Question 1

Accounts Payable represent amounts a business must pay because it signed a written promissory note.

Accepted Answer

A) True 
 B)False

Question 2

An entry could have been posted twice and the trial balance might still balance.

Accepted Answer

A) True 
 B)False

Question 3

Marketing expenditures account 511 would belong to what category of accounts?

Accepted Answer

A) Assets 
B) Expenses 
C) Revenues 
D) Liabilities 
A) Assets 
B) Expenses 
C) Revenues 
D) Liabilities

Question 4

Once you post the transaction to the general ledger, you must go back to the general journal and fill in:

Accepted Answer

A) the date. 
B) the amount debited or credited. 
C) the posting reference column with the account number of the posting. 
D) the account name that was involved in the transaction. 
A) the date. 
B) the amount debited or credited. 
C) the posting reference column with the account number of the posting. 
D) the account name that was involved in the transaction.

Question 5

On the trial balance, which account balances should be listed in the credit column?

Accepted Answer

A) Liabilities, Retained Earnings, and Revenues 
B) Assets, Retained Earnings, and Expenses 
C) Liabilities, Common Stock, and Expenses 
D) Assets, Dividends, and Expenses 
A) Liabilities, Retained Earnings, and Revenues 
B) Assets, Retained Earnings, and Expenses 
C) Liabilities, Common Stock, and Expenses 
D) Assets, Dividends, and Expenses

Question 6

Accounts that increase on the credit side are Liabilities, Common Stock, Revenues and Retained Earnings (LCR).

Accepted Answer

A) True 
 B)False

Question 7

Net income and dividends are part of:

Accepted Answer

A) Revenues. 
B) Stockholders' Equity. 
C) Assets. 
D) Liabilities. 
A) Revenues. 
B) Stockholders' Equity. 
C) Assets. 
D) Liabilities.

Question 8

Sky Co. collected $600 from one of its customers for payment on their account. The journal entry would include a:

Accepted Answer

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

Question 9

The debit (left)side of an account always indicates an increase in the value of the account.

Accepted Answer

A) True 
 B)False

Question 10

If an account's total credits are more than its total debits, then it has a positive balance.

Accepted Answer

A) True 
 B)False

Question 11

The trial balance is an official financial statement.

Accepted Answer

A) True 
 B)False

Question 12

All payables are listed as:

Accepted Answer

A) assets. 
B) liabilities. 
C) Stockholders' Equity. 
D) revenue. 
A) assets. 
B) liabilities. 
C) Stockholders' Equity. 
D) revenue.

Question 13

The difference between total debits and total credits is known as the balance.

Accepted Answer

A) True 
 B)False

Question 14

An account numbered 321 would be considered a Stockholders' Equity account as it begins with a 3.

Accepted Answer

A) True 
 B)False

Question 15

Salaries of $1,025 were paid in cash. The journal entry would include a:

Accepted Answer

A) debit to Salaries Expense and a credit to Cash. 
B) credit to Salaries Expense and a debit to Cash. 
C) debit to Accounts Payable and a credit to Cash. 
D) debit to Accounts Payable and a credit to Salary Expense. 
A) debit to Salaries Expense and a credit to Cash. 
B) credit to Salaries Expense and a debit to Cash. 
C) debit to Accounts Payable and a credit to Cash. 
D) debit to Accounts Payable and a credit to Salary Expense.

Question 16

A company purchased supplies on account; however, the journal entry to record the purchase was a debit to Supplies for $200 and a credit to Cash for $200. What will the effect be on the trial balance?

Accepted Answer

A) There will be no effect on the trial balance. 
B) Debits will be $200 more than credits. 
C) Debits will be $200 less than credits. 
D) None of the above. 
A) There will be no effect on the trial balance. 
B) Debits will be $200 more than credits. 
C) Debits will be $200 less than credits. 
D) None of the above.

Question 17

The second step in recording a transaction in the general journal is to record the:

Accepted Answer

A) explanation of the entry. 
B) account(s)to be credited and the amount(s). 
C) date of the entry. 
D) account(s)to be debited and the amount(s). 
A) explanation of the entry. 
B) account(s)to be credited and the amount(s). 
C) date of the entry. 
D) account(s)to be debited and the amount(s).

