Question 1

Identify the normal balance for asset and liability accounts. What is the reasoning behind the "normal balances" for these accounts?

Accepted Answer

The answer of Identify the normal balance for asset and...

Question 2

A chronological record (or history) of an entity's transactions is called a(n):

Accepted Answer

A)  journal 
B)  account 
C)  source document 
D)  ledger

Question 3

The entry to record $500 received from a customer for services provided to that customer today would be:

Accepted Answer

A)   
B)   
C)   
D)

Question 4

Every transaction affects at least two accounts.

Accepted Answer

A) True 
 B)False

Question 5

A trial balance is a list of all of a company's accounts with their account numbers.

Accepted Answer

A) True 
 B)False

Question 6

Which type of account is credited when a company pays its employees?

Accepted Answer

A)  an expense account 
B)  an asset account 
C)  a liability account 
D)  the owners' equity account

Question 7

State the increase side (debit or credit) for each of the following accounts.
a. Inventory
b. Retained earnings
c. Cash
d. Accounts Payable
e. Dividends
f. Land
g. Supplies
h. Common Shares
i. Service Revenue
j. Accounts Receivable

Accepted Answer

The answer of State the increase side (debit or credit)...

Question 8

The entry to record the payment of $895 salary to employees would be:

Accepted Answer

A)   
B)   
C)   
D)

Question 9

If the credit amount of an entry to record the payment of salaries was not posted:

Accepted Answer

A)  expenses would be understated 
B)  assets would be overstated 
C)  shareholders' equity would be understated 
D)  expenses would be overstated

Question 10

Post the following journal entries to the appropriate T-accounts, and show the resulting balance in each account.

Accepted Answer

The answer of Post the following journal entries to the...

Question 11

In the journal you will find the total balance for each account.

Accepted Answer

A) True 
 B)False

Question 12

The account credited when cash is received from a customer on account is:

Accepted Answer

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

Question 13

Borrowing money from the bank by signing a note payable would:

Accepted Answer

A)  increase shareholders' equity 
B)  increase net income 
C)  decrease liabilities 
D)  have no effect on shareholders' equity

Question 14

The accounting transaction to record the payment of salaries to employees would include a:

Accepted Answer

A)  credit to Salary Expense 
B)  debit to Accounts Payable 
C)  debit to Salary Expense 
D)  debit to Cash

Question 15

Describe what is listed on a trial balance.

Accepted Answer

The answer of Describe what is listed on a trial...

Question 16

If a transposition error has occurred when recording a transaction, then the out-of-balance amount will be evenly divisible by:

Accepted Answer

A)  11 
B)  9 
C)  2 
D)  5

Question 17

The payment of an amount owed to a creditor would:

Accepted Answer

A)  increase assets 
B)  increase liabilities 
C)  decrease net income 
D)  decrease liabilities

Question 18

The account credited when supplies are purchased on account is:

Accepted Answer

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

Question 19

Sending out a cheque to settle a debt would include a:

Accepted Answer

A)  debit to Cash and a credit to Accounts Receivable 
B)  debit to Accounts Receivable and a credit to Cash 
C)  debit to Accounts Payable and a credit to Cash 
D)  debit to Accounts Payable and a credit to Accounts Receivable

Question 20

List the types of accounts that appear on the income statement. List the types of accounts that appear on the balance sheet.

Accepted Answer

The answer of List the types of accounts that appear...

Exam 2: Recording Business Transactions

Identify the normal balance for asset and liability accounts. What is the reasoning behind the "normal balances" for these accounts?

A chronological record (or history) of an entity's transactions is called a(n) :

The entry to record $500 received from a customer for services provided to that customer today would be:

Every transaction affects at least two accounts.

A trial balance is a list of all of a company's accounts with their account numbers.

Which type of account is credited when a company pays its employees?

State the increase side (debit or credit) for each of the following accounts. a. Inventory b. Retained earnings c. Cash d. Accounts Payable e. Dividends f. Land g. Supplies h. Common Shares i. Service Revenue j. Accounts Receivable

The entry to record the payment of $895 salary to employees would be:

If the credit amount of an entry to record the payment of salaries was not posted:

Post the following journal entries to the appropriate T-accounts, and show the resulting balance in each account.

In the journal you will find the total balance for each account.

The account credited when cash is received from a customer on account is:

Borrowing money from the bank by signing a note payable would:

The accounting transaction to record the payment of salaries to employees would include a:

Describe what is listed on a trial balance.

If a transposition error has occurred when recording a transaction, then the out-of-balance amount will be evenly divisible by:

The payment of an amount owed to a creditor would:

The account credited when supplies are purchased on account is:

Sending out a cheque to settle a debt would include a:

List the types of accounts that appear on the income statement. List the types of accounts that appear on the balance sheet.