Question 1

Accounts Receivable 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 2

A business repays the amount borrowed on a note with cash.Which of the following accounts is debited?

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Notes Payable 
D) Notes Receivable 
A) Cash 
B) Accounts Payable 
C) Notes Payable 
D) Notes Receivable

Question 3

Which of the following is the final step in the journalizing and posting process?

Accepted Answer

A) Posting the accounts to the ledger. 
B) Identifying each account affected and its type. 
C) Determining whether the accounting equation is in balance. 
D) Determining whether each account has increased or decreased. 
A) Posting the accounts to the ledger. 
B) Identifying each account affected and its type. 
C) Determining whether the accounting equation is in balance. 
D) Determining whether each account has increased or decreased.

Question 4

Jackson Enterprises is a new company organized as a sole proprietorship.The following transactions occurred during the first month of business.
a)Received $15,000 cash from the owner,Marjorie Johnson,in exchange for capital.
b)Paid the first month's rent with $800 cash.
c)Purchased equipment by paying $4,000 cash and executing a note payable for $4,000.
d)Purchased office supplies for $200 cash.The supplies remain at the end of the month.
e)Billed clients for a total of $7,000 for design services rendered.
f)Received $1,000 cash from clients for services rendered above.
Required:
1.Prepare journal entries and post the journal entries to T-accounts.
2.Prepare a trial balance at the end of the first month using the above transactions.

Accepted Answer

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Question 5

Which of the following sequences is the normal sequence of flow of accounting data?

Accepted Answer

A) Ledger → Journal → Source document 
B) Journal → Source document → Ledger 
C) Source document → Journal → Ledger 
D) Source document → Ledger → Journal 
A) Ledger → Journal → Source document 
B) Journal → Source document → Ledger 
C) Source document → Journal → Ledger 
D) Source document → Ledger → Journal

Question 6

On October 31,a business pays $1,500 cash for television ads that appeared during October.Which of the following accounts is debited?

Accepted Answer

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

Question 7

Which of the following accounts increases with a credit?

Accepted Answer

A) Owner,Withdrawals 
B) Owner,Capital 
C) Accounts Receivable 
D) Prepaid Expense 
A) Owner,Withdrawals 
B) Owner,Capital 
C) Accounts Receivable 
D) Prepaid Expense

Question 8

Companies use a ledger to show all of the increases and decreases in each account along with their balances.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

"All debits are increases and all credits are decreases." Is this a correct statement? Explain your answer.

Accepted Answer

This is not a correct statement.The doub

Question 12

Which one of the following account groups normally has a debit balance?

Accepted Answer

A) assets and expenses 
B) revenues and expenses 
C) liabilities and revenues 
D) assets and liabilities 
A) assets and expenses 
B) revenues and expenses 
C) liabilities and revenues 
D) assets and liabilities

Question 13

An accounts receivable is often described as a sale "on account."

Accepted Answer

A) True 
 B)False

Question 14

A business makes a payment of $1,400 on a note payable.Which of the following journal entries would be recorded?

Accepted Answer

A) Cash is credited and Notes Payable is debited for $1,400. 
B) Notes Payable is credited and Cash is debited for $1,400. 
C) Cash is credited and Financing Expense is debited for $1,400. 
D) Cash is debited and Financing Revenue is credited for $1,400. 
A) Cash is credited and Notes Payable is debited for $1,400. 
B) Notes Payable is credited and Cash is debited for $1,400. 
C) Cash is credited and Financing Expense is debited for $1,400. 
D) Cash is debited and Financing Revenue is credited for $1,400.

Question 15

At the end of a month,a sole proprietorship has the following ending balances in its accounts in the ledger.
   Use this data to prepare a trial balance.

Accepted Answer

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

Question 16

A chart of accounts provides more detail than a ledger.

Accepted Answer

A) True 
 B)False

Question 17

The account title used for recording the payment of rent in advance for an office building is ________.

Accepted Answer

A) Prepaid Rent 
B) Rent Payable 
C) Rent Revenue 
D) Rent Expense 
A) Prepaid Rent 
B) Rent Payable 
C) Rent Revenue 
D) Rent Expense

Question 18

The following are the current month's balances for selected accounts of Sandlin Marketing Company.   What is the net income for Sandlin Marketing for the current month?

Accepted Answer

A) $11,000 
B) $9,250 
C) $12,750 
D) $12,000 
A) $11,000 
B) $9,250 
C) $12,750 
D) $12,000

Question 19

List the four parts of a journal entry.

Accepted Answer

1.Date of the transaction
2.De

Question 20

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

Accepted Answer

A) $9,000 
B) $2,000 
C) $3,000 
D) $11,000 
A) $9,000 
B) $2,000 
C) $3,000 
D) $11,000

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

A business repays the amount borrowed on a note with cash.Which of the following accounts is debited?

Which of the following is the final step in the journalizing and posting process?

Which of the following sequences is the normal sequence of flow of accounting data?

On October 31,a business pays $1,500 cash for television ads that appeared during October.Which of the following accounts is debited?

Which of the following accounts increases with a credit?

Companies use a ledger to show all of the increases and decreases in each account along with their balances.

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

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

"All debits are increases and all credits are decreases." Is this a correct statement? Explain your answer.

Which one of the following account groups normally has a debit balance?

An accounts receivable is often described as a sale "on account."

A business makes a payment of $1,400 on a note payable.Which of the following journal entries would be recorded?

At the end of a month,a sole proprietorship has the following ending balances in its accounts in the ledger. Use this data to prepare a trial balance.

A chart of accounts provides more detail than a ledger.

The account title used for recording the payment of rent in advance for an office building is ________.

The following are the current month's balances for selected accounts of Sandlin Marketing Company. What is the net income for Sandlin Marketing for the current month?

List the four parts of a journal entry.

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

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

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

A business repays the amount borrowed on a note with cash.Which of the following accounts is debited?

Which of the following is the final step in the journalizing and posting process?

Which of the following sequences is the normal sequence of flow of accounting data?

On October 31,a business pays $1,500 cash for television ads that appeared during October.Which of the following accounts is debited?

Which of the following accounts increases with a credit?

Companies use a ledger to show all of the increases and decreases in each account along with their balances.

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

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

"All debits are increases and all credits are decreases." Is this a correct statement? Explain your answer.

Which one of the following account groups normally has a debit balance?

An accounts receivable is often described as a sale "on account."

A business makes a payment of $1,400 on a note payable.Which of the following journal entries would be recorded?

At the end of a month,a sole proprietorship has the following ending balances in its accounts in the ledger. Use this data to prepare a trial balance.

A chart of accounts provides more detail than a ledger.

The account title used for recording the payment of rent in advance for an office building is ________.

The following are the current month's balances for selected accounts of Sandlin Marketing Company. What is the net income for Sandlin Marketing for the current month?

List the four parts of a journal entry.

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

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 Receivable is a(n) account and has a normal balance.