Question 1

Which of the following is NOT a liability?

Accepted Answer

A) Accounts Payable 
B) Interest Payable 
C) Rent Expense 
D) All of the above are liabilities. 
A) Accounts Payable 
B) Interest Payable 
C) Rent Expense 
D) All of the above are liabilities.

Question 2

Land, Cash, Office Equipment and Accounts Receivable belong to what category of accounts?

Accepted Answer

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

Question 3

Items such as salaries and interest that have been incurred, but not yet paid, are called:

Accepted Answer

A) accrued assets. 
B) accrued liabilities. 
C) accrued revenues. 
D) accrued notes. 
A) accrued assets. 
B) accrued liabilities. 
C) accrued revenues. 
D) accrued notes.

Question 4

An example of accounts with normal credit balances would be:

Accepted Answer

A) revenues. 
B) assets. 
C) expenses. 
D) dividends. 
A) revenues. 
B) assets. 
C) expenses. 
D) dividends.

Question 5

The columns on a trial balance represent:

Accepted Answer

A) revenues and expenses. 
B) debits and credits. 
C) common stock and dividends. 
D) subtotals and totals. 
A) revenues and expenses. 
B) debits and credits. 
C) common stock and dividends. 
D) subtotals and totals.

Question 6

Which of the following is an unofficial tool of accounting?

Accepted Answer

A) Account 
B) T-account 
C) Debit 
D) Credit 
A) Account 
B) T-account 
C) Debit 
D) Credit

Question 7

Accounts Payable, Taxes Payable, and Notes Payable:

Accepted Answer

A) increase on the debit side, decrease on the credit side and are assets. 
B) decrease on the debit side, increase on the credit side and are liabilities. 
C) increase on the debit side, decrease on the credit side and are expenses. 
D) decrease on the debit side, increase on the credit side and are revenues. 
A) increase on the debit side, decrease on the credit side and are assets. 
B) decrease on the debit side, increase on the credit side and are liabilities. 
C) increase on the debit side, decrease on the credit side and are expenses. 
D) decrease on the debit side, increase on the credit side and are revenues.

Question 8

The difference between the total debits and total credits of an account is called a:

Accepted Answer

A) trial balance. 
B) sub-total. 
C) ruling. 
D) balance. 
A) trial balance. 
B) sub-total. 
C) ruling. 
D) balance.

Question 9

Obligations owed by a company to banks, for instance, are called:

Accepted Answer

A) Notes Receivable. 
B) Notes Payable. 
C) Accounts Receivable. 
D) Accounts Payable. 
A) Notes Receivable. 
B) Notes Payable. 
C) Accounts Receivable. 
D) Accounts Payable.

Question 10

Monet Designs provided services to a client on account. The journal entry would require:

Accepted Answer

A) debit to Cash, credit to Service Revenue. 
B) debit to Service Revenue, credit to Accounts Receivable. 
C) debit to Accounts Receivable, credit to Service Revenue. 
D) debit to Service Revenue, credit to Accounts Receivable 
A) debit to Cash, credit to Service Revenue. 
B) debit to Service Revenue, credit to Accounts Receivable. 
C) debit to Accounts Receivable, credit to Service Revenue. 
D) debit to Service Revenue, credit to Accounts Receivable

Question 11

Dividends, Accounts Receivable, and Buildings have normal balances of:

Accepted Answer

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

Question 12

The purpose of the trial balance is to:

Accepted Answer

A) summarize all account balances. 
B) determine that account balances are correct. 
C) verify that total debits equal total credits. 
D) all of the above. 
E) A and C both pertain to the purpose of the trial balance. 
A) summarize all account balances. 
B) determine that account balances are correct. 
C) verify that total debits equal total credits. 
D) all of the above. 
E) A and C both pertain to the purpose of the trial balance.

Question 13

The account "Salaries Expense" began with a zero balance and then had the following changes: increase of $550, decrease of $275, increase of $600, and an increase of $375. The final balance is a:

Accepted Answer

A) credit balance of $1,250. 
B) debit balance of $1,250. 
C) credit balance of $1,800. 
D) debit balance of $1,800. 
A) credit balance of $1,250. 
B) debit balance of $1,250. 
C) credit balance of $1,800. 
D) debit balance of $1,800.

