Question 1

The first step of journalizing an entry is to:

Accepted Answer

A)  post the accounts to the ledger. 
B)  identify each account affected and its type. 
C)  determine whether each account is increased or decreased. 
D)  record the transaction in the journal, including a brief explanation. 
A)  post the accounts to the ledger. 
B)  identify each account affected and its type. 
C)  determine whether each account is increased or decreased. 
D)  record the transaction in the journal, including a brief explanation. B

Question 2

Which of the following is the detailed record of the changes in a particular asset,liability,or owner's equity?

Accepted Answer

A)  Journal 
B)  Trial balance 
C)  Ledger 
D)  Account 
A)  Journal 
B)  Trial balance 
C)  Ledger 
D)  Account D

Question 3

ABC Services reported the following transactions for September,2013.
A.The owner opened the business with a capital contribution of $23,500 cash.It was credited to Capital.
B.The business purchased office equipment for $11,500.The business paid cash of $2,500 down and put the balance on a note payable.
C.The business purchased $1,350 of supplies on account.
D.The business paid a utility bill for $980 cash.
E.The business paid $2,000 cash for September rent.
F.The business had sales of $20,000 in September.Of these sales,60% were cash sales,and the balance was credit sales.
G.The business paid $9,700 cash for office furniture.
What is the total amount in the Cash account at the end of September,2013?
A)$15,520
B)$20,320
C)$28,320
D)$18,970

Accepted Answer

B

Question 4

Thermo HVAC is a heating and air conditioning service business.On December 31,2010,after its first month of business,Thermo HVAC had the following balances in its accounts,listed alphabetically.
 $\begin{array}{|l|r|}
\hline\text { Accounts receivable } & 4,100 \
\hline \text { Accounts payable } & 22,000 \
\hline \text { Advertising expense } & 1,600 \
\hline \text { Building } & 17,000 \
\hline \text { Cash } & ? ? ? \
\hline \text { Capital } & 45,000 \
\hline \text { Withdrawals } & 1,800 \
\hline \text { Equipment } & 1,800 \
\hline \text { Land } & 67,000 \
\hline \text { Note payable } & 58,000 \
\hline \text { Salary expense } & 1,800 \
\hline \text { Service revenue } & 62,000 \
\hline \text { Supplies } & 2,900 \
\hline \text { Utilities expense } & 4,200\\hline
\end{array}$ Determine the balance in the cash account and prepare a trial balance using proper format.
 $$\begin{array} { | l | l | l | } 
\hline \text { Account Title } & \text { Debit } & \text { Credit } \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline
\end{array}$$

Accepted Answer

This question is no

Question 5

For Expenses,the category of account and its normal balance are:

Accepted Answer

A)  Owner's equity and a credit balance. 
B)  Assets and a debit balance. 
C)  Liabilities and a credit balance. 
D)  Owner's equity and a debit balance. 
A)  Owner's equity and a credit balance. 
B)  Assets and a debit balance. 
C)  Liabilities and a credit balance. 
D)  Owner's equity and a debit balance.

Question 6

A business makes a cash payment of $12,000 to a creditor.Which account is credited?

Accepted Answer

A)  Cash 
B)  Accounts payable 
C)  Service revenue 
D)  Accounts receivable 
A)  Cash 
B)  Accounts payable 
C)  Service revenue 
D)  Accounts receivable

Question 7

A business makes a cash payment for advertising expense.Which account is debited?

