Question 1

A business pays $500 cash for supplies.Which account is credited?

Accepted Answer

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

Question 2

Which of the following accounts is an example of a liability?

Accepted Answer

A)  Service revenue 
B)  Building 
C)  Accounts receivable 
D)  Notes payable 
A)  Service revenue 
B)  Building 
C)  Accounts receivable 
D)  Notes payable

Question 3

Accountants first record transactions in the:

Accepted Answer

A)  chart of accounts. 
B)  trial balance. 
C)  journal. 
D)  ledger 
A)  chart of accounts. 
B)  trial balance. 
C)  journal. 
D)  ledger

Question 4

Which of the following accounts is an example of an owner's equity account?

Accepted Answer

A)  Accounts payable 
B)  Equipment 
C)  Cash 
D)  Drawing 
A)  Accounts payable 
B)  Equipment 
C)  Cash 
D)  Drawing

Question 5

Data from a trial balance is used to prepare the three basic financial statements.

Accepted Answer

A) True 
 B)False

Question 6

In the accounting system,the first place that transactions are recorded is the ledger.

Accepted Answer

A) True 
 B)False

Question 7

For Accounts receivable,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 8

A trial balance is the list of all a company's accounts along with their account numbers.

Accepted Answer

A) True 
 B)False

Question 9

A journal entry includes BOTH debit and credit amounts.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following journal entries would be recorded if a business renders service and receives cash of $400 from the customer?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 400 & \
\hline \text { Cash } & & 400 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 400 & \
\hline \text { Accounts payable } & & 400 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 400 & \
\hline \text { Service revenue } & & 400 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 400 & \
\hline \text { Accounts receivable } & & 400 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 400 & \
\hline \text { Cash } & & 400 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 400 & \
\hline \text { Accounts payable } & & 400 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 400 & \
\hline \text { Service revenue } & & 400 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 400 & \
\hline \text { Accounts receivable } & & 400 \
\hline
\end{array}$$

Question 11

Which of the following journal entries would be recorded if a business purchased equipment for $3,000 cash?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 3,000 & \
\hline \text { Equipment } & & 3,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Equipment } & 3,000 & \
\hline \text { Cash } & & 3,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 3,000 & \
\hline \text { Accounts payable } & & 3,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Equipment } & 3,000 & \
\hline \text { Accounts payable } & & 3,000 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 3,000 & \
\hline \text { Equipment } & & 3,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Equipment } & 3,000 & \
\hline \text { Cash } & & 3,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 3,000 & \
\hline \text { Accounts payable } & & 3,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Equipment } & 3,000 & \
\hline \text { Accounts payable } & & 3,000 \
\hline
\end{array}$$

Question 12

The balance of an account is the:

Accepted Answer

A)  amount remaining in an account. 
B)  account number, as shown in the chart of accounts. 
C)  sum of the debits only. 
D)  sum of the credits only. 
A)  amount remaining in an account. 
B)  account number, as shown in the chart of accounts. 
C)  sum of the debits only. 
D)  sum of the credits only.

Question 13

A utility bill is received for expenses incurred.It will be paid in the following accounting period.Which of the following would be TRUE as a result of the receipt of the utility bill?

Accepted Answer

A)  Net income will increase. 
B)  Owner's equity will decrease. 
C)  Total liabilities will decrease. 
D)  There will be no effect on total liabilities. 
A)  Net income will increase. 
B)  Owner's equity will decrease. 
C)  Total liabilities will decrease. 
D)  There will be no effect on total liabilities.

Question 14

Which of the following accounts is NOT an example of an asset?

Accepted Answer

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

Question 15

Which of the following journal entries would be recorded if a business collects $1,000 cash on account from a customer for services performed at an earlier date?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 1,000 & \
\hline \text { Service revenue } & & 1,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | r | r | } 
\hline \text { Accounts receivable } & 1,000 & \
\hline \text { Service revenue } & & 1,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 1,000 & \
\hline \text { Accounts receivable } & & 1,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 1,000 & \
\hline \text { Accounts receivable } & & 1,000 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 1,000 & \
\hline \text { Service revenue } & & 1,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | r | r | } 
\hline \text { Accounts receivable } & 1,000 & \
\hline \text { Service revenue } & & 1,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 1,000 & \
\hline \text { Accounts receivable } & & 1,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Service revenue } & 1,000 & \
\hline \text { Accounts receivable } & & 1,000 \
\hline
\end{array}$$

