Question 1

A shortened form of the ledger is called a ________.

Accepted Answer

A) working account 
B) summary account 
C) chart of accounts 
D) T-account 
A) working account 
B) summary account 
C) chart of accounts 
D) T-account

Question 2

When a business records the earning of service revenue,the Service Revenue account is credited.

Accepted Answer

A) True 
 B)False

Question 3

A business buys $300 of office supplies on account.Which of the following accounts is debited?

Accepted Answer

A) Cash 
B) Accounts Payable 
C) Office Supplies 
D) Accounts Receivable 
A) Cash 
B) Accounts Payable 
C) Office Supplies 
D) Accounts Receivable

Question 4

The following are selected current month's balances for Morgan Company.   Based on this information,calculate the total amount of credits for the trial balance.

Accepted Answer

A) $25,500 
B) $20,750 
C) $24,750 
D) $32,750 
A) $25,500 
B) $20,750 
C) $24,750 
D) $32,750

Question 5

For Owner,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 6

The following transactions for the month of March have been journalized and posted to the proper accounts of a sole proprietorship.
  What is the balance in Cash on March 6?

Accepted Answer

A) $14,890 
B) $13,890 
C) $15,890 
D) $15,600 
A) $14,890 
B) $13,890 
C) $15,890 
D) $15,600

Question 7

For each transaction,identify which account is debited and which account is credited.Use proper account titles.

Accepted Answer

The answer of For each transaction,identify which account is debited...

Question 8

All asset accounts and equity accounts increase with a debit.

Accepted Answer

A) True 
 B)False

Question 9

Explain the difference between Accounts Receivable and Accounts Payable.

Accepted Answer

Accounts Receivable is an asset account

Question 10

A compound journal entry has more than two accounts,but the total dollar value of the debits still must equal the total dollar value of the credits.

Accepted Answer

A) True 
 B)False

Question 11

Provide a definition of each of the following accounting terms.

Accepted Answer

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

Question 12

Which of the following statements regarding the accounting equation is incorrect?

Accepted Answer

A) The equation is the basic tool of accounting. 
B) The equation consists of three categories: assets,liabilities,and equity. 
C) Each category of the accounting equation contains accounts. 
D) The equation can be stated as assets plus liabilities equals equity. 
A) The equation is the basic tool of accounting. 
B) The equation consists of three categories: assets,liabilities,and equity. 
C) Each category of the accounting equation contains accounts. 
D) The equation can be stated as assets plus liabilities equals equity.

Question 13

A business makes a cash payment of $12,000 to a supplier for supplies purchased two weeks earlier.Which of the following accounts is debited?

Accepted Answer

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

Question 14

The debt ratio is one indication of the ability of a company to fulfill its obligation to repay liabilities.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) Ranger,Withdrawals 
B) Cash 
C) Ranger,Capital 
D) Accounts Payable 
A) Ranger,Withdrawals 
B) Cash 
C) Ranger,Capital 
D) Accounts Payable

Question 16

A payable involves a future receipt of cash.

Accepted Answer

A) True 
 B)False

Question 17

In reviewing the T-account for Accounts Receivable,you find that the beginning balance is zero,the total increases are $5,400 and the total decreases are $2,100.This means that the ending balance of the account is a credit balance of $3,300.

Accepted Answer

A) True 
 B)False

Question 18

The first step in the flow of accounting data is the preparation of source documents.

Accepted Answer

A) True 
 B)False

Question 19

Unearned Revenue is a liability account.

Accepted Answer

A) True 
 B)False

Question 20

If the total debits equal the total credits on the trial balance,the individual account balances will be error free.

Accepted Answer

A) True 
 B)False

A shortened form of the ledger is called a ________.

When a business records the earning of service revenue,the Service Revenue account is credited.

A business buys $300 of office supplies on account.Which of the following accounts is debited?

The following are selected current month's balances for Morgan Company. Based on this information,calculate the total amount of credits for the trial balance.

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

The following transactions for the month of March have been journalized and posted to the proper accounts of a sole proprietorship. What is the balance in Cash on March 6?

For each transaction,identify which account is debited and which account is credited.Use proper account titles.

All asset accounts and equity accounts increase with a debit.

Explain the difference between Accounts Receivable and Accounts Payable.

A compound journal entry has more than two accounts,but the total dollar value of the debits still must equal the total dollar value of the credits.

Provide a definition of each of the following accounting terms.

Which of the following statements regarding the accounting equation is incorrect?

A business makes a cash payment of $12,000 to a supplier for supplies purchased two weeks earlier.Which of the following accounts is debited?

The debt ratio is one indication of the ability of a company to fulfill its obligation to repay liabilities.

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

A payable involves a future receipt of cash.

In reviewing the T-account for Accounts Receivable,you find that the beginning balance is zero,the total increases are $5,400 and the total decreases are $2,100.This means that the ending balance of the account is a credit balance of $3,300.

The first step in the flow of accounting data is the preparation of source documents.

Unearned Revenue is a liability account.

If the total debits equal the total credits on the trial balance,the individual account balances will be error free.

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

A shortened form of the ledger is called a ________.

When a business records the earning of service revenue,the Service Revenue account is credited.

A business buys $300 of office supplies on account.Which of the following accounts is debited?

The following are selected current month's balances for Morgan Company. Based on this information,calculate the total amount of credits for the trial balance.

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

The following transactions for the month of March have been journalized and posted to the proper accounts of a sole proprietorship. What is the balance in Cash on March 6?

For each transaction,identify which account is debited and which account is credited.Use proper account titles.

All asset accounts and equity accounts increase with a debit.

Explain the difference between Accounts Receivable and Accounts Payable.

A compound journal entry has more than two accounts,but the total dollar value of the debits still must equal the total dollar value of the credits.

Provide a definition of each of the following accounting terms.

Which of the following statements regarding the accounting equation is incorrect?

A business makes a cash payment of $12,000 to a supplier for supplies purchased two weeks earlier.Which of the following accounts is debited?

The debt ratio is one indication of the ability of a company to fulfill its obligation to repay liabilities.

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

A payable involves a future receipt of cash.

In reviewing the T-account for Accounts Receivable,you find that the beginning balance is zero,the total increases are $5,400 and the total decreases are $2,100.This means that the ending balance of the account is a credit balance of $3,300.

The first step in the flow of accounting data is the preparation of source documents.

Unearned Revenue is a liability account.

If the total debits equal the total credits on the trial balance,the individual account balances will be error free.

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