Question 1

The ________ indicates where the information originated and to where the information was transferred.

Accepted Answer

A) general journal 
B) Balance Sheet 
C) general ledger 
D) posting reference 
A) general journal 
B) Balance Sheet 
C) general ledger 
D) posting reference

Question 2

Collection of money from a cash customer represents a(n):

Accepted Answer

A) liability. 
B) expense. 
C) revenue. 
D) stock. 
A) liability. 
B) expense. 
C) revenue. 
D) stock.

Question 3

Revenues, Accounts Receivable, and Common Stock have normal balances of:

Accepted Answer

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

Question 4

Cash, Common Stock, and Advertising Expense have normal balances of:

Accepted Answer

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

Question 5

The account "Accounts Receivable" began with a zero balance and then had the following changes: increase of $625, decrease of $275, increase of $350 and increase of $200. The final balance is a:

Accepted Answer

A) credit balance of $900. 
B) debit balance of $900. 
C) credit balance of $1,450. 
D) debit balance of $1,450. 
A) credit balance of $900. 
B) debit balance of $900. 
C) credit balance of $1,450. 
D) debit balance of $1,450.

Question 6

If a journal entry is recorded twice, both entries must be reversed in order to correct the error.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is NOT an asset?

Accepted Answer

A) Revenues 
B) Accounts Receivable 
C) Prepaid Rent 
D) All of the above are assets. 
A) Revenues 
B) Accounts Receivable 
C) Prepaid Rent 
D) All of the above are assets.

Question 8

The account "Accounts Payable" began with a zero balance and then had the following changes: increase of $250, increase of $600, decrease of $225, and an increase of $375. The final balance is a:

Accepted Answer

A) credit balance of $1,000. 
B) debit balance of $1,000. 
C) credit balance of $1,450. 
D) debit balance of $1,450. 
A) credit balance of $1,000. 
B) debit balance of $1,000. 
C) credit balance of $1,450. 
D) debit balance of $1,450.

Question 9

A trial balance contains the name of the company, the words "trial balance" and the date of the statement.

Accepted Answer

A) True 
 B)False

Question 10

A company has a $26,329 debit balance in the payable accounts. Given this information, which of the following is a TRUE statement?

Accepted Answer

A) It is NOT normal for payable accounts to have a debit balance 
B) Not enough information provided, since normal account balances are different for each company. 
C) Payable accounts don't tend to run this high, so this is not a normal balance. 
D) It is ALWAYS normal for payable accounts to have a debit balance. 
A) It is NOT normal for payable accounts to have a debit balance 
B) Not enough information provided, since normal account balances are different for each company. 
C) Payable accounts don't tend to run this high, so this is not a normal balance. 
D) It is ALWAYS normal for payable accounts to have a debit balance.

Question 11

When the bank takes money out of a company's account, why does the bank say that they have debited that account?

Accepted Answer

A) The bank has increased the company's assets and assets increase with debits. 
B) The bank has decreased its' liability to the company and liabilities decrease with debits. 
C) The bank has decreased the company's assets and assets decrease with debits. 
D) The bank has increased its' liability to the company and liabilities increase with debits. 
A) The bank has increased the company's assets and assets increase with debits. 
B) The bank has decreased its' liability to the company and liabilities decrease with debits. 
C) The bank has decreased the company's assets and assets decrease with debits. 
D) The bank has increased its' liability to the company and liabilities increase with debits.

Question 12

A T-account has a $864 credit balance. This account is most likely:

Accepted Answer

A) Office Equipment. 
B) Rent Expense. 
C) Dividends. 
D) Sales Revenue. 
A) Office Equipment. 
B) Rent Expense. 
C) Dividends. 
D) Sales Revenue.

Question 13

Once the trial balance is correct, the next step is to prepare the financial statements, beginning with the Income Statement.

Accepted Answer

A) True 
 B)False

Question 14

Fischers, Inc. paid $1,200 of dividends. The journal entry would require:

Accepted Answer

A) debit to Cash, credit to Dividends 
B) debit to Dividends, credit to Cash. 
C) debit to Dividends, credit to Accounts Payable 
D) debit to Accounts Payable, credit to Dividends 
A) debit to Cash, credit to Dividends 
B) debit to Dividends, credit to Cash. 
C) debit to Dividends, credit to Accounts Payable 
D) debit to Accounts Payable, credit to Dividends

Question 15

A T-account is a way to visualize the increases and decreases to the value of an account.

Accepted Answer

A) True 
 B)False

Question 16

Debit means:

Accepted Answer

A) decrease. 
B) increase. 
C) the right side of an account. 
D) the left side of an account. 
A) decrease. 
B) increase. 
C) the right side of an account. 
D) the left side of an account.

