payable.Which of the following accounts is debited?

"All debits are increases and all credits are decreases." Is this a correct statement? Explain your answer.

A trial balance summarizes the ledger by listing all the accounts with their balances at a point in time.

After posting the journal entries from the journal to the ledger,the accounting equation should be in balance.

The owner withdrew cash from the business.Which of the following accounts is debited?

A business paid salaries of $6,000 in cash.Record the transaction in the journal.

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

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

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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