Accepted Answer

A)  Cash 
B)  Service revenue 
C)  Accounts receivable 
D)  Advertising expense 
A)  Cash 
B)  Service revenue 
C)  Accounts receivable 
D)  Advertising expense

Question 8

At the end of a month,a business shows the following balances in its ledger.   Please use this data to prepare a trial balance.
 $$\begin{array} { | l | c | c | } \hline { \text { Account Title } } & \text { Debit } & \text { Credit } \
\hline \quad\quad\quad&\quad\quad\quad&\quad\quad\
\hline \quad\quad\quad&\quad\quad\quad&\quad\quad\
\hline \quad\quad\quad&\quad\quad\quad&\quad\quad\
\hline \quad\quad\quad&\quad\quad\quad&\quad\quad\
\hline \quad\quad\quad&\quad\quad\quad&\quad\quad\
\hline \quad\quad\quad&\quad\quad\quad&\quad\quad\
\hline \quad\quad\quad&\quad\quad\quad&\quad\quad\\hline \quad\quad\quad&\quad\quad\quad&\quad\quad\\hline \quad\quad\quad&\quad\quad\quad&\quad\quad\
\hline \quad\quad\quad&\quad\quad\quad&\quad\quad\\hline \quad\quad\quad&\quad\quad\quad&\quad\quad\\hline \quad\quad\quad&\quad\quad\quad&\quad\quad\\hline \quad\quad\quad&\quad\quad\quad&\quad\quad\\hline \quad\quad\quad&\quad\quad\quad&\quad\quad\
\hline
\end{array}$$

Accepted Answer

This question is no

Question 9

Which of the following is a method used to detect errors when the two columns of the trial balance are NOT equal?

Accepted Answer

A)  Compute the difference in the columns and search the trial balance for a transposition error or a slide error if the difference is evenly divisible by 9. 
B)  Compute the difference in the columns, divide the difference between total debits and total credits by 2 and search for a debit shown as a credit, or vice versa. 
C)  Compute the difference in the columns and search for a missing account with that balance. 
D)  All of the above are suggested methods for detecting errors. 
A)  Compute the difference in the columns and search the trial balance for a transposition error or a slide error if the difference is evenly divisible by 9. 
B)  Compute the difference in the columns, divide the difference between total debits and total credits by 2 and search for a debit shown as a credit, or vice versa. 
C)  Compute the difference in the columns and search for a missing account with that balance. 
D)  All of the above are suggested methods for detecting errors.

Question 10

The following are the ending month's balances for Toys Galore,before preparing the trial balance. $\begin{array}{|l|r|}
\hline \text { Accounts payable } & \$ 6,790 \
\hline \text { Revenues } & 8,680 \
\hline \text { Cash } & 4,500 \
\hline \text { Expenses } & 1,050\
\hline \text { Furniture } & 8,370 \
\hline \text { Accounts receivable } & 7,710 \
\hline \text { Capital } & ? ? ? \
\hline \text { Notes payable } & 5,230\\hline
\end{array}$ What amount should be shown for Capital on the trial balance?
A) $930
B) $16,190
C) $42,330
D) $21,165

Accepted Answer

A) Calculations: $4

Question 11

For Cash,the category of account and its normal balance are:

Accepted Answer

A)  Assets and a debit balance. 
B)  Liabilities and a credit balance. 
C)  Owner's equity and a credit balance. 
D)  Assets and a credit balance. 
A)  Assets and a debit balance. 
B)  Liabilities and a credit balance. 
C)  Owner's equity and a credit balance. 
D)  Assets and a credit balance.

Question 12

Which of the following journal entries would be recorded if a business makes a cash payment to a supplier of $600 "on account" (the business had purchased supplies on account in the previous month)?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 600 & \
\hline \text { Accounts payable } & & 600 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts payable } & 600 & \
\hline \text { Cash } & & 600 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 600 & \
\hline \text { Supplies } & & 600 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts payable } & 600 & \
\hline \text { Supplies } & & 600 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 600 & \
\hline \text { Accounts payable } & & 600 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts payable } & 600 & \
\hline \text { Cash } & & 600 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 600 & \
\hline \text { Supplies } & & 600 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts payable } & 600 & \
\hline \text { Supplies } & & 600 \
\hline
\end{array}$$

Question 13

An account that normally has a debit balance may occasionally have a credit balance.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following accounts decreases with a debit?

