Question 1

Which of the following is provided in a typical chart of accounts?

Accepted Answer

A) Account balance 
B) Account number 
C) Dates of transactions 
D) Transaction amounts 
A) Account balance 
B) Account number 
C) Dates of transactions 
D) Transaction amounts

Question 2

For Expenses,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 3

Owner's Withdrawals is a(n)________ account that has a normal ________ balance.

Accepted Answer

A) liability;credit 
B) equity;debit 
C) liability;debit 
D) equity;credit 
A) liability;credit 
B) equity;debit 
C) liability;debit 
D) equity;credit

Question 4

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

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 5

Which of the following is an asset account?

Accepted Answer

A) Cash 
B) Notes Payable 
C) Dividends 
D) Unearned Revenue 
A) Cash 
B) Notes Payable 
C) Dividends 
D) Unearned Revenue

Question 6

The trial balance is an internal document used only by employees of the company.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following accounts decreases with a credit?

Accepted Answer

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

Question 8

The T-account is a summary device that is shaped like a capital T with debits posted on the left side of the vertical line and credits posted on the right side of the vertical line.

Accepted Answer

A) True 
 B)False

Question 9

The Accounts Payable account of Golden Company has the following postings:  
Calculate the ending balance of the account.

Accepted Answer

A) $12,000 credit 
B) $16,000 debit 
C) $16,000 credit 
D) $6,000 debit 
A) $12,000 credit 
B) $16,000 debit 
C) $16,000 credit 
D) $6,000 debit

Question 10

The trial balance verifies the equality of debits and credits at a point in time.

Accepted Answer

A) True 
 B)False

Question 11

A payable involves a future receipt of cash.

Accepted Answer

A) True 
 B)False

Question 12

For Owner's Capital,the category of account and its normal balance is ________.

Accepted Answer

A) equity and a credit balance 
B) assets and a debit balance 
C) equity and a debit balance 
D) assets and a credit balance 
A) equity and a credit balance 
B) assets and a debit balance 
C) equity and a debit balance 
D) assets and a credit balance

Question 13

Which of the following factors is assessed using the debt ratio?

Accepted Answer

A) expenses 
B) revenues 
C) risk 
D) income 
A) expenses 
B) revenues 
C) risk 
D) income

Question 14

Calculate the debt ratio using the following trial balance of Harmony Instruments Company as of December 31,2017.

Accepted Answer

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 @#IMG-DLM& 
Debt ratio = To

Question 15

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

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 16

Owner's withdrawals and expenses increase equity.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Office Supplies 
D) Service Revenue 
A) Cash 
B) Accounts Payable 
C) Office Supplies 
D) Service Revenue

Question 18

Provide an explanation for each of the follow liability accounts.

Accepted Answer

The answer of Provide an explanation for each of the...

Question 19

A journal entry for a $270 payment to purchase office supplies was erroneously recorded as a debit to Office Supplies for $520 and a credit to Cash for $270.Which of the following statements correctly states the effect of the error on the trial balance?

Accepted Answer

A) The sum of the credits will exceed the sum of the debits by $250. 
B) The sum of the debits will exceed the sum of the credits by $270. 
C) The sum of the debits will exceed the sum of the credits by $250. 
D) The sum of the debits will exceed the sum of the credits by $520. 
A) The sum of the credits will exceed the sum of the debits by $250. 
B) The sum of the debits will exceed the sum of the credits by $270. 
C) The sum of the debits will exceed the sum of the credits by $250. 
D) The sum of the debits will exceed the sum of the credits by $520.

Question 20

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

Accepted Answer

A) A trial balance has the same format as a balance sheet. 
B) A trial balance presents data in debit and credit format. 
C) A trial balance shows the total amounts of assets and liabilities,but not equity. 
D) A trial balance is prepared after the balance sheet. 
A) A trial balance has the same format as a balance sheet. 
B) A trial balance presents data in debit and credit format. 
C) A trial balance shows the total amounts of assets and liabilities,but not equity. 
D) A trial balance is prepared after the balance sheet.

Exam 2: Recording Business Transactions

Which of the following is provided in a typical chart of accounts?

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

Owner's Withdrawals is a(n)________ account that has a normal ________ balance.

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

Which of the following is an asset account?

The trial balance is an internal document used only by employees of the company.

Which of the following accounts decreases with a credit?

The T-account is a summary device that is shaped like a capital T with debits posted on the left side of the vertical line and credits posted on the right side of the vertical line.

The Accounts Payable account of Golden Company has the following postings: Calculate the ending balance of the account.

The trial balance verifies the equality of debits and credits at a point in time.

A payable involves a future receipt of cash.

For Owner's Capital,the category of account and its normal balance is ________.

Which of the following factors is assessed using the debt ratio?

Calculate the debt ratio using the following trial balance of Harmony Instruments Company as of December 31,2017.

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

Owner's withdrawals and expenses increase equity.

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

Provide an explanation for each of the follow liability accounts.

A journal entry for a $270 payment to purchase office supplies was erroneously recorded as a debit to Office Supplies for $520 and a credit to Cash for $270.Which of the following statements correctly states the effect of the error on the trial balance?

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

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

Filters

Owner's Withdrawals is a(n) account that has a normal balance.