Question 1

Which of the following would start with a 1 in the chart of accounts?

Accepted Answer

A) Receivables and Equipment 
B) Depreciation Expense and Marketing Expense 
C) Merchandise Sales and Rent Revenue 
D) Common Stock and Dividends

Question 2

A promissory note owed to another company would most likely appear in which of the following accounts?

Accepted Answer

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

Question 3

Which of the following is NOT a revenue account?

Accepted Answer

A) Salaries 
B) Sales 
C) Fees Earned 
D) Professional Fees

Question 4

A business generally has just one expense account.

Accepted Answer

A) True 
 B)False

Question 5

Sassycat Company's trial balance contains the following balances: 
What is the amount of total credits for this trial balance?

Accepted Answer

A) $2,760 
B) $3,180 
C) $3,130 
D) $2,220

Question 6

The Stockholders' Equity section would include accounts such as Retained Earnings and Revenues.

Accepted Answer

A) True 
 B)False

Question 7

A company purchased a truck for $800 on credit. The journal entry to record this transaction, however, was a debit to 'Truck' for $700 and a credit to 'Account Payable' for $700. What will the effect be on the trial balance?

Accepted Answer

A) Debits will be $100 less than credits. 
B) Debits will be $100 more than credits. 
C) The trial balance will still balance. 
D) None of the above

Question 8

S & C, Inc. purchases a building for $70,000 cash. The journal entry would include a:

Accepted Answer

A) debit to Building and a credit to Cash. 
B) debit to Common Stock and a credit to Building. 
C) debit to Building and a credit to Accounts Payable. 
D) debit to Building and a credit to Common Stock.

Question 9

The information from the general journal is transferred to the:

Accepted Answer

A) Balance Sheet. 
B) Income Statement. 
C) general ledger. 
D) Statement of Retained Earnings.

Question 10

If debits equal credits on the trial balance, it means that all the steps in the accounting process are correct.

Accepted Answer

A) True 
 B)False

Question 11

The Stockholders' Equity accounts Dividends, Revenues and Expenses have normal balances of:

Accepted Answer

A) credit, debit, and debit, respectively. 
B) debit, credit, and credit, respectively. 
C) debit, credit, and debit, respectively. 
D) credit, credit, and credit, respectively.

Question 12

Shaman, Inc. purchased $325 of office supplies on account and treated the supplies as a prepaid expense. The journal entry would require a:

Accepted Answer

A) debit to Office Supplies Expense and a credit to Cash. 
B) debit to Office Supplies and a credit to Cash. 
C) debit to Office Supplies and a credit to Accounts Payable. 
D) debit to Office Supplies Expense and a credit to Office Supplies.

Exam 2: Analyzing and Recording Business Transactions

Which of the following would start with a 1 in the chart of accounts?

A promissory note owed to another company would most likely appear in which of the following accounts?

Which of the following is NOT a revenue account?

A business generally has just one expense account.

Sassycat Company's trial balance contains the following balances: What is the amount of total credits for this trial balance?

The Stockholders' Equity section would include accounts such as Retained Earnings and Revenues.

A company purchased a truck for $800 on credit. The journal entry to record this transaction, however, was a debit to 'Truck' for $700 and a credit to 'Account Payable' for $700. What will the effect be on the trial balance?

S & C, Inc. purchases a building for $70,000 cash. The journal entry would include a:

The information from the general journal is transferred to the:

If debits equal credits on the trial balance, it means that all the steps in the accounting process are correct.

The Stockholders' Equity accounts Dividends, Revenues and Expenses have normal balances of:

Shaman, Inc. purchased $325 of office supplies on account and treated the supplies as a prepaid expense. The journal entry would require a: