Question 1

The normal balance of an account is the increase side of the account.

Accepted Answer

A) True 
 B)False

Question 2

The balances in the liability and revenue accounts are increased with a credit.

Accepted Answer

A) True 
 B)False

Question 3

A trial balance is the list of only a company's debit accounts along with their account numbers at a point in time.

Accepted Answer

A) True 
 B)False

Question 4

Liabilities are economic resources that are expected to benefit the business in the future.

Accepted Answer

A) True 
 B)False

Question 5

When using a four-column account,the posting reference column allows the user of the financial data to trace the amounts in the journal back to the ledger.

Accepted Answer

A) True 
 B)False

Question 6

The trial balance is also known as the balance sheet.

Accepted Answer

A) True 
 B)False

Question 7

Melody Instruments Company sells musical instruments.On December 31,2017,after its first month of business,Melody Instruments had the following balances in its accounts,listed alphabetically.
   
Determine the balance in the cash account and prepare the trial balance.

Accepted Answer

In the given problem,the cash

Question 8

Journalizing a transaction involves ________.

Accepted Answer

A) calculating the balance in an account using journal entries 
B) posting the account balances in the chart of accounts 
C) preparing a summary of account balances 
D) recording the data only in the journal 
A) calculating the balance in an account using journal entries 
B) posting the account balances in the chart of accounts 
C) preparing a summary of account balances 
D) recording the data only in the journal

Question 9

Which of the following journal entries would be recorded if a business purchased $800 of office supplies on account?

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

The ability of a company to repay its liabilities can be determined from its ________.

Accepted Answer

A) bankers 
B) creditors 
C) debt ratio 
D) journal 
A) bankers 
B) creditors 
C) debt ratio 
D) journal

Question 12

Which of the following journal entries would be recorded if a business renders service and receives cash of $900 from the customer?

Accepted Answer

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

Question 13

At the end of a month,a business shows the following balances in its ledger.   
Use this data to prepare a trial balance.

Accepted Answer

The answer of At the end of a month,a business...

Question 14

Data from a trial balance is used to prepare the income statement,statement of owner's equity,and the balance sheet.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following journal entries would be recorded if Christy Jones Company received a $3,000 cash contribution from the owner?

Accepted Answer

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

Question 16

The following transactions for the month of March have been journalized and posted to the proper accounts.
 
What is the balance in Accounts Receivable?

Accepted Answer

A) $8,000 
B) $2,000 
C) $5,000 
D) $10,000 
A) $8,000 
B) $2,000 
C) $5,000 
D) $10,000

Question 17

When a business makes a cash payment,the Cash account is debited.

Accepted Answer

A) True 
 B)False

Question 18

A business renders services to its customer for $50,000 on account.Record the transaction in the journal.

Accepted Answer

The answer of A business renders services to its customer...

Question 19

Source documents provide the evidence and data for accounting transactions.

Accepted Answer

A) True 
 B)False

Question 20

A business renders services to a client and issues a sales invoice.The amount will be collected from the customer at a later time.Which of the following is true at the time the invoice is issued?

Accepted Answer

A) Equity will decrease. 
B) Total liabilities will increase. 
C) Total assets will decrease. 
D) Net income will increase. 
A) Equity will decrease. 
B) Total liabilities will increase. 
C) Total assets will decrease. 
D) Net income will increase.

Exam 2: Recording Business Transactions

The normal balance of an account is the increase side of the account.

The balances in the liability and revenue accounts are increased with a credit.

A trial balance is the list of only a company's debit accounts along with their account numbers at a point in time.

Liabilities are economic resources that are expected to benefit the business in the future.

When using a four-column account,the posting reference column allows the user of the financial data to trace the amounts in the journal back to the ledger.

The trial balance is also known as the balance sheet.

Melody Instruments Company sells musical instruments.On December 31,2017,after its first month of business,Melody Instruments had the following balances in its accounts,listed alphabetically. Determine the balance in the cash account and prepare the trial balance.

Journalizing a transaction involves ________.

Which of the following journal entries would be recorded if a business purchased $800 of office supplies on account?

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

The ability of a company to repay its liabilities can be determined from its ________.

Which of the following journal entries would be recorded if a business renders service and receives cash of $900 from the customer?

At the end of a month,a business shows the following balances in its ledger. Use this data to prepare a trial balance.

Data from a trial balance is used to prepare the income statement,statement of owner's equity,and the balance sheet.

Which of the following journal entries would be recorded if Christy Jones Company received a $3,000 cash contribution from the owner?

The following transactions for the month of March have been journalized and posted to the proper accounts. What is the balance in Accounts Receivable?

When a business makes a cash payment,the Cash account is debited.

A business renders services to its customer for $50,000 on account.Record the transaction in the journal.

Source documents provide the evidence and data for accounting transactions.

A business renders services to a client and issues a sales invoice.The amount will be collected from the customer at a later time.Which of the following is true at the time the invoice is issued?

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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