Question 14

The third step in analyzing a transaction is to determine:

Accepted Answer

A) if the account balance will increase or decrease. 
B) the accounts that are involved. 
C) the type of accounts that are involved. 
D) which accounts are to be debited and credited. 
A) if the account balance will increase or decrease. 
B) the accounts that are involved. 
C) the type of accounts that are involved. 
D) which accounts are to be debited and credited.

Question 15

A chart of accounts does NOT include:

Accepted Answer

A) Stockholders' Equity. 
B) assets. 
C) names of customers. 
D) liabilities. 
A) Stockholders' Equity. 
B) assets. 
C) names of customers. 
D) liabilities.

Question 16

Items of value that a company owns are called Stockholders' Equity.

Accepted Answer

A) True 
 B)False

Question 17

A trial balance is a list of the accounts and their balances taken from the general journal.

Accepted Answer

A) True 
 B)False

Question 18

A business generally has fewer liability accounts than asset accounts.

Accepted Answer

A) True 
 B)False

Question 19

The purpose of the trial balance is to verify that all account balances are correct.

Accepted Answer

A) True 
 B)False

Question 20

The second step in analyzing a transaction is to determine:

Accepted Answer

A) if the account balance will increase or decrease. 
B) the accounts that are involved. 
C) the type of accounts that are involved. 
D) which accounts are to be debited and credited. 
A) if the account balance will increase or decrease. 
B) the accounts that are involved. 
C) the type of accounts that are involved. 
D) which accounts are to be debited and credited.

Which of the following is NOT a liability?

Land, Cash, Office Equipment and Accounts Receivable belong to what category of accounts?

Items such as salaries and interest that have been incurred, but not yet paid, are called:

An example of accounts with normal credit balances would be:

The columns on a trial balance represent:

Which of the following is an unofficial tool of accounting?

Accounts Payable, Taxes Payable, and Notes Payable:

The difference between the total debits and total credits of an account is called a:

Obligations owed by a company to banks, for instance, are called:

Monet Designs provided services to a client on account. The journal entry would require:

Dividends, Accounts Receivable, and Buildings have normal balances of:

The purpose of the trial balance is to:

The account "Salaries Expense" began with a zero balance and then had the following changes: increase of $550, decrease of $275, increase of $600, and an increase of $375. The final balance is a:

The third step in analyzing a transaction is to determine:

A chart of accounts does NOT include:

Items of value that a company owns are called Stockholders' Equity.

A trial balance is a list of the accounts and their balances taken from the general journal.

A business generally has fewer liability accounts than asset accounts.

The purpose of the trial balance is to verify that all account balances are correct.

The second step in analyzing a transaction is to determine:

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

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Exam 2: Analyzing and Recording Business Transactions

Which of the following is NOT a liability?

Land, Cash, Office Equipment and Accounts Receivable belong to what category of accounts?

Items such as salaries and interest that have been incurred, but not yet paid, are called:

An example of accounts with normal credit balances would be:

The columns on a trial balance represent:

Which of the following is an unofficial tool of accounting?

Accounts Payable, Taxes Payable, and Notes Payable:

The difference between the total debits and total credits of an account is called a:

Obligations owed by a company to banks, for instance, are called:

Monet Designs provided services to a client on account. The journal entry would require:

Dividends, Accounts Receivable, and Buildings have normal balances of:

The purpose of the trial balance is to:

The account "Salaries Expense" began with a zero balance and then had the following changes: increase of $550, decrease of $275, increase of $600, and an increase of $375. The final balance is a:

The third step in analyzing a transaction is to determine:

A chart of accounts does NOT include:

Items of value that a company owns are called Stockholders' Equity.

A trial balance is a list of the accounts and their balances taken from the general journal.

A business generally has fewer liability accounts than asset accounts.

The purpose of the trial balance is to verify that all account balances are correct.

The second step in analyzing a transaction is to determine:

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