Question 1

A business renders services to a customer for $16,000 on account.Which account is debited?

Accepted Answer

A)  Cash 
B)  Accounts receivable 
C)  Service revenue 
D)  Accounts payable

Question 2

A business purchases equipment by paying cash of $8,000 and issuing a note payable of $12,000.Which of the following occurs?

Accepted Answer

A)  Cash is credited for $8,000; Equipment is credited for $20,000; and Notes payable is debited for $12,000. 
B)  Cash is credited for $8,000; Equipment is debited for $20,000; and Notes payable is credited for $12,000. 
C)  Cash is debited for $8,000; Equipment is debited for $12,000; and Notes payable is credited for $20,000. 
D)  Cash is credited for $8,000; Equipment is credited for $12,000; and Notes payable is debited for $4,000.

Question 3

Which of the following accounts is an asset?

Accepted Answer

A)  Cash 
B)  Notes payable 
C)  Drawing 
D)  Expenses

Question 4

A business makes a cash payment of $12,000 to a creditor.Which account is debited?

Accepted Answer

A)  Cash 
B)  Accounts payable 
C)  Service revenue 
D)  Accounts receivable

Question 5

The normal sequence of information flow in an accounting system is:

Accepted Answer

A)  ledger, journal, source document. 
B)  journal, source document, ledger. 
C)  source document, journal, ledger. 
D)  source document, ledger, journal.

Question 6

The following transactions have been journalized and posted to the proper accounts. 1.Mark Call invested $7,000 cash in his new design services business.
2)The business paid the first month's rent with $700 cash.
3)The business purchased equipment by paying $2,000 down and executing a note payable for $4,500.
4)The business purchased supplies for $850 cash.
5)The business billed its clients a total of $4,000 for design services rendered.
6)The business collected $3,000 on account from one of its clients.
-
What is the balance in Accounts receivable?
A) $8,500
B) $1,000
C) $7,000
D) $4,000

Accepted Answer

The answer of The following transactions have been journalized and...

Question 7

A business renders services to a customer for $16,000 on account.Which account is credited?

Accepted Answer

A)  Cash 
B)  Accounts receivable 
C)  Service revenue 
D)  Accounts payable

Question 8

A business purchased $200 of supplies on account and recorded the following journal entry: $$\begin{array} { | l | r | r | } 
\hline \text { Supplies } & 200 & \
\hline \text { Accounts payable } & & 200 \
\hline
\end{array}$$ Which of the following sets of ledger accounts reflect the posting of this transaction?

Accepted Answer

A) 
$\begin{array}{l|l}
{\text { Supplies }} \
\hline & 200
\end{array}$$\begin{array}{l}
\text { Accounts payable }\
\begin{array}{r|r}
\hline 200 &
\end{array}
\end{array}$ 
B) 
$\begin{array}{l|l}
{\text { Supplies }} \
\hline  200&
\end{array}$$\begin{array}{l}
\text { Accounts payable }\
\begin{array}{r|r}
\hline 200 &
\end{array}
\end{array}$ 
C) 
$\begin{array}{l|l}
{\text { Supplies }} \
\hline  200&
\end{array}$$\begin{array}{l}
\text { Accounts payable }\
\begin{array}{r|r}
\hline &200 &
\end{array}
\end{array}$ 
D) 
$\begin{array}{l|l}
{\text { Supplies }} \
\hline  &200&
\end{array}$$\begin{array}{l}
\text { Accounts payable }\
\begin{array}{r|r}
\hline &200 &
\end{array}
\end{array}$

Question 9

Which of the following journal entries would be recorded if Jane Brown started a business,and then deposited cash of $6,000 into the business's bank account?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 6,000 & \
\hline \text { Jane Brown, capital } & & 6,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | r | r | } 
\hline \text { Accounts payable } & 6,000 & \
\hline \text { Cash } & & 6,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Jane Brown, capital } & 6,000 & \
\hline \text { Cash } & & 6,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | c | r | r | } 
\hline \text { Jane Brown, capital } & 6,000 & \
\hline \text { Accounts payable } & & 6,000 \
\hline
\end{array}$$

Question 10

A business has the following transactions: The business is started by receiving $20,000 from the owner.The business purchases $500 of supplies on account.The business purchases $2,000 of furniture on account.The business renders services to various clients totaling $9,000 on account.The business pays out $2,000 for Salary expense and $3,000 for Rent expense.The business pays $500 to supplier for the supplies purchased earlier.The business collects $1,500 from one of its clients for services rendered earlier in the month.At the end of the month,all journal entries are posted to the ledger.The Accounts payable account will appear as follows:

Accepted Answer

A) 
$$\begin{array}{l}
\text { Accounts payable }\
\begin{array} { r | r } 
\hline & 500 \
& 2,000 \
\hline& 2,500
\end{array}
\end{array}$$ 
B) 
$$\begin{array}{l}
\text { Accounts payable }\
\begin{array} { r | r } 
\hline & \
& 500 \
& 2,000 \
& 500 \
\hline & 3,000
\end{array}
\end{array}$$ 
C) 
$$\begin{array}{l}
\text { Accounts payable }\
\begin{array} { r | r } 
\hline 2,000 & \
500 & \
& 500 \
\hline 2,000 &
\end{array}
\end{array}$$ 
D) 
$$\begin{array}{l}
\text { Accounts payable }\
\begin{array} { r | r } 
\hline & 500 \
& 2,000 \
500 & \
\hline & 2,000
\end{array}
\end{array}$$

Question 11

In a trial balance,total debits are always equal to total credits.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is FALSE?

