Question 1

An account is the detailed record of the changes in a particular asset,liability,or owner's equity.

Accepted Answer

A) True 
 B)False

Question 2

The following entries were made by the accountant of Patel Pastries during its first month of operation:
1).James Patel,the owner,deposited $3,000 in the business's new checking account.
2)Patel Pastries paid the first month's rent of $400 in cash.
3)Patel Pastries purchased equipment by signing a note payable of $11,000.
4)Cash sales for the month were $4,500.
5)Patel Pastries purchased cooking supplies for $1,400 cash.
-
After the accountant posts these entries to the general ledger,how much are total assets?
A) $16,700
B) $18,100
C) $7,100
D) $6,100

Accepted Answer

B) Calculations:
Cash: $3,000

Question 3

Which of the following statements about expenses is CORRECT?

Accepted Answer

A)  Expenses increase owner's equity, so an expense account's normal balance is a credit balance. 
B)  Expenses decrease owner's equity, so an expense account's normal balance is a credit balance. 
C)  Expenses increase owner's equity, so an expense account's normal balance is a debit balance. 
D)  Expenses decrease owner's equity, so an expense account's normal balance is a debit balance. 
A)  Expenses increase owner's equity, so an expense account's normal balance is a credit balance. 
B)  Expenses decrease owner's equity, so an expense account's normal balance is a credit balance. 
C)  Expenses increase owner's equity, so an expense account's normal balance is a debit balance. 
D)  Expenses decrease owner's equity, so an expense account's normal balance is a debit balance.

Question 4

A liability account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 5

In the standard accounting system,we use double entry accounting,which means we record the dual effects of each transaction.

Accepted Answer

A) True 
 B)False

Question 6

A business pays $500 cash for supplies.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 7

Journalizing 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 8

For liabilities and revenues,a debit increases the account.

Accepted Answer

A) True 
 B)False

Question 9

A business has the following transactions: The business is started by receiving $20,000 from the owner.The business purchases $500 of supplies on account.The business purchases $2,000 of furniture on account.The business renders services to various clients totaling $9,000 on account.The business pays out $2,000 for Salary expense and $3,000 for Rent expense.The business pays $500 to a supplier for the supplies purchased earlier.The business collects $1,500 from one of its clients for services rendered earlier in the month.At the end of the month,all journal entries are posted to the ledger.The Cash account will appear as follows:

Accepted Answer

A) 
$$\begin{array} { r | r } 
 { \text { Cash } } \
\hline 20,000 & \
& 2,000 \
& 3,000 \
& 500 \
1,500 & \
\hline 16,000 &
\end{array}$$ 
B) 
$$\begin{array} { c | c } 
\text { Cash } \
\hline 20,000 & \
& 2,000 \
& 3,000 \
& \
\hline 15,000 &
\end{array}$$ 
C) 
$$\begin{array} { r | r } 
 { \text { Cash } } \
\hline & 20,000 \2,000 \
3,000 & \
500 & \
& 1,500 \
\hline & 16,000
\end{array}$$ 
D) 
$$\begin{array} { r | r } 
\text { Cash } \
\hline 20,000 & \
2,000 & \
3,000 & \
500 & \
& 1,500 \
\hline 24,000 \
\end{array}$$ 
A) 
$$\begin{array} { r | r } 
 { \text { Cash } } \
\hline 20,000 & \
& 2,000 \
& 3,000 \
& 500 \
1,500 & \
\hline 16,000 &
\end{array}$$ 
B) 
$$\begin{array} { c | c } 
\text { Cash } \
\hline 20,000 & \
& 2,000 \
& 3,000 \
& \
\hline 15,000 &
\end{array}$$ 
C) 
$$\begin{array} { r | r } 
 { \text { Cash } } \
\hline & 20,000 \2,000 \
3,000 & \
500 & \
& 1,500 \
\hline & 16,000
\end{array}$$ 
D) 
$$\begin{array} { r | r } 
\text { Cash } \
\hline 20,000 & \
2,000 & \
3,000 & \
500 & \
& 1,500 \
\hline 24,000 \
\end{array}$$

Question 10

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 balance in Service revenue?
A) $1,000
B) $3,000
C) $4,000
D) $3,150

Accepted Answer

C) Calcul

Question 11

A trial balance is a list of all of the accounts with their balances.

Accepted Answer

A) True 
 B)False

Question 12

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 cash down and put the balance on a note payable.
C.The business paid insurance expense of $1,350 cash.
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 $12,000 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 are the total liabilities at the end of September,2013?
A)$980
B)$2,330
C)$9,000
D)$4,800

Accepted Answer

C) Calculations: $9

Question 13

A business renders services to its customer and collects $900 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 14

A business purchases supplies for $200 on account.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 15

A business purchases equipment for cash in the amount of $8,000.Which account is debited?

Accepted Answer

A)  Cash 
B)  Accounts payable 
C)  Utilities expense 
D)  Equipment 
A)  Cash 
B)  Accounts payable 
C)  Utilities expense 
D)  Equipment

Question 16

A company received $75,000 from a customer "on account." The journal entry would be to:

Accepted Answer

A)  debit Accounts receivable and credit Sales revenue. 
B)  debit Accounts receivable and credit Cash. 
C)  debit Cash and credit Accounts receivable. 
D)  debit Sales revenue and credit Accounts receivable. 
A)  debit Accounts receivable and credit Sales revenue. 
B)  debit Accounts receivable and credit Cash. 
C)  debit Cash and credit Accounts receivable. 
D)  debit Sales revenue and credit Accounts receivable.

Question 17

A business has the following transactions: the business is started by receiving $20,000 from the owner.The business purchases $500 of supplies on account.The business purchases $2,000 of furniture on account.The business renders services to various clients totaling $9,000 on account.The business pays out $2,000 for Salary expense and $3,000 for Rent expense.Business pays $500 to supplier for the supplies purchased earlier.The business collects $1,500 from one of its clients for services rendered earlier in the month.At the end of the month,all journal entries are posted to the ledger.The Accounts receivable account will appear as follows:

Accepted Answer

A) 
$\begin{array}{l}
\text { Accounts receivable }\
\begin{array} { l | l } 
\hline 9,000 & \
& 1,500 \
\hline & 7,500
\end{array}
\end{array}$ 
B) 
$$\begin{array}{l}
\text { Accounts receivable }\
\begin{array} { l | l } 
\hline 9,000 & \
& 1,500 \
\hline 7,500 & \
\end{array}
\end{array}$$ 
C) 
$$\begin{array}{l}
\text { Accounts receivable }\
\begin{array} { l | l } 
\hline 9,000 & \
& \
\hline 9,000 &
\end{array}
\end{array}$$ 
D) 
$$\begin{array}{l}
\text { Accounts receivable }\
\begin{array} { l | l } 
\hline 9,000 & \
& 1,500 \
\hline 7,500 & \
\hline
\end{array}
\end{array}$$ 
A) 
$\begin{array}{l}
\text { Accounts receivable }\
\begin{array} { l | l } 
\hline 9,000 & \
& 1,500 \
\hline & 7,500
\end{array}
\end{array}$ 
B) 
$$\begin{array}{l}
\text { Accounts receivable }\
\begin{array} { l | l } 
\hline 9,000 & \
& 1,500 \
\hline 7,500 & \
\end{array}
\end{array}$$ 
C) 
$$\begin{array}{l}
\text { Accounts receivable }\
\begin{array} { l | l } 
\hline 9,000 & \
& \
\hline 9,000 &
\end{array}
\end{array}$$ 
D) 
$$\begin{array}{l}
\text { Accounts receivable }\
\begin{array} { l | l } 
\hline 9,000 & \
& 1,500 \
\hline 7,500 & \
\hline
\end{array}
\end{array}$$

Question 18

The following transactions have been journalized and posted to the proper accounts.Prepare a trial balance in good form.
a.Edward Wilson invested $8,000 cash in his new landscaping business.
b.The business paid the first month's rent with $300 cash.
c.The business purchased equipment by paying $2,000 cash and executing a note payable for $3,000.
d.The business purchased supplies for $200 cash.
e.The business billed clients for a total of $1,000 for design services rendered.
f.The business received $750 cash from clients for services rendered above.
g.The owner took a withdrawal of $2,000.
 $$\begin{array} { | l | l | l | } 
\hline \text { Account Title } & \text { Debit } & \text { Credit } \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline & & \
\hline
\end{array}$$

Accepted Answer

This question is no

Question 19

A business repays the amount borrowed on a note payable.Which account is credited?

Accepted Answer

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

Question 20

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)  Cash is credited for $1,000; Interest expense is credited for $200; and Notes payable is debited for $1,200. 
B)  Notes payable is credited for $1,000; Cash is credited for $200; and Interest expense is debited for $1,200. 
C)  Cash is credited for $1,200; Notes payable is debited for $1,000; and Interest expense is debited for $200. 
D)  Notes payable is credited for $1,200; Cash is debited for $1,000; and Interest expense is debited for $200. 
A)  Cash is credited for $1,000; Interest expense is credited for $200; and Notes payable is debited for $1,200. 
B)  Notes payable is credited for $1,000; Cash is credited for $200; and Interest expense is debited for $1,200. 
C)  Cash is credited for $1,200; Notes payable is debited for $1,000; and Interest expense is debited for $200. 
D)  Notes payable is credited for $1,200; Cash is debited for $1,000; and Interest expense is debited for $200.

An account is the detailed record of the changes in a particular asset,liability,or owner's equity.

Which of the following statements about expenses is CORRECT?

A liability account is increased by a debit.

In the standard accounting system,we use double entry accounting,which means we record the dual effects of each transaction.

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

Journalizing a transaction means:

For liabilities and revenues,a debit increases the account.

A trial balance is a list of all of the accounts with their balances.

A business renders services to its customer and collects $900 cash.Please provide the journal entry (debits first,credits second.)

A business purchases supplies for $200 on account.Please provide the journal entry (debits first,credits second.)

A business purchases equipment for cash in the amount of $8,000.Which account is debited?

A company received $75,000 from a customer "on account." The journal entry would be to:

A business repays the amount borrowed on a note payable.Which account is credited?

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?

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

An account is the detailed record of the changes in a particular asset,liability,or owner's equity.

Which of the following statements about expenses is CORRECT?

A liability account is increased by a debit.

In the standard accounting system,we use double entry accounting,which means we record the dual effects of each transaction.

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

Journalizing a transaction means:

For liabilities and revenues,a debit increases the account.

A trial balance is a list of all of the accounts with their balances.

A business renders services to its customer and collects $900 cash.Please provide the journal entry (debits first,credits second.)

A business purchases supplies for $200 on account.Please provide the journal entry (debits first,credits second.)

A business purchases equipment for cash in the amount of $8,000.Which account is debited?

A company received $75,000 from a customer "on account." The journal entry would be to:

A business repays the amount borrowed on a note payable.Which account is credited?

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?

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