Question 1

The trial balance verifies the equality of debits and credits on a specific date.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following accounts increases with a debit?

Accepted Answer

A) Prepaid Rent 
B) Interest Payable 
C) Accounts Payable 
D) Owner,Capital 
A) Prepaid Rent 
B) Interest Payable 
C) Accounts Payable 
D) Owner,Capital

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Van Jones is the owner of a sole proprietorship.Van took $5,000 from the business for personal use.Which of the following accounts is debited?

Accepted Answer

A) Cash 
B) Jones,Withdrawals 
C) Jones,Dividends 
D) Jones,Capital 
A) Cash 
B) Jones,Withdrawals 
C) Jones,Dividends 
D) Jones,Capital

Question 5

Debits in the journal are always posted as debits in the ledger.

Accepted Answer

A) True 
 B)False

Question 6

Provide a definition of each of the following accounting terms.

Accepted Answer

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

Question 7

An accounting entry that is characterized by having multiple debits and/or multiple credits is called a ________ entry.

Accepted Answer

A) balanced 
B) posted 
C) chart of accounts 
D) compound journal 
A) balanced 
B) posted 
C) chart of accounts 
D) compound journal

Question 8

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

Accepted Answer

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

Question 9

In a computerized environment,the posting process is completed automatically when the user enters the journal entry.

Accepted Answer

A) True 
 B)False

Question 10

A posting reference column is used ________.

Accepted Answer

A) while preparing the trial balance using the ledger 
B) when the information is transferred from the journal to the ledger 
C) when the information is transferred from the ledger to the post-closing trial balance 
D) while preparing the balance sheet using the trial balance 
A) while preparing the trial balance using the ledger 
B) when the information is transferred from the journal to the ledger 
C) when the information is transferred from the ledger to the post-closing trial balance 
D) while preparing the balance sheet using the trial balance

Question 11

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 12

Accounts Payable is a(n)________ account and has a normal ________ balance.

Accepted Answer

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

Question 13

Which of the following journal entries would be recorded if a sole proprietor,Stan Johnson,contributed $3,000 cash to his business?

Accepted Answer

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

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

What are two ways in which a company can improve its debt ratio?

Accepted Answer

Increase a

Question 16

A payment of an expense in advance is called a prepaid expense.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a source document that provides the evidence and data for accounting transactions?

Accepted Answer

A) Journal 
B) Sales invoice 
C) Ledger 
D) Trial balance 
A) Journal 
B) Sales invoice 
C) Ledger 
D) Trial balance

Question 18

Randall's Service Company began operations on January 1,2019.The following Trial Balance was prepared on December 31,2019.Capital contributions during the year were $58,000.     What is the December 31,2019 balance of Randall,Capital?

Accepted Answer

A) $58,000 
B) $51,300 
C) $74,500 
D) $16,500 
A) $58,000 
B) $51,300 
C) $74,500 
D) $16,500

Question 19

An account is a detailed record of all increases and decreases that have occurred in an individual asset,liability,or equity during a specific period.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is assessed using the debt ratio?

Accepted Answer

A) profitability 
B) revenues 
C) risk of default 
D) net income 
A) profitability 
B) revenues 
C) risk of default 
D) net income

The trial balance verifies the equality of debits and credits on a specific date.

Which of the following accounts increases with a debit?

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

Van Jones is the owner of a sole proprietorship.Van took $5,000 from the business for personal use.Which of the following accounts is debited?

Debits in the journal are always posted as debits in the ledger.

Provide a definition of each of the following accounting terms.

An accounting entry that is characterized by having multiple debits and/or multiple credits is called a ________ entry.

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

In a computerized environment,the posting process is completed automatically when the user enters the journal entry.

A posting reference column is used ________.

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

Accounts Payable is a(n) account and has a normal balance.

Which of the following journal entries would be recorded if a sole proprietor,Stan Johnson,contributed $3,000 cash to his business?

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

What are two ways in which a company can improve its debt ratio?

A payment of an expense in advance is called a prepaid expense.

Which of the following is a source document that provides the evidence and data for accounting transactions?

Randall's Service Company began operations on January 1,2019.The following Trial Balance was prepared on December 31,2019.Capital contributions during the year were $58,000. What is the December 31,2019 balance of Randall,Capital?

An account is a detailed record of all increases and decreases that have occurred in an individual asset,liability,or equity during a specific period.

Which of the following is assessed using the debt ratio?

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

Exam 2: Recording Business Transactions

The trial balance verifies the equality of debits and credits on a specific date.

Which of the following accounts increases with a debit?

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

Van Jones is the owner of a sole proprietorship.Van took $5,000 from the business for personal use.Which of the following accounts is debited?

Debits in the journal are always posted as debits in the ledger.

Provide a definition of each of the following accounting terms.

An accounting entry that is characterized by having multiple debits and/or multiple credits is called a ________ entry.

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

In a computerized environment,the posting process is completed automatically when the user enters the journal entry.

A posting reference column is used ________.

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

Accounts Payable is a(n)________ account and has a normal ________ balance.

Which of the following journal entries would be recorded if a sole proprietor,Stan Johnson,contributed $3,000 cash to his business?

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

What are two ways in which a company can improve its debt ratio?

A payment of an expense in advance is called a prepaid expense.

Which of the following is a source document that provides the evidence and data for accounting transactions?

Randall's Service Company began operations on January 1,2019.The following Trial Balance was prepared on December 31,2019.Capital contributions during the year were $58,000. What is the December 31,2019 balance of Randall,Capital?

An account is a detailed record of all increases and decreases that have occurred in an individual asset,liability,or equity during a specific period.

Which of the following is assessed using the debt ratio?

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

Accounts Payable is a(n) account and has a normal balance.