Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Chickadee,Inc paid $6,000 rent in advance.The journal entry would require:

Accepted Answer

A) debit to Cash,credit to Rent Expense. 
B) debit to Cash,credit to Prepaid Rent. 
C) debit to Rent Expense,credit to Cash. 
D) debit to Prepaid Rent,credit to Cash. 
A) debit to Cash,credit to Rent Expense. 
B) debit to Cash,credit to Prepaid Rent. 
C) debit to Rent Expense,credit to Cash. 
D) debit to Prepaid Rent,credit to Cash.

Question 3

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 4

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 5

Dividends,revenues,and Expenses all:

Accepted Answer

A) start with the same chart of account number. 
B) start with different chart of accounts numbers. 
C) appear in the chart of accounts under assets. 
D) appear in the chart of accounts under liabilities. 
A) start with the same chart of account number. 
B) start with different chart of accounts numbers. 
C) appear in the chart of accounts under assets. 
D) appear in the chart of accounts under liabilities.

Question 6

Which of the following would start with a 2 in the chart of accounts?

Accepted Answer

A) Income Taxes Payable and Salaries Payable 
B) Common Stock and Dividends 
C) Cash and Accounts Receivable 
D) Sales and Service Revenue 
A) Income Taxes Payable and Salaries Payable 
B) Common Stock and Dividends 
C) Cash and Accounts Receivable 
D) Sales and Service Revenue

Question 7

The third 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 8

Journalizing does NOT include:

Accepted Answer

A) debiting account(s)that are affected. 
B) crediting account(s)that are affected. 
C) posting the debits and credits to the accounts. 
D) entering the date of the transaction. 
A) debiting account(s)that are affected. 
B) crediting account(s)that are affected. 
C) posting the debits and credits to the accounts. 
D) entering the date of the transaction.

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

One of the customers of Jeter Roofing,Inc.paid $223 on her bill.The journal entry that Jeter Roofing,Inc.would record is:

Accepted Answer

A) debit Accounts Receivable and credit Sales. 
B) debit Cash and credit Sales. 
C) debit Accounts Receivable and credit Cash. 
D) debit Cash and credit Accounts Receivable. 
A) debit Accounts Receivable and credit Sales. 
B) debit Cash and credit Sales. 
C) debit Accounts Receivable and credit Cash. 
D) debit Cash and credit Accounts Receivable.

Question 11

The general journal is used to record the events (transactions)of a business.

Accepted Answer

A) True 
 B)False

Question 12

Accounts starting with the number 4 would represent:

Accepted Answer

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

Question 13

The posting reference column of the general journal will include the number of the account to which the information is being posted.

Accepted Answer

A) True 
 B)False

Question 14

The fact that each transaction has a dual effect on the accounting equation provides the basis for what is called:

Accepted Answer

A) single-entry accounting. 
B) double-entry accounting. 
C) compound-entry accounting. 
D) multiple-entry accounting. 
A) single-entry accounting. 
B) double-entry accounting. 
C) compound-entry accounting. 
D) multiple-entry accounting.

Question 15

Monies owed to a company on a written promise to pay a fixed amount of money by a certain date would be called a(n):

Accepted Answer

A) note payable. 
B) note receivable. 
C) account payable. 
D) account receivable. 
A) note payable. 
B) note receivable. 
C) account payable. 
D) account receivable.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Allied,Inc.sold season tickets for $7,000 on account.The journal entry would be to:

Accepted Answer

A) debit Cash and credit season Ticket Sales Revenue. 
B) debit Accounts Receivable and credit season Ticket Sales Revenue. 
C) debit Cash and credit Accounts Payable. 
D) debit Cash and credit Accounts Receivable. 
A) debit Cash and credit season Ticket Sales Revenue. 
B) debit Accounts Receivable and credit season Ticket Sales Revenue. 
C) debit Cash and credit Accounts Payable. 
D) debit Cash and credit Accounts Receivable.

Question 18

Rex's Roofing paid salaries of $1,500 with cash.The journal entry would require a:

Accepted Answer

A) debit to Cash,credit to Salary Payable. 
B) debit to Salary Expense,credit to Salary Payable. 
C) debit to Cash,credit to Salary Expense. 
D) debit to Salary Expense,credit to Cash. 
A) debit to Cash,credit to Salary Payable. 
B) debit to Salary Expense,credit to Salary Payable. 
C) debit to Cash,credit to Salary Expense. 
D) debit to Salary Expense,credit to Cash.

Question 19

Which of the following is an expense account?

Accepted Answer

A) Prepaid Insurance 
B) Advertising 
C) Accounts Payable 
D) Cash 
A) Prepaid Insurance 
B) Advertising 
C) Accounts Payable 
D) Cash

Question 20

The total amount of debits must equal the total amount of credits.This is a rule of:

Accepted Answer

A) T-accounts. 
B) the chart of accounts. 
C) double-entry accounting. 
D) normal balances. 
A) T-accounts. 
B) the chart of accounts. 
C) double-entry accounting. 
D) normal balances.

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

Chickadee,Inc paid $6,000 rent in advance.The journal entry would require:

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

Which of the following is an unofficial tool of accounting?

Dividends,revenues,and Expenses all:

Which of the following would start with a 2 in the chart of accounts?

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

Journalizing does NOT include:

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

One of the customers of Jeter Roofing,Inc.paid $223 on her bill.The journal entry that Jeter Roofing,Inc.would record is:

The general journal is used to record the events (transactions)of a business.

Accounts starting with the number 4 would represent:

The posting reference column of the general journal will include the number of the account to which the information is being posted.

The fact that each transaction has a dual effect on the accounting equation provides the basis for what is called:

Monies owed to a company on a written promise to pay a fixed amount of money by a certain date would be called a(n):

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

Allied,Inc.sold season tickets for $7,000 on account.The journal entry would be to:

Rex's Roofing paid salaries of $1,500 with cash.The journal entry would require a:

Which of the following is an expense account?

The total amount of debits must equal the total amount of credits.This is a rule of:

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

Chickadee,Inc paid $6,000 rent in advance.The journal entry would require:

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

Which of the following is an unofficial tool of accounting?

Dividends,revenues,and Expenses all:

Which of the following would start with a 2 in the chart of accounts?

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

Journalizing does NOT include:

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

One of the customers of Jeter Roofing,Inc.paid $223 on her bill.The journal entry that Jeter Roofing,Inc.would record is:

The general journal is used to record the events (transactions)of a business.

Accounts starting with the number 4 would represent:

The posting reference column of the general journal will include the number of the account to which the information is being posted.

The fact that each transaction has a dual effect on the accounting equation provides the basis for what is called:

Monies owed to a company on a written promise to pay a fixed amount of money by a certain date would be called a(n):

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

Allied,Inc.sold season tickets for $7,000 on account.The journal entry would be to:

Rex's Roofing paid salaries of $1,500 with cash.The journal entry would require a:

Which of the following is an expense account?

The total amount of debits must equal the total amount of credits.This is a rule of:

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