Question 1

Recording service revenue on account as a cash transaction will cause:

Accepted Answer

A) accounts receivable to be overstated. 
B) owner's equity to be understated. 
C) cash to be overstated. 
D) service revenue to be understated. 
A) accounts receivable to be overstated. 
B) owner's equity to be understated. 
C) cash to be overstated. 
D) service revenue to be understated.

Question 2

The entry to record the purchase of supplies for $200 cash would be:

Accepted Answer

A)  $\begin{array} { | c | r | r | } 
\hline \text { Supplies } & 200 & \
\hline \text { Accounts Payable } & & 200 \
\hline
\end{array}$ 
B)  $\begin{array} { | c | r | r | } 
\hline \text { Cash } & 200 & \
\hline \text { Supplies } & & 200 \
\hline
\end{array}$ 
C)  $\begin{array} { | c | r | r | } 
\hline \text { Cash } & 200 & \
\hline \text { Supplies Expense } & & 200 \
\hline
\end{array}$ 
D)  $\begin{array} { | c | r | r | } 
\hline \text { Supplies } & 200 & \
\hline \text { Cash } & & 200 \
\hline
\end{array}$ 
A)  $\begin{array} { | c | r | r | } 
\hline \text { Supplies } & 200 & \
\hline \text { Accounts Payable } & & 200 \
\hline
\end{array}$ 
B)  $\begin{array} { | c | r | r | } 
\hline \text { Cash } & 200 & \
\hline \text { Supplies } & & 200 \
\hline
\end{array}$ 
C)  $\begin{array} { | c | r | r | } 
\hline \text { Cash } & 200 & \
\hline \text { Supplies Expense } & & 200 \
\hline
\end{array}$ 
D)  $\begin{array} { | c | r | r | } 
\hline \text { Supplies } & 200 & \
\hline \text { Cash } & & 200 \
\hline
\end{array}$

Question 3

An owner withdrawal of $20,000 cash would:

Accepted Answer

A) decrease owner's equity and increase assets by $20,000. 
B) increase owner's equity and decrease liabilities by $20,000. 
C) increase liabilities and assets by $20,000. 
D) decrease assets and owner's equity by $20,000. 
A) decrease owner's equity and increase assets by $20,000. 
B) increase owner's equity and decrease liabilities by $20,000. 
C) increase liabilities and assets by $20,000. 
D) decrease assets and owner's equity by $20,000.

Question 4

The normal balance of a liability is a ________ while the normal balance of revenue is a ________.

Accepted Answer

A) credit; debit 
B) debit; debit 
C) debit; credit 
D) credit; credit 
A) credit; debit 
B) debit; debit 
C) debit; credit 
D) credit; credit

Question 5

Describe the posting process and how it relates to the accounting process. Give an example in your discussion.

Accepted Answer

The posting process involves transferrin

Recording service revenue on account as a cash transaction will cause:

The entry to record the purchase of supplies for $200 cash would be:

An owner withdrawal of $20,000 cash would:

The normal balance of a liability is a while the normal balance of revenue is a .

Describe the posting process and how it relates to the accounting process. Give an example in your discussion.

Accounting and the Business Environment

Measuring Business Income: The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations and the Accounting Cycle

Accounting for Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Property, Plant, and Equipment; Goodwill; and Intangibles

Current Liabilities and Payroll

Filters

Exam 2: Recording Business Transactions

Recording service revenue on account as a cash transaction will cause:

The entry to record the purchase of supplies for $200 cash would be:

An owner withdrawal of $20,000 cash would:

The normal balance of a liability is a ________ while the normal balance of revenue is a ________.

Describe the posting process and how it relates to the accounting process. Give an example in your discussion.

Accounting and the Business Environment

Measuring Business Income: The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations and the Accounting Cycle

Accounting for Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Property, Plant, and Equipment; Goodwill; and Intangibles

Current Liabilities and Payroll

Filters

The normal balance of a liability is a while the normal balance of revenue is a .