Question 1

A trial balance lists accounts in which order?

Accepted Answer

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

Question 2

Which of the following groups of accounts BOTH normally have a debit 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 3

A business buys $500 of supplies on account.Which account is debited?

Accepted Answer

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

Question 4

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

Question 5

In a previous month,the business rendered services of $5,000 to a client on account.Now the business receives $5,000 cash from the client.Please provide the journal entry (debits first,credits second.)
 $$\begin{array} { | l | r | r | } 
\hline \quad\quad\quad&\quad&\quad \
\hline \
\hline
\end{array}$$

Accepted Answer

This question is no

Question 6

Prepaid expenses are recorded as:

Accepted Answer

A)  assets. 
B)  liabilities. 
C)  debits and credits. 
D)  owner's equity. 
A)  assets. 
B)  liabilities. 
C)  debits and credits. 
D)  owner's equity.

Question 7

Which of the following are accrued liabilities?

Accepted Answer

A)  Taxes payable 
B)  Interest payable 
C)  Salary payable 
D)  All of the above 
A)  Taxes payable 
B)  Interest payable 
C)  Salary payable 
D)  All of the above

Question 8

A business borrows cash by signing a note payable.Which account is debited?

Accepted Answer

A)  Notes payable 
B)  Accounts payable 
C)  Accounts receivable 
D)  Cash 
A)  Notes payable 
B)  Accounts payable 
C)  Accounts receivable 
D)  Cash

Question 9

A business makes a payment of $1,200 on a note payable,consisting of a $200 interest payment and a $1,000 principal payment.Which of the following journal entries would be recorded?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Notes payable } & 1,000 & \
\hline \text { Interest expense } & 200 & \
\hline \text { Cash } & & 1,200 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 1,200 & \
\hline \text { Notes payable } & & 1,000 \
\hline \text { Interest expense } & & 200 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Notes payable } & 1,200 & \
\hline \text { Cash } & & 1,000 \
\hline \text { Interest expense } & & 200 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 1,000 & \
\hline \text { Notes payable } & & 1,200 \
\hline \text { Interest expense } & & 200 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Notes payable } & 1,000 & \
\hline \text { Interest expense } & 200 & \
\hline \text { Cash } & & 1,200 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 1,200 & \
\hline \text { Notes payable } & & 1,000 \
\hline \text { Interest expense } & & 200 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Notes payable } & 1,200 & \
\hline \text { Cash } & & 1,000 \
\hline \text { Interest expense } & & 200 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 1,000 & \
\hline \text { Notes payable } & & 1,200 \
\hline \text { Interest expense } & & 200 \
\hline
\end{array}$$

Question 10

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

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 11

Which of the following accounts increases with a debit?

Accepted Answer

A)  Cash 
B)  Interest payable 
C)  Accounts payable 
D)  Capital 
A)  Cash 
B)  Interest payable 
C)  Accounts payable 
D)  Capital

Question 12

Which of the following journal entries would be recorded if a business purchased $200 of supplies on account?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts payable } & 200 & \
\hline \text { Supplies } & & 200 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Supplies } & 200 & \
\hline \text { Accounts payable } & & 200 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | r | r | r | } 
\hline \text { Supplies } & 200 & \
\hline \text { Cash } & & 200 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 200 & \
\hline \text { Supplies } & & 200 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts payable } & 200 & \
\hline \text { Supplies } & & 200 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Supplies } & 200 & \
\hline \text { Accounts payable } & & 200 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | r | r | r | } 
\hline \text { Supplies } & 200 & \
\hline \text { Cash } & & 200 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 200 & \
\hline \text { Supplies } & & 200 \
\hline
\end{array}$$

Question 13

When a business records an expense incurred,the expense account is always credited.

Accepted Answer

A) True 
 B)False

Question 14

The following transactions have been journalized and posted to the proper accounts. 1.Mark Call invested $7,000 cash in his new design services business.
2)The business paid the first month's rent with $700 cash.
3)The business purchased equipment by paying $2,000 down and executing a note payable for $4,500.
4)The business purchased supplies for $850 cash.
5)The business billed its clients a total of $4,000 for design services rendered.
6)The business collected $3,000 on account from one of its clients.
-
What is the total amount of assets after all the above transactions have been completed?
A) $7,800
B) $13,800
C) $12,800
D) $14,800

Accepted Answer

D) Calculations:
Cash: $7,000

Question 15

Which of the following statements CORRECTLY describes a trial balance?

Accepted Answer

A)  A trial balance is the first step in the accounting cycle. 
B)  A trial balance is also known as a balance sheet. 
C)  A trial balance is a list of all accounts with their balances. 
D)  A trial balance is also known as the chart of accounts. 
A)  A trial balance is the first step in the accounting cycle. 
B)  A trial balance is also known as a balance sheet. 
C)  A trial balance is a list of all accounts with their balances. 
D)  A trial balance is also known as the chart of accounts.