Question 16

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 $2,500 down and put the balance on a note payable.
C.The business paid a utility bill for $980 cash.
D.The business paid $2,000 cash for September rent.
E.The business had sales of $15,000 in September.Of these sales,60% were cash sales,and the balance was credit sales.
F.The business paid $9,700 cash for office furniture.
What is the net income for September,2013?
A)$12,020
B)$9,000
C)$6,020
D)$5,300

Accepted Answer

A) Calculations: $1

Question 17

A journal entry for a $75 payment for Rent expense was posted as a debit to Salary expense and a credit to Cash.This error will cause which of the following conditions on the trial balance?

Accepted Answer

A)  The sum of the credits will equal the sum of the debits. 
B)  The sum of the debits will exceed the sum of the credits by $75. 
C)  The sum of the debits will exceed the sum of the credits by $150. 
D)  The sum of the credits will exceed the sum of the debits by $150. 
A)  The sum of the credits will equal the sum of the debits. 
B)  The sum of the debits will exceed the sum of the credits by $75. 
C)  The sum of the debits will exceed the sum of the credits by $150. 
D)  The sum of the credits will exceed the sum of the debits by $150.

Question 18

Which of the following accounts is an asset?

Accepted Answer

A)  Salary expense 
B)  Accounts payable 
C)  Service revenue 
D)  Prepaid expenses 
A)  Salary expense 
B)  Accounts payable 
C)  Service revenue 
D)  Prepaid expenses

Question 19

A business collects cash from a customer in payment of accounts receivable.Which account is debited?

Accepted Answer

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

Question 20

A business renders services for $16,000 and collects cash from the customer.Which account is debited?

Accepted Answer

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

A business pays $500 cash for supplies.Which account is credited?

Which of the following accounts is an example of a liability?

Accountants first record transactions in the:

Which of the following accounts is an example of an owner's equity account?

Data from a trial balance is used to prepare the three basic financial statements.

In the accounting system,the first place that transactions are recorded is the ledger.

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

A trial balance is the list of all a company's accounts along with their account numbers.

A journal entry includes BOTH debit and credit amounts.

Which of the following journal entries would be recorded if a business renders service and receives cash of $400 from the customer?

Which of the following journal entries would be recorded if a business purchased equipment for $3,000 cash?

The balance of an account is the:

A utility bill is received for expenses incurred.It will be paid in the following accounting period.Which of the following would be TRUE as a result of the receipt of the utility bill?

Which of the following accounts is NOT an example of an asset?

Which of the following journal entries would be recorded if a business collects $1,000 cash on account from a customer for services performed at an earlier date?

A journal entry for a $75 payment for Rent expense was posted as a debit to Salary expense and a credit to Cash.This error will cause which of the following conditions on the trial balance?

Which of the following accounts is an asset?

A business collects cash from a customer in payment of accounts receivable.Which account is debited?

A business renders services for $16,000 and collects cash from the customer.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 business pays $500 cash for supplies.Which account is credited?

Which of the following accounts is an example of a liability?

Accountants first record transactions in the:

Which of the following accounts is an example of an owner's equity account?

Data from a trial balance is used to prepare the three basic financial statements.

In the accounting system,the first place that transactions are recorded is the ledger.

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

A trial balance is the list of all a company's accounts along with their account numbers.

A journal entry includes BOTH debit and credit amounts.

Which of the following journal entries would be recorded if a business renders service and receives cash of $400 from the customer?

Which of the following journal entries would be recorded if a business purchased equipment for $3,000 cash?

The balance of an account is the:

A utility bill is received for expenses incurred.It will be paid in the following accounting period.Which of the following would be TRUE as a result of the receipt of the utility bill?

Which of the following accounts is NOT an example of an asset?

Which of the following journal entries would be recorded if a business collects $1,000 cash on account from a customer for services performed at an earlier date?

A journal entry for a $75 payment for Rent expense was posted as a debit to Salary expense and a credit to Cash.This error will cause which of the following conditions on the trial balance?

Which of the following accounts is an asset?

A business collects cash from a customer in payment of accounts receivable.Which account is debited?

A business renders services for $16,000 and collects cash from the customer.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