Question 1

Equipment is purchased for cash.Which of the following would be TRUE?

Accepted Answer

A)  There is an increase in total assets. 
B)  There is a decrease in both total assets and total liabilities. 
C)  There is an increase in total assets and a decrease in total liabilities. 
D)  There is no effect on total assets. 
A)  There is an increase in total assets. 
B)  There is a decrease in both total assets and total liabilities. 
C)  There is an increase in total assets and a decrease in total liabilities. 
D)  There is no effect on total assets.

Question 2

A journal entry for a $250 payment to purchase supplies was erroneously recorded as a debit to Supplies for $520 and a credit to Cash for $250.Which of the following statements about the trial balance is TRUE?

Accepted Answer

A)  The sum of the credits will exceed the sum of the debits by $270. 
B)  The sum of the debits will exceed the sum of the credits by $250. 
C)  The sum of the debits will exceed the sum of the credits by $270. 
D)  The trial balance will be in balance; the sum of the credits will equal the sum of the debits. 
A)  The sum of the credits will exceed the sum of the debits by $270. 
B)  The sum of the debits will exceed the sum of the credits by $250. 
C)  The sum of the debits will exceed the sum of the credits by $270. 
D)  The trial balance will be in balance; the sum of the credits will equal the sum of the debits.

Question 3

A chart of accounts is the book holding all of the company's accounts.

Accepted Answer

A) True 
 B)False

Question 4

When a business records revenue earned,the revenue account is always credited.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  Accrued liability 
B)  Accounts payable 
C)  Prepaid expense 
D)  Capital 
A)  Accrued liability 
B)  Accounts payable 
C)  Prepaid expense 
D)  Capital

Question 6

Both the date of the transaction and a brief description are included in a journal entry.

Accepted Answer

A) True 
 B)False

Question 7

For Revenues,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 8

A business makes a cash payment to a supplier "on account" (for supplies which were purchased earlier.)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 9

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

Accepted Answer

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

Question 10

Which of the following is NOT an example of a source document?

Accepted Answer

A)  Journal 
B)  Sales invoice 
C)  Bank deposit slip 
D)  Purchase invoice 
A)  Journal 
B)  Sales invoice 
C)  Bank deposit slip 
D)  Purchase invoice

Question 11

In a typical chart of accounts,liabilities appear before assets.

Accepted Answer

A) True 
 B)False

Question 12

A business renders service to a client and sends out a sales invoice.The amount will be collected from the customer at a later time.Which of the following would be TRUE at the time when the invoice is sent out?

Accepted Answer

A)  Owner's equity will decrease. 
B)  Total liabilities will increase. 
C)  Total assets will decrease. 
D)  Net income will increase. 
A)  Owner's equity will decrease. 
B)  Total liabilities will increase. 
C)  Total assets will decrease. 
D)  Net income will increase.

Question 13

Which of the following accounts increases with a credit?

Accepted Answer

A)  Cash 
B)  Capital 
C)  Accounts receivable 
D)  Prepaid expenses 
A)  Cash 
B)  Capital 
C)  Accounts receivable 
D)  Prepaid expenses

Question 14

Expenses are increases in owner's equity caused by providing goods or services for customers.

Accepted Answer

A) True 
 B)False

Question 15

A business renders services to its customer for $350 on account.Please provide the journal entry (debits first,credits second.)
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\end{array}$$

Accepted Answer

This question is no

Question 16

Which of the following accounts is NOT an example of a liability?

Accepted Answer

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

Question 17

The drawing (withdrawals)account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 18

For Capital,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 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 is the net income for Toys Galore for September?
A) $8,680
B) $1,050
C) $7,630
D) $970

Accepted Answer

C) Calcul

Question 20

A book holding all of the accounts is called the:

Accepted Answer

A)  ledger. 
B)  journal. 
C)  income statement. 
D)  balance sheet. 
A)  ledger. 
B)  journal. 
C)  income statement. 
D)  balance sheet.

Equipment is purchased for cash.Which of the following would be TRUE?

A journal entry for a $250 payment to purchase supplies was erroneously recorded as a debit to Supplies for $520 and a credit to Cash for $250.Which of the following statements about the trial balance is TRUE?

A chart of accounts is the book holding all of the company's accounts.

When a business records revenue earned,the revenue account is always credited.

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

Both the date of the transaction and a brief description are included in a journal entry.

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

A business makes a cash payment to a supplier "on account" (for supplies which were purchased earlier.)Which account is credited?

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

Which of the following is NOT an example of a source document?

In a typical chart of accounts,liabilities appear before assets.

A business renders service to a client and sends out a sales invoice.The amount will be collected from the customer at a later time.Which of the following would be TRUE at the time when the invoice is sent out?

Which of the following accounts increases with a credit?

Expenses are increases in owner's equity caused by providing goods or services for customers.

A business renders services to its customer for $350 on account.Please provide the journal entry (debits first,credits second.)

Which of the following accounts is NOT an example of a liability?

The drawing (withdrawals)account is increased by a debit.

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

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 is the net income for Toys Galore for September? A) $8,680 B) $1,050 C) $7,630 D) $970

A book holding all of the accounts is called the:

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

Equipment is purchased for cash.Which of the following would be TRUE?

A journal entry for a $250 payment to purchase supplies was erroneously recorded as a debit to Supplies for $520 and a credit to Cash for $250.Which of the following statements about the trial balance is TRUE?

A chart of accounts is the book holding all of the company's accounts.

When a business records revenue earned,the revenue account is always credited.

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

Both the date of the transaction and a brief description are included in a journal entry.

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

A business makes a cash payment to a supplier "on account" (for supplies which were purchased earlier.)Which account is credited?

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

Which of the following is NOT an example of a source document?

In a typical chart of accounts,liabilities appear before assets.

A business renders service to a client and sends out a sales invoice.The amount will be collected from the customer at a later time.Which of the following would be TRUE at the time when the invoice is sent out?

Which of the following accounts increases with a credit?

Expenses are increases in owner's equity caused by providing goods or services for customers.

A business renders services to its customer for $350 on account.Please provide the journal entry (debits first,credits second.)

Which of the following accounts is NOT an example of a liability?

The drawing (withdrawals)account is increased by a debit.

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

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 is the net income for Toys Galore for September? A) $8,680 B) $1,050 C) $7,630 D) $970

A book holding all of the accounts is called the:

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