Question 1

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 B

Question 2

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. C

Question 3

The Stockholders' Equity accounts Dividends,Revenues and Expenses have normal balances of:

Accepted Answer

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

Question 4

An investment of cash in a business:

Accepted Answer

A) represents an obligation of the business. 
B) decreases Stockholders' Equity. 
C) increases cash. 
D) appears in a liability account. 
A) represents an obligation of the business. 
B) decreases Stockholders' Equity. 
C) increases cash. 
D) appears in a liability account.

Question 5

Which is NOT a part of Stockholders' Equity?

Accepted Answer

A) Revenues 
B) Expenses 
C) Accounts Receivable 
D) Dividends 
A) Revenues 
B) Expenses 
C) Accounts Receivable 
D) Dividends

Question 6

A company accidentally records the rent payment twice in October.The effect on the trial balance will be:

Accepted Answer

A) debits will be more than credits. 
B) credits will be more than debits. 
C) debits will still be equal to credits. 
D) not enough information provided. 
A) debits will be more than credits. 
B) credits will be more than debits. 
C) debits will still be equal to credits. 
D) not enough information provided.

Question 7

How does an account receivable differ from a note receivable?

Accepted Answer

A) A note receivable is an asset while an account receivable is not. 
B) An account receivable is a written pledge while a note receivable is not. 
C) An account receivable is always an amount due from the company's customers while a note receivable is always an amount due from a bank. 
D) Notes receivable are written pledges while Accounts Receivable are not. 
A) A note receivable is an asset while an account receivable is not. 
B) An account receivable is a written pledge while a note receivable is not. 
C) An account receivable is always an amount due from the company's customers while a note receivable is always an amount due from a bank. 
D) Notes receivable are written pledges while Accounts Receivable are not.

Question 8

An example of accounts with normal debit balances would be:

Accepted Answer

A) liabilities. 
B) expenses. 
C) revenues. 
D) Stockholders' Equity. 
A) liabilities. 
B) expenses. 
C) revenues. 
D) Stockholders' Equity.

Question 9

A T-account has a $509 debit balance.This account is most likely NOT:

Accepted Answer

A) Common Stock. 
B) Land. 
C) Advertising Expense. 
D) Dividends. 
A) Common Stock. 
B) Land. 
C) Advertising Expense. 
D) Dividends.

Question 10

A cash payment was made to pay for delivery expenses,but was mistakenly charged to Advertising Expense.What effect will this have on the trial balance?

Accepted Answer

A) Advertising Expense will be understated. 
B) Delivery Expense will be overstated. 
C) The trial balance will still balance. 
D) Cash will be overstated. 
A) Advertising Expense will be understated. 
B) Delivery Expense will be overstated. 
C) The trial balance will still balance. 
D) Cash will be overstated.

Question 11

The account "Cash" began with a zero balance and then had the following changes: increase of $250,decrease of $75,increase of $113 and a decrease of $35.The final balance is a:

Accepted Answer

A) debit balance of $253. 
B) credit balance of $253. 
C) debit balance of $363. 
D) credit balance of $110. 
A) debit balance of $253. 
B) credit balance of $253. 
C) debit balance of $363. 
D) credit balance of $110.

Question 12

Which of the following is NOT a revenue account?

Accepted Answer

A) Salaries 
B) Sales 
C) Fees Earned 
D) Professional Fees 
A) Salaries 
B) Sales 
C) Fees Earned 
D) Professional Fees

Question 13

An account starting with a number 1 would indicate:

Accepted Answer

A) an asset. 
B) Stockholders' Equity. 
C) a revenue. 
D) a liability. 
A) an asset. 
B) Stockholders' Equity. 
C) a revenue. 
D) a liability.

Question 14

Obligations that are owed to others due to past transactions are categorized as:

Accepted Answer

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

Question 15

The account "Accounts Payable" began with a zero balance and then had the following changes: increase of $250,increase of $525,decrease of $175,and an increase of $300.The final balance is a:

Accepted Answer

A) credit balance of $900. 
B) debit balance of $900. 
C) credit balance of $1,250. 
D) debit balance of $1,250. 
A) credit balance of $900. 
B) debit balance of $900. 
C) credit balance of $1,250. 
D) debit balance of $1,250.

Question 16

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 17

A company has a forty million dollar 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.

Question 18

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 19

Expenses ________ Retained Earnings,and increase on the ________ side.

Accepted Answer

A) increase,debit 
B) increase,credit 
C) decrease,debit 
D) decrease,credit 
A) increase,debit 
B) increase,credit 
C) decrease,debit 
D) decrease,credit

Question 20

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

Accepted Answer

A) True 
 B)False

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

A chart of accounts does NOT include:

The Stockholders' Equity accounts Dividends,Revenues and Expenses have normal balances of:

An investment of cash in a business:

Which is NOT a part of Stockholders' Equity?

A company accidentally records the rent payment twice in October.The effect on the trial balance will be:

How does an account receivable differ from a note receivable?

An example of accounts with normal debit balances would be:

A T-account has a $509 debit balance.This account is most likely NOT:

A cash payment was made to pay for delivery expenses,but was mistakenly charged to Advertising Expense.What effect will this have on the trial balance?

The account "Cash" began with a zero balance and then had the following changes: increase of $250,decrease of $75,increase of $113 and a decrease of $35.The final balance is a:

Which of the following is NOT a revenue account?

An account starting with a number 1 would indicate:

Obligations that are owed to others due to past transactions are categorized as:

The account "Accounts Payable" began with a zero balance and then had the following changes: increase of $250,increase of $525,decrease of $175,and an increase of $300.The final balance is a:

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

A company has a forty million dollar credit balance in the cash account.Given this information,which of the following is a TRUE statement?

The purpose of the trial balance is to:

Expenses Retained Earnings,and increase on the side.

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

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

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

A chart of accounts does NOT include:

The Stockholders' Equity accounts Dividends,Revenues and Expenses have normal balances of:

An investment of cash in a business:

Which is NOT a part of Stockholders' Equity?

A company accidentally records the rent payment twice in October.The effect on the trial balance will be:

How does an account receivable differ from a note receivable?

An example of accounts with normal debit balances would be:

A T-account has a $509 debit balance.This account is most likely NOT:

A cash payment was made to pay for delivery expenses,but was mistakenly charged to Advertising Expense.What effect will this have on the trial balance?

The account "Cash" began with a zero balance and then had the following changes: increase of $250,decrease of $75,increase of $113 and a decrease of $35.The final balance is a:

Which of the following is NOT a revenue account?

An account starting with a number 1 would indicate:

Obligations that are owed to others due to past transactions are categorized as:

The account "Accounts Payable" began with a zero balance and then had the following changes: increase of $250,increase of $525,decrease of $175,and an increase of $300.The final balance is a:

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

A company has a forty million dollar credit balance in the cash account.Given this information,which of the following is a TRUE statement?

The purpose of the trial balance is to:

Expenses ________ Retained Earnings,and increase on the ________ side.

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

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

Expenses Retained Earnings,and increase on the side.