Question 1

A trial balance is the list of only a company's debit accounts along with their account numbers at a point in time.

Accepted Answer

A) True 
 B)False

Question 2

For Owner's 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

Question 3

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

Accepted Answer

A) 
 
B) 
 
C) 
 
D)

Question 4

A business purchases $500 of office supplies on account. Which of the following accounts is credited?

Accepted Answer

A)  Cash 
B)  Accounts Payable 
C)  Office Supplies 
D)  Service Revenue

Question 5

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

Accepted Answer

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

Question 6

In reviewing the T-account for Accounts Payable, you find that the beginning balance is zero, the total increases are $7,400 and the total decreases are $4,900. This means that the ending balance of the account is a credit balance of $2,500.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

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...

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

Question 10

When a business makes a cash payment, the Cash account is debited.

Accepted Answer

A) True 
 B)False

Question 11

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

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

A business paid salaries of $6,000 in cash. Record the transaction in the journal.

Accepted Answer

The answer of A business paid salaries of $6,000 in...

Question 14

An accounts receivable requires the business to pay cash in the future.

Accepted Answer

A) True 
 B)False

Question 15

The Owner's Withdrawals account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 16

Posting a transaction means ________.

Accepted Answer

A)  calculating the balance in an account 
B)  transferring data from the journal to the ledger 
C)  preparing a summary of account balances 
D)  finding the account number in the chart of accounts

Question 17

A business purchases $500 of office supplies on account. Which of the following accounts is debited?

Accepted Answer

A)  Cash 
B)  Accounts Payable 
C)  Office Supplies 
D)  Utilities Expense

Question 18

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

Question 19

A trial balance is a list of all of the accounts of a company with their balances at a point in time.

Accepted Answer

A) True 
 B)False

Question 20

The accounting process of transferring a transaction from the journal to the ledger is called ________.

Accepted Answer

A)  journalizing 
B)  posting 
C)  compounding 
D)  sourcing

Exam 2: Recording Business Transactions

A trial balance is the list of only a company's debit accounts along with their account numbers at a point in time.

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

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

A business purchases $500 of office supplies on account. Which of the following accounts is credited?

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

In reviewing the T-account for Accounts Payable, you find that the beginning balance is zero, the total increases are $7,400 and the total decreases are $4,900. This means that the ending balance of the account is a credit balance of $2,500.

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

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

When is a trial balance usually prepared?

When a business makes a cash payment, the Cash account is debited.

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

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

A business paid salaries of $6,000 in cash. Record the transaction in the journal.

An accounts receivable requires the business to pay cash in the future.

The Owner's Withdrawals account is increased by a debit.

Posting a transaction means ________.

A business purchases $500 of office supplies on account. Which of the following accounts is debited?

A posting reference column is used ________.

A trial balance is a list of all of the accounts of a company with their balances at a point in time.

The accounting process of transferring a transaction from the journal to the ledger is called ________.