Question 17

Alaska Alehouse purchased a $700 two-year insurance policy for cash. The journal entry would require a:

Accepted Answer

A) debit to Prepaid Insurance and a credit to Cash. 
B) debit to Insurance Expense and credit to Cash. 
C) debit to Insurance Expense and a credit to Accounts Payable. 
D) debit to Insurance Expense and a credit to Retained Earnings. 
A) debit to Prepaid Insurance and a credit to Cash. 
B) debit to Insurance Expense and credit to Cash. 
C) debit to Insurance Expense and a credit to Accounts Payable. 
D) debit to Insurance Expense and a credit to Retained Earnings.

Question 18

A T-account has a $698 credit balance. This account is most likely NOT:

Accepted Answer

A) Accounts Payable. 
B) Sales Revenue. 
C) Accounts Receivable. 
D) Common Stock. 
A) Accounts Payable. 
B) Sales Revenue. 
C) Accounts Receivable. 
D) Common Stock.

Question 19

Transactions are recorded in order of the dollar amount of the transaction.

Accepted Answer

A) True 
 B)False

Question 20

The order in which accounts appear in the chart of accounts is:

Accepted Answer

A) liabilities, assets, revenues, Stockholders' Equity, expenses. 
B) Stockholders' Equity, expenses, revenue, liabilities, assets. 
C) assets, Stockholders' Equity, revenues, expenses, liabilities. 
D) Assets, Liabilities, Stockholders' Equity, revenues, expenses. 
A) liabilities, assets, revenues, Stockholders' Equity, expenses. 
B) Stockholders' Equity, expenses, revenue, liabilities, assets. 
C) assets, Stockholders' Equity, revenues, expenses, liabilities. 
D) Assets, Liabilities, Stockholders' Equity, revenues, expenses.

The ________ indicates where the information originated and to where the information was transferred.

Collection of money from a cash customer represents a(n):

Revenues, Accounts Receivable, and Common Stock have normal balances of:

Cash, Common Stock, and Advertising Expense have normal balances of:

The account "Accounts Receivable" began with a zero balance and then had the following changes: increase of $625, decrease of $275, increase of $350 and increase of $200. The final balance is a:

If a journal entry is recorded twice, both entries must be reversed in order to correct the error.

Which of the following is NOT an asset?

The account "Accounts Payable" began with a zero balance and then had the following changes: increase of $250, increase of $600, decrease of $225, and an increase of $375. The final balance is a:

A trial balance contains the name of the company, the words "trial balance" and the date of the statement.

A company has a $26,329 debit balance in the payable accounts. Given this information, which of the following is a TRUE statement?

When the bank takes money out of a company's account, why does the bank say that they have debited that account?

A T-account has a $864 credit balance. This account is most likely:

Once the trial balance is correct, the next step is to prepare the financial statements, beginning with the Income Statement.

Fischers, Inc. paid $1,200 of dividends. The journal entry would require:

A T-account is a way to visualize the increases and decreases to the value of an account.

Debit means:

Alaska Alehouse purchased a $700 two-year insurance policy for cash. The journal entry would require a:

A T-account has a $698 credit balance. This account is most likely NOT:

Transactions are recorded in order of the dollar amount of the transaction.

The order in which accounts appear in the chart of accounts is:

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

The ________ indicates where the information originated and to where the information was transferred.

Collection of money from a cash customer represents a(n):

Revenues, Accounts Receivable, and Common Stock have normal balances of:

Cash, Common Stock, and Advertising Expense have normal balances of:

The account "Accounts Receivable" began with a zero balance and then had the following changes: increase of $625, decrease of $275, increase of $350 and increase of $200. The final balance is a:

If a journal entry is recorded twice, both entries must be reversed in order to correct the error.

Which of the following is NOT an asset?

The account "Accounts Payable" began with a zero balance and then had the following changes: increase of $250, increase of $600, decrease of $225, and an increase of $375. The final balance is a:

A trial balance contains the name of the company, the words "trial balance" and the date of the statement.

A company has a $26,329 debit balance in the payable accounts. Given this information, which of the following is a TRUE statement?

When the bank takes money out of a company's account, why does the bank say that they have debited that account?

A T-account has a $864 credit balance. This account is most likely:

Once the trial balance is correct, the next step is to prepare the financial statements, beginning with the Income Statement.

Fischers, Inc. paid $1,200 of dividends. The journal entry would require:

A T-account is a way to visualize the increases and decreases to the value of an account.

Debit means:

Alaska Alehouse purchased a $700 two-year insurance policy for cash. The journal entry would require a:

A T-account has a $698 credit balance. This account is most likely NOT:

Transactions are recorded in order of the dollar amount of the transaction.

The order in which accounts appear in the chart of accounts is:

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