Accepted Answer

A)  Notes payable 
B)  Prepaid insurance 
C)  Cash 
D)  Land 
A)  Notes payable 
B)  Prepaid insurance 
C)  Cash 
D)  Land

Question 15

Which of the following accounts decreases with a credit?

Accepted Answer

A)  Cash 
B)  Capital 
C)  Accounts payable 
D)  Notes Payable 
A)  Cash 
B)  Capital 
C)  Accounts payable 
D)  Notes Payable

Question 16

When recording a transaction in a journal,the credit side is entered first,followed by the debit side.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following groups of accounts BOTH normally have a credit balance?

Accepted Answer

A)  Assets and Expenses 
B)  Revenues and Expenses 
C)  Liabilities and Owner's equity 
D)  Assets and Liabilities 
A)  Assets and Expenses 
B)  Revenues and Expenses 
C)  Liabilities and Owner's equity 
D)  Assets and Liabilities

Question 18

For assets and expenses,a debit increases the account.

Accepted Answer

A) True 
 B)False

Question 19

The process of copying from the journal to the ledger is called posting.

Accepted Answer

A) True 
 B)False

Question 20

A listing of all account titles in numerical order is a(n):

Accepted Answer

A)  ledger. 
B)  journal. 
C)  income statement. 
D)  chart of accounts. 
A)  ledger. 
B)  journal. 
C)  income statement. 
D)  chart of accounts.

The first step of journalizing an entry is to:

Which of the following is the detailed record of the changes in a particular asset,liability,or owner's equity?

For Expenses,the category of account and its normal balance are:

A business makes a cash payment of $12,000 to a creditor.Which account is credited?

A business makes a cash payment for advertising expense.Which account is debited?

Which of the following is a method used to detect errors when the two columns of the trial balance are NOT equal?

For Cash,the category of account and its normal balance are:

Which of the following journal entries would be recorded if a business makes a cash payment to a supplier of $600 "on account" (the business had purchased supplies on account in the previous month)?

An account that normally has a debit balance may occasionally have a credit balance.

Which of the following accounts decreases with a debit?

Which of the following accounts decreases with a credit?

When recording a transaction in a journal,the credit side is entered first,followed by the debit side.

Which of the following groups of accounts BOTH normally have a credit balance?

For assets and expenses,a debit increases the account.

The process of copying from the journal to the ledger is called posting.

A listing of all account titles in numerical order is a(n):

Accounting and the Business Environment

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandising Inventory

Internal Control and Cash

Receivables

Plant Assets and Intangibles

Current Liabilities and Payroll

Long-Term Liabilities, bonds Payable, and Classification of Liabilities on the Balance Sheet

Filters

Exam 2: Recording Business Transactions

The first step of journalizing an entry is to:

Which of the following is the detailed record of the changes in a particular asset,liability,or owner's equity?

For Expenses,the category of account and its normal balance are:

A business makes a cash payment of $12,000 to a creditor.Which account is credited?

A business makes a cash payment for advertising expense.Which account is debited?

At the end of a month,a business shows the following balances in its ledger. Please use this data to prepare a trial balance. Account Title Debit Credit

Which of the following is a method used to detect errors when the two columns of the trial balance are NOT equal?

For Cash,the category of account and its normal balance are:

Which of the following journal entries would be recorded if a business makes a cash payment to a supplier of $600 "on account" (the business had purchased supplies on account in the previous month)?

An account that normally has a debit balance may occasionally have a credit balance.

Which of the following accounts decreases with a debit?

Which of the following accounts decreases with a credit?

When recording a transaction in a journal,the credit side is entered first,followed by the debit side.

Which of the following groups of accounts BOTH normally have a credit balance?

For assets and expenses,a debit increases the account.

The process of copying from the journal to the ledger is called posting.

A listing of all account titles in numerical order is a(n):

Accounting and the Business Environment

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandising Inventory

Internal Control and Cash

Receivables

Plant Assets and Intangibles

Current Liabilities and Payroll

Long-Term Liabilities, bonds Payable, and Classification of Liabilities on the Balance Sheet

Filters