Question 1

Assets,Drawing,and Expenses have a normal balance on the debit side.

Accepted Answer

A) True 
 B)False

Question 2

A business purchased a building by paying part of the purchase price in cash as a down payment and signing a mortgage note for the remainder.The business should:

Accepted Answer

A)  debit the mortgage note payable for the amount of the mortgage. 
B)  debit the building account for the amount of the mortgage. 
C)  debit cash for the amount paid on the down payment. 
D)  credit the mortgage note payable for the amount of the mortgage. 
A)  debit the mortgage note payable for the amount of the mortgage. 
B)  debit the building account for the amount of the mortgage. 
C)  debit cash for the amount paid on the down payment. 
D)  credit the mortgage note payable for the amount of the mortgage.

Question 3

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 of $700.
3)The business purchased equipment by paying $2,000 cash and executing a note payable for $4,500.
4)The business purchased supplies for $850 cash.
5)The business billed a client for $4,000 of design services completed.
6)The business received $3,000 of the account for the completed services.
What is the balance in Cash?
A) $7,850
B) $6,450
C) $8,450
D) $8,150

Accepted Answer

B) Calculations: $7

Question 4

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.
-
How much was net income?
A) $700
B) $300
C) $3,300
D) $2,450

Accepted Answer

C) Calcul

Question 5

An owner invests $20,000 in her new business by depositing the cash in the business's checking account.Which account is debited?

Accepted Answer

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

Question 6

A business purchases land for $100,000 cash.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 7

In a typical chart of accounts,what information is provided along with the account name?

Accepted Answer

A)  Account balance 
B)  Account number 
C)  Dates of transactions 
D)  Transaction amounts 
A)  Account balance 
B)  Account number 
C)  Dates of transactions 
D)  Transaction amounts

Question 8

The accounting process of copying a transaction from the journal to the ledger is called:

Accepted Answer

A)  journalizing. 
B)  posting. 
C)  proofing. 
D)  footing. 
A)  journalizing. 
B)  posting. 
C)  proofing. 
D)  footing.

Question 9

At the end of the month,the business owner takes a withdrawal of $10,000.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 10

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 last 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 11

A business owner took a withdrawal.Which of the following would be TRUE?

Accepted Answer

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

Question 12

A business purchases equipment by paying $8,000 in cash and issuing a note payable of $12,000.Which of the following journal entries would be recorded?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Equipment } & 20,000 & \
\hline \text { Notes payable } & & 12,000 \
\hline \text { Cash } & & 8,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 8,000 & \
\hline \text { Notes payable } & 12,000 & \
\hline \text { Equipment } & & 20,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 8,000 & \
\hline \text { Notes payable } & 4,000 & \
\hline \text { Equipment } & & 12,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Equipment } & 8,000 & \
\hline \text { Notes payable } & 4,000 & \
\hline \text { Cash } & & 12,000 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Equipment } & 20,000 & \
\hline \text { Notes payable } & & 12,000 \
\hline \text { Cash } & & 8,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 8,000 & \
\hline \text { Notes payable } & 12,000 & \
\hline \text { Equipment } & & 20,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 8,000 & \
\hline \text { Notes payable } & 4,000 & \
\hline \text { Equipment } & & 12,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Equipment } & 8,000 & \
\hline \text { Notes payable } & 4,000 & \
\hline \text { Cash } & & 12,000 \
\hline
\end{array}$$

Question 13

On a trial balance,which accounts are listed last?

Accepted Answer

A)  Expenses 
B)  Revenues 
C)  Liabilities 
D)  Assets 
A)  Expenses 
B)  Revenues 
C)  Liabilities 
D)  Assets

Question 14

The trial balance shows total amounts for assets,liabilities,and equity.

Accepted Answer

A) True 
 B)False

Question 15

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

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 16

Posting a transaction means:

Accepted Answer

A)  calculating the balance in an account. 
B)  finding the account number in the chart of accounts. 
C)  recording the transaction including a brief explanation. 
D)  copying the information from the journal to the ledger. 
A)  calculating the balance in an account. 
B)  finding the account number in the chart of accounts. 
C)  recording the transaction including a brief explanation. 
D)  copying the information from the journal to the ledger.

Question 17

An owner invests $20,000 in her new business by depositing the cash in the business's checking account.Which account is credited?

Accepted Answer

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

Question 18

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 total amount of debits for the trial balance?
A) $21,630
B) $16,400
C) $20,580
D) $30,310

Accepted Answer

A) Calculations: $4

Question 19

A business makes a cash payment to a supplier "on account" (for supplies which were purchased earlier.)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 20

An asset account is increased by a debit.

Accepted Answer

A) True 
 B)False

Assets,Drawing,and Expenses have a normal balance on the debit side.

A business purchased a building by paying part of the purchase price in cash as a down payment and signing a mortgage note for the remainder.The business should:

An owner invests $20,000 in her new business by depositing the cash in the business's checking account.Which account is debited?

A business purchases land for $100,000 cash.Please provide the journal entry (debits first,credits second.)

In a typical chart of accounts,what information is provided along with the account name?

The accounting process of copying a transaction from the journal to the ledger is called:

At the end of the month,the business owner takes a withdrawal of $10,000.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 last account listed on the trial balance for Toys Galore?

A business owner took a withdrawal.Which of the following would be TRUE?

A business purchases equipment by paying $8,000 in cash and issuing a note payable of $12,000.Which of the following journal entries would be recorded?

On a trial balance,which accounts are listed last?

The trial balance shows total amounts for assets,liabilities,and equity.

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

Posting a transaction means:

An owner invests $20,000 in her new business by depositing the cash in the business's checking account.Which account is credited?

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

An asset account is increased by a debit.

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

Assets,Drawing,and Expenses have a normal balance on the debit side.

A business purchased a building by paying part of the purchase price in cash as a down payment and signing a mortgage note for the remainder.The business should:

An owner invests $20,000 in her new business by depositing the cash in the business's checking account.Which account is debited?

A business purchases land for $100,000 cash.Please provide the journal entry (debits first,credits second.)

In a typical chart of accounts,what information is provided along with the account name?

The accounting process of copying a transaction from the journal to the ledger is called:

At the end of the month,the business owner takes a withdrawal of $10,000.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 last account listed on the trial balance for Toys Galore?

A business owner took a withdrawal.Which of the following would be TRUE?

A business purchases equipment by paying $8,000 in cash and issuing a note payable of $12,000.Which of the following journal entries would be recorded?

On a trial balance,which accounts are listed last?

The trial balance shows total amounts for assets,liabilities,and equity.

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

Posting a transaction means:

An owner invests $20,000 in her new business by depositing the cash in the business's checking account.Which account is credited?

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

An asset account is increased by a debit.

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