Question 16

Which of the following statements is TRUE?

Accepted Answer

A)  A trial balance is in the same format as a balance sheet. 
B)  A trial balance presents data in debit and credit format, but a balance sheet does not. 
C)  A trial balance shows total amounts for assets, liabilities, and equity. 
D)  A trial balance is created after the balance sheet is prepared. 
A)  A trial balance is in the same format as a balance sheet. 
B)  A trial balance presents data in debit and credit format, but a balance sheet does not. 
C)  A trial balance shows total amounts for assets, liabilities, and equity. 
D)  A trial balance is created after the balance sheet is prepared.

Question 17

When a business makes a cash payment,the cash account is always debited.

Accepted Answer

A) True 
 B)False

Question 18

At the end of the month,the business receives a bill for utility expenses of $800 incurred during the month.The business will pay the bill during the following month.Please provide the journal entry (debits first,credits second.)
 $$\begin{array} { | l | r | r | } 
\hline \quad\quad\quad&\quad&\quad \
\hline \
\hline
\end{array}$$

Accepted Answer

This question is no

Question 19

The following are the ending month's balances for Toys Galore. $\begin{array}{|l|r|}
\hline \text { Accounts payable } & \$ 6,790 \
\hline \text { Revenues } & 8,680 \
\hline \text { Cash } & 4,500 \
\hline \text { Expenses } & 1,050\
\hline \text { Furniture } & 8,370 \
\hline \text { Accounts receivable } & 7,710 \
\hline \text { Capital } & 930 \
\hline \text { Notes payable } & 5,230\\hline
\end{array}$ What would be the first account listed on the trial balance for Toys Galore?

Accepted Answer

A)  Revenue 
B)  Expenses 
C)  Cash 
D)  Accounts payable 
A)  Revenue 
B)  Expenses 
C)  Cash 
D)  Accounts payable

Question 20

A business pays cash back to the owner.Which account is debited?

Accepted Answer

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

A trial balance lists accounts in which order?

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

A business buys $500 of supplies on account.Which account is debited?

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

In a previous month,the business rendered services of $5,000 to a client on account.Now the business receives $5,000 cash from the client.Please provide the journal entry (debits first,credits second.)

Prepaid expenses are recorded as:

Which of the following are accrued liabilities?

A business borrows cash by signing a note payable.Which account is debited?

A business makes a payment of $1,200 on a note payable,consisting of a $200 interest payment and a $1,000 principal payment.Which of the following journal entries would be recorded?

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

Which of the following accounts increases with a debit?

Which of the following journal entries would be recorded if a business purchased $200 of supplies on account?

When a business records an expense incurred,the expense account is always credited.

Which of the following statements CORRECTLY describes a trial balance?

Which of the following statements is TRUE?

When a business makes a cash payment,the cash account is always debited.

At the end of the month,the business receives a bill for utility expenses of $800 incurred during the month.The business will pay the bill during the following month.Please provide the journal entry (debits first,credits second.)

The following are the ending month's balances for Toys Galore. Accounts payable \ 6,790 Revenues 8,680 Cash 4,500 Expenses 1,050 Furniture 8,370 Accounts receivable 7,710 Capital 930 Notes payable 5,230 What would be the first account listed on the trial balance for Toys Galore?

A business pays cash back to the owner.Which account is debited?

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

A trial balance lists accounts in which order?

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

A business buys $500 of supplies on account.Which account is debited?

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

In a previous month,the business rendered services of $5,000 to a client on account.Now the business receives $5,000 cash from the client.Please provide the journal entry (debits first,credits second.)

Prepaid expenses are recorded as:

Which of the following are accrued liabilities?

A business borrows cash by signing a note payable.Which account is debited?

A business makes a payment of $1,200 on a note payable,consisting of a $200 interest payment and a $1,000 principal payment.Which of the following journal entries would be recorded?

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

Which of the following accounts increases with a debit?

Which of the following journal entries would be recorded if a business purchased $200 of supplies on account?

When a business records an expense incurred,the expense account is always credited.

Which of the following statements CORRECTLY describes a trial balance?

Which of the following statements is TRUE?

When a business makes a cash payment,the cash account is always debited.

At the end of the month,the business receives a bill for utility expenses of $800 incurred during the month.The business will pay the bill during the following month.Please provide the journal entry (debits first,credits second.)

The following are the ending month's balances for Toys Galore. Accounts payable \ 6,790 Revenues 8,680 Cash 4,500 Expenses 1,050 Furniture 8,370 Accounts receivable 7,710 Capital 930 Notes payable 5,230 What would be the first account listed on the trial balance for Toys Galore?

A business pays cash back to the owner.Which account is debited?

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