Question 18

The first step in recording a transaction in the general journal is to record the:

Accepted Answer

A) explanation of the entry. 
B) account(s)to be credited and the amount(s). 
C) date of the entry. 
D) account(s)to be debited and the amount(s). 
A) explanation of the entry. 
B) account(s)to be credited and the amount(s). 
C) date of the entry. 
D) account(s)to be debited and the amount(s).

Question 19

The Caesar Coffee Company pays wages in the amount of $12,000. This transaction includes a credit to Wages Expense.

Accepted Answer

A) True 
 B)False

Question 20

A company has a $14,457 credit balance in the cash account. Given this information, which of the following is a TRUE statement?

Accepted Answer

A) This is NOT a normal account balance-companies don't normally have this much cash on hand. 
B) It is NOT normal for the cash account to have a credit balance. 
C) Not enough information provided, since normal account balances are different for each company. 
D) It is ALWAYS normal for the cash account to have a credit balance. 
A) This is NOT a normal account balance-companies don't normally have this much cash on hand. 
B) It is NOT normal for the cash account to have a credit balance. 
C) Not enough information provided, since normal account balances are different for each company. 
D) It is ALWAYS normal for the cash account to have a credit balance.

Accounts Payable represent amounts a business must pay because it signed a written promissory note.

An entry could have been posted twice and the trial balance might still balance.

Marketing expenditures account 511 would belong to what category of accounts?

Once you post the transaction to the general ledger, you must go back to the general journal and fill in:

On the trial balance, which account balances should be listed in the credit column?

Accounts that increase on the credit side are Liabilities, Common Stock, Revenues and Retained Earnings (LCR).

Net income and dividends are part of:

Sky Co. collected $600 from one of its customers for payment on their account. The journal entry would include a:

The debit (left)side of an account always indicates an increase in the value of the account.

If an account's total credits are more than its total debits, then it has a positive balance.

The trial balance is an official financial statement.

All payables are listed as:

The difference between total debits and total credits is known as the balance.

An account numbered 321 would be considered a Stockholders' Equity account as it begins with a 3.

Salaries of $1,025 were paid in cash. The journal entry would include a:

A company purchased supplies on account; however, the journal entry to record the purchase was a debit to Supplies for $200 and a credit to Cash for $200. What will the effect be on the trial balance?

The second step in recording a transaction in the general journal is to record the:

The first step in recording a transaction in the general journal is to record the:

The Caesar Coffee Company pays wages in the amount of $12,000. This transaction includes a credit to Wages Expense.

A company has a $14,457 credit balance in the cash account. Given this information, which of the following is a TRUE statement?

Business, Accounting, and You

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Analyzing and Recording Business Transactions

Accounts Payable represent amounts a business must pay because it signed a written promissory note.

An entry could have been posted twice and the trial balance might still balance.

Marketing expenditures account 511 would belong to what category of accounts?

Once you post the transaction to the general ledger, you must go back to the general journal and fill in:

On the trial balance, which account balances should be listed in the credit column?

Accounts that increase on the credit side are Liabilities, Common Stock, Revenues and Retained Earnings (LCR).

Net income and dividends are part of:

Sky Co. collected $600 from one of its customers for payment on their account. The journal entry would include a:

The debit (left)side of an account always indicates an increase in the value of the account.

If an account's total credits are more than its total debits, then it has a positive balance.

The trial balance is an official financial statement.

All payables are listed as:

The difference between total debits and total credits is known as the balance.

An account numbered 321 would be considered a Stockholders' Equity account as it begins with a 3.

Salaries of $1,025 were paid in cash. The journal entry would include a:

A company purchased supplies on account; however, the journal entry to record the purchase was a debit to Supplies for $200 and a credit to Cash for $200. What will the effect be on the trial balance?

The second step in recording a transaction in the general journal is to record the:

The first step in recording a transaction in the general journal is to record the:

The Caesar Coffee Company pays wages in the amount of $12,000. This transaction includes a credit to Wages Expense.

A company has a $14,457 credit balance in the cash account. Given this information, which of the following is a TRUE statement?

Business, Accounting, and You

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters