Question 1

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 2

The Owner,Capital account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following accounts is an asset?

Accepted Answer

A) Salaries Expense 
B) Accounts Payable 
C) Service Revenue 
D) Prepaid Expense 
A) Salaries Expense 
B) Accounts Payable 
C) Service Revenue 
D) Prepaid Expense

Question 4

When a business collects cash,the Cash account is debited.

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 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.

Question 6

State whether the normal balance of each of the following accounts is a debit or credit.

Accepted Answer

The answer of State whether the normal balance of each...

Question 7

Which of the following is a liability account?

Accepted Answer

A) Accounts Payable 
B) Prepaid Expense 
C) Salaries Expense 
D) Service Revenue 
A) Accounts Payable 
B) Prepaid Expense 
C) Salaries Expense 
D) Service Revenue

Question 8

Which of the following sequences states the order in which accounts are listed on a trial balance?

Accepted Answer

A) Equity → Assets → Liabilities 
B) Liabilities → Assets → Equity 
C) Assets → Equity → Liabilities 
D) Assets → Liabilities → Equity 
A) Equity → Assets → Liabilities 
B) Liabilities → Assets → Equity 
C) Assets → Equity → Liabilities 
D) Assets → Liabilities → Equity

Question 9

Musical Instruments Company sells musical instruments.On December 31,2019,after its first month of business,the sole proprietorship had the following balances in its accounts,listed alphabetically.
   Determine the balance in the cash account and prepare the trial balance.

Accepted Answer

The cash balance is the differ

Question 10

A business performs services for $26,000 and collects cash from the customer.Which of the following accounts will be 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 11

Adams Company recorded the following journal entry on March 2,2018.   From the journal entry above,identify the transaction on March 2,2018.

Accepted Answer

A) Adams purchased goods worth $8,500 and signed a one-year note for the same amount. 
B) Adams sold goods for $8,500 cash. 
C) Adams received $8,500 for services to be performed in a later period. 
D) Adams paid $8,500 for services to be received at a later date. 
A) Adams purchased goods worth $8,500 and signed a one-year note for the same amount. 
B) Adams sold goods for $8,500 cash. 
C) Adams received $8,500 for services to be performed in a later period. 
D) Adams paid $8,500 for services to be received at a later date.

Question 12

After initially recording a transaction,the data is then transferred to the ________.

Accepted Answer

A) chart of accounts 
B) ledger 
C) trial balance 
D) journal 
A) chart of accounts 
B) ledger 
C) trial balance 
D) journal

Question 13

A customer's promise to pay in the future for services or goods sold is called a(n)________.

Accepted Answer

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

Question 14

Provide a definition of each of the following accounting terms.

Accepted Answer

The answer of Provide a definition of each of the...

Question 15

Wilson Furniture Company is a sole proprietorship.Wilson contributed $40,000 of cash in exchange for capital.Which of the following accounts will be debited?

Accepted Answer

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

Question 16

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 17

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

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 18

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

Accepted Answer

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

Question 19

The ability of a company to pay its debts can be evaluated by using the ________.

Accepted Answer

A) earnings per share 
B) return on assets ratio 
C) debt ratio 
D) fully diluted earnings per share 
A) earnings per share 
B) return on assets ratio 
C) debt ratio 
D) fully diluted earnings per share

Question 20

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

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

The Owner,Capital account is increased by a debit.

Which of the following accounts is an asset?

When a business collects cash,the Cash account is debited.

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

State whether the normal balance of each of the following accounts is a debit or credit.

Which of the following is a liability account?

Which of the following sequences states the order in which accounts are listed on a trial balance?

Musical Instruments Company sells musical instruments.On December 31,2019,after its first month of business,the sole proprietorship had the following balances in its accounts,listed alphabetically. Determine the balance in the cash account and prepare the trial balance.

A business performs services for $26,000 and collects cash from the customer.Which of the following accounts will be debited?

Adams Company recorded the following journal entry on March 2,2018. From the journal entry above,identify the transaction on March 2,2018.

After initially recording a transaction,the data is then transferred to the ________.

A customer's promise to pay in the future for services or goods sold is called a(n)________.

Provide a definition of each of the following accounting terms.

Wilson Furniture Company is a sole proprietorship.Wilson contributed $40,000 of cash in exchange for capital.Which of the following accounts will be debited?

Journalizing a transaction involves ________.

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

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

The ability of a company to pay its debts can be evaluated by using the ________.

Which of the following accounts decreases with a debit?

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

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Exam 2: Recording Business Transactions

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

The Owner,Capital account is increased by a debit.

Which of the following accounts is an asset?

When a business collects cash,the Cash account is debited.

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

State whether the normal balance of each of the following accounts is a debit or credit.

Which of the following is a liability account?

Which of the following sequences states the order in which accounts are listed on a trial balance?

Musical Instruments Company sells musical instruments.On December 31,2019,after its first month of business,the sole proprietorship had the following balances in its accounts,listed alphabetically. Determine the balance in the cash account and prepare the trial balance.

A business performs services for $26,000 and collects cash from the customer.Which of the following accounts will be debited?

Adams Company recorded the following journal entry on March 2,2018. From the journal entry above,identify the transaction on March 2,2018.

After initially recording a transaction,the data is then transferred to the ________.

A customer's promise to pay in the future for services or goods sold is called a(n)________.

Provide a definition of each of the following accounting terms.

Wilson Furniture Company is a sole proprietorship.Wilson contributed $40,000 of cash in exchange for capital.Which of the following accounts will be debited?

Journalizing a transaction involves ________.

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

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

The ability of a company to pay its debts can be evaluated by using the ________.

Which of the following accounts decreases with a debit?

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

Filters