Question 1

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 2

A sole proprietorship has the following transactions: The business received $20,000 cash from the owner in exchange for capital.
The business purchases $600 of office supplies on account.
The business purchases $3,000 of furniture on account.
The business performs services to various clients totaling $11,000 on account.
The business pays out $3,000 for salaries expense and $4,500 for rent expense.
The business pays $600 to a supplier for the office supplies purchased earlier.
The business collects $2,000 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 3

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 4

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 5

The account title used for recording a written promise that a customer will pay the business a fixed amount of money and interest by a certain date in the future is ________.

Accepted Answer

A) Prepaid Note 
B) Notes Payable 
C) Notes Receivable 
D) Accounts Receivable 
A) Prepaid Note 
B) Notes Payable 
C) Notes Receivable 
D) Accounts Receivable

Question 6

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

Accepted Answer

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

Question 7

Which of the following is a liability account?

Accepted Answer

A) Service Revenue 
B) Building 
C) Prepaid Rent 
D) Unearned Revenue 
A) Service Revenue 
B) Building 
C) Prepaid Rent 
D) Unearned Revenue

Question 8

The process of transferring data from the ledger to the journal is called posting.

Accepted Answer

A) True 
 B)False

Question 9

When is a trial balance usually prepared?

Accepted Answer

A) after each entry is journalized 
B) before the financial statements are prepared 
C) after the financial statements are prepared 
D) at the beginning of an accounting period 
A) after each entry is journalized 
B) before the financial statements are prepared 
C) after the financial statements are prepared 
D) at the beginning of an accounting period

Question 10

A business prepays four months' office rent.Which of the following accounts is debited?

Accepted Answer

A) Rent Expense 
B) Cash 
C) Prepaid Rent 
D) Unearned Rent 
A) Rent Expense 
B) Cash 
C) Prepaid Rent 
D) Unearned Rent

Question 11

Mason's Restaurant and Catering is a sole proprietorship owned by Michael Mason.The business had the following transactions during the month of May.
   The business uses the following accounts: Cash;Accounts Receivable;Office Supplies;Delivery Van;Accounts Payable;Utilities Payable;Unearned Revenue;Notes Payable;Mason,Capital;Mason,Withdrawals;Service Revenue;Salaries Expense;Equipment Rent Expense;Restaurant Rent Expense;Utilities Expense;Catering Expense;and Advertising Expense.
Required: Journalize each transaction.Explanations are not needed.

Accepted Answer

The answer of Mason's Restaurant and Catering is a sole...

Question 12

List the four steps in the flow of accounting data.

Accepted Answer

1.transactions occur
2.source

Question 13

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 14

Which of the following statements is TRUE of revenues?

Accepted Answer

A) Revenues decrease equity,so a revenue account's normal balance is a credit balance. 
B) Revenues decrease equity,so a revenue account's normal balance is a debit balance. 
C) Revenues increase equity,so a revenue account's normal balance is a debit balance. 
D) Revenues increase equity,so a revenue account's normal balance is a credit balance. 
A) Revenues decrease equity,so a revenue account's normal balance is a credit balance. 
B) Revenues decrease equity,so a revenue account's normal balance is a debit balance. 
C) Revenues increase equity,so a revenue account's normal balance is a debit balance. 
D) Revenues increase equity,so a revenue account's normal balance is a credit balance.

Question 15

Explain the difference between Prepaid Rent and Unearned Revenue.

Accepted Answer

Prepaid Rent is an asset account that re

Question 16

A business purchases equipment by paying $7,517 in cash and issuing a note payable of $19,410.Which of the following occurs?

Accepted Answer

A) Cash is credited for $7,517,Equipment is credited for $26,927,and Notes Payable is debited for $19,410. 
B) Cash is credited for $7,517,Equipment is debited for $26,927,and Notes Payable is credited for $19,410. 
C) Cash is debited for $7,517,Equipment is debited for $19,410,and Notes Payable is credited for $26,927. 
D) Cash is debited for $7,517,Equipment is credited for $19,410,and Notes Payable is debited for $11,893. 
A) Cash is credited for $7,517,Equipment is credited for $26,927,and Notes Payable is debited for $19,410. 
B) Cash is credited for $7,517,Equipment is debited for $26,927,and Notes Payable is credited for $19,410. 
C) Cash is debited for $7,517,Equipment is debited for $19,410,and Notes Payable is credited for $26,927. 
D) Cash is debited for $7,517,Equipment is credited for $19,410,and Notes Payable is debited for $11,893.

Question 17

A business receives $40,000 for services that it will perform over the next four months.Which of the following accounts is credited?

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Service Revenue 
D) Unearned Revenue 
A) Cash 
B) Accounts Payable 
C) Service Revenue 
D) Unearned Revenue

Question 18

Revenues and the owner's contributions in the business increase owner's equity.

Accepted Answer

A) True 
 B)False

Question 19

Transactions are first recorded in a ________.

Accepted Answer

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

Question 20

In reviewing the T-account for Accounts Payable,you find that the beginning balance is zero,the total increases are $7,200 and the total decreases are $4,000.This means that the ending balance of the account is a credit balance of $3,200.

Accepted Answer

A) True 
 B)False

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

Which of the following is an asset account?

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

The account title used for recording a written promise that a customer will pay the business a fixed amount of money and interest by a certain date in the future is ________.

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

Which of the following is a liability account?

The process of transferring data from the ledger to the journal is called posting.

When is a trial balance usually prepared?

A business prepays four months' office rent.Which of the following accounts is debited?

List the four steps in the flow of accounting data.

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

Which of the following statements is TRUE of revenues?

Explain the difference between Prepaid Rent and Unearned Revenue.

A business purchases equipment by paying $7,517 in cash and issuing a note payable of $19,410.Which of the following occurs?

A business receives $40,000 for services that it will perform over the next four months.Which of the following accounts is credited?

Revenues and the owner's contributions in the business increase owner's equity.

Transactions are first recorded in a ________.

In reviewing the T-account for Accounts Payable,you find that the beginning balance is zero,the total increases are $7,200 and the total decreases are $4,000.This means that the ending balance of the account is a credit balance of $3,200.

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

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

Which of the following is an asset account?

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

The account title used for recording a written promise that a customer will pay the business a fixed amount of money and interest by a certain date in the future is ________.

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

Which of the following is a liability account?

The process of transferring data from the ledger to the journal is called posting.

When is a trial balance usually prepared?

A business prepays four months' office rent.Which of the following accounts is debited?

List the four steps in the flow of accounting data.

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

Which of the following statements is TRUE of revenues?

Explain the difference between Prepaid Rent and Unearned Revenue.

A business purchases equipment by paying $7,517 in cash and issuing a note payable of $19,410.Which of the following occurs?

A business receives $40,000 for services that it will perform over the next four months.Which of the following accounts is credited?

Revenues and the owner's contributions in the business increase owner's equity.

Transactions are first recorded in a ________.

In reviewing the T-account for Accounts Payable,you find that the beginning balance is zero,the total increases are $7,200 and the total decreases are $4,000.This means that the ending balance of the account is a credit balance of $3,200.

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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