Accepted Answer

A)  A trial balance shows total debits and total credits. 
B)  A trial balance presents data in debit and credit format, but a balance sheet does not. 
C)  A trial balance shows total amounts for assets, liabilities, and equity. 
D)  A trial balance is created before the balance sheet is prepared.

Question 13

In a previous month,the business purchased supplies for $800 on account.Now the business makes a cash payment of $800 to the supplier.Please provide the journal entry (debits first,credits second.)
 $$\begin{array} { | l | r | r | } 
\hline \quad\quad\quad&\quad&\quad \
\hline \
\hline
\end{array}$$

Accepted Answer

The answer of In a previous month,the business purchased supplies...

Question 14

The trial balance is generally used only inside the business and is not published with the other financial statements.

Accepted Answer

A) True 
 B)False

Question 15

A journal is a chronological record of transactions.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is NOT part of owner's equity?

Accepted Answer

A)  Accounts receivable 
B)  Capital 
C)  Notes payable 
D)  Both A and C

Question 17

Which of the following is the last step of journalizing an entry?

Accepted Answer

A)  Post the accounts to the ledger. 
B)  Identify each account affected and its type. 
C)  Record the transaction in the journal, including a brief explanation. 
D)  Determine whether each account has increased or decreased.

Question 18

Which of the following journal entries would be recorded if a business purchases equipment for $2,500 cash and supplies for $450 cash?

Accepted Answer

A)  $\begin{array}{|l|r|r|}
\hline \text { Equipment } & 2,950 \
\hline \text { Cash } & & 2,500 \
\hline \text { Supplies } & & 450 \
\hline
\end{array}$ 
B)  $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 2,500 & \
\hline \text { Equipment } & 450 & \
\hline \text { Accounts receivable } & & 2,950 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | r | r | r | } 
\hline \text { Cash } & 2,950 & \
\hline \text { Equipment } & & 2,500 \
\hline \text { Supplies } & & 450 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Equipment } & 2,500 & \
\hline \text { Supplies } & 450 & \
\hline \text { Cash } & & 2,950 \
\hline
\end{array}$$

Question 19

Which of the following accounts is a liability?

Accepted Answer

A)  Accounts payable 
B)  Prepaid expenses 
C)  Salary expense 
D)  Service revenue

Question 20

A business pays salary expense of $4,000 in cash.Please provide the journal entry (debits first,credits second.)
 $$\begin{array} { | l | r | r | } 
\hline \quad\quad\quad&\quad&\quad \
\hline \
\hline
\end{array}$$

Accepted Answer

The answer of A business pays salary expense of $4,000...

Exam 2: Recording Business Transactions

A business renders services to a customer for $16,000 on account.Which account is debited?

A business purchases equipment by paying cash of $8,000 and issuing a note payable of $12,000.Which of the following occurs?

Which of the following accounts is an asset?

A business makes a cash payment of $12,000 to a creditor.Which account is debited?

The normal sequence of information flow in an accounting system is:

A business renders services to a customer for $16,000 on account.Which account is credited?

Which of the following journal entries would be recorded if Jane Brown started a business,and then deposited cash of $6,000 into the business's bank account?

In a trial balance,total debits are always equal to total credits.

Which of the following statements is FALSE?

In a previous month,the business purchased supplies for $800 on account.Now the business makes a cash payment of $800 to the supplier.Please provide the journal entry (debits first,credits second.) $\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$

The trial balance is generally used only inside the business and is not published with the other financial statements.

A journal is a chronological record of transactions.

Which of the following is NOT part of owner's equity?

Which of the following is the last step of journalizing an entry?

Which of the following journal entries would be recorded if a business purchases equipment for $2,500 cash and supplies for $450 cash?

Which of the following accounts is a liability?

A business pays salary expense of $4,000 in cash.Please provide the journal entry (debits first,credits second.) $\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$

Exam 2: Recording Business Transactions

A business renders services to a customer for $16,000 on account.Which account is debited?

A business purchases equipment by paying cash of $8,000 and issuing a note payable of $12,000.Which of the following occurs?

Which of the following accounts is an asset?

A business makes a cash payment of $12,000 to a creditor.Which account is debited?

The normal sequence of information flow in an accounting system is:

A business renders services to a customer for $16,000 on account.Which account is credited?

Which of the following journal entries would be recorded if Jane Brown started a business,and then deposited cash of $6,000 into the business's bank account?

In a trial balance,total debits are always equal to total credits.

Which of the following statements is FALSE?

In a previous month,the business purchased supplies for $800 on account.Now the business makes a cash payment of $800 to the supplier.Please provide the journal entry (debits first,credits second.) \begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}​​

The trial balance is generally used only inside the business and is not published with the other financial statements.

A journal is a chronological record of transactions.

Which of the following is NOT part of owner's equity?

Which of the following is the last step of journalizing an entry?

Which of the following journal entries would be recorded if a business purchases equipment for $2,500 cash and supplies for $450 cash?

Which of the following accounts is a liability?

A business pays salary expense of $4,000 in cash.Please provide the journal entry (debits first,credits second.) \begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}​​

In a previous month,the business purchased supplies for $800 on account.Now the business makes a cash payment of $800 to the supplier.Please provide the journal entry (debits first,credits second.) $\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$

A business pays salary expense of $4,000 in cash.Please provide the journal entry (debits first,credits second.) $\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$