Question 1

For Salary Payable,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 2

After initially recording a transaction,the data is then copied,or posted,to the:

Accepted Answer

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

Question 3

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

Accepted Answer

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

Question 4

When a business collects cash,the cash account is always debited.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

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

Question 6

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

Accepted Answer

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

Question 7

The owner's capital account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

For Accounts payable,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 10

A business buys $500 of supplies on account.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 11

The last step before preparing financial statements is to:

Accepted Answer

A)  post all entries. 
B)  record all transactions in the journal. 
C)  prepare the trial balance. 
D)  review source documents. 
A)  post all entries. 
B)  record all transactions in the journal. 
C)  prepare the trial balance. 
D)  review source documents.

Question 12

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

Accepted Answer

A) Calculations: $6

Question 13

The trial balance is one of the three basic financial statements.

Accepted Answer

A) True 
 B)False

Question 14

A business is started by receiving $5,000 cash from the owner.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

When is a trial balance usually prepared?

Accepted Answer

A)  After each entry is journalized 
B)  Before financial statements are prepared 
C)  After financial statements are published 
D)  At the beginning of an accounting period 
A)  After each entry is journalized 
B)  Before financial statements are prepared 
C)  After financial statements are published 
D)  At the beginning of an accounting period

Question 16

Which of the following journal entries would be recorded if a business purchased $200 of supplies by paying cash?

Accepted Answer

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

Question 17

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,what is the balance in the Cash account?
A) $7,500
B) $7,100
C) $5,700
D) $16,700

Accepted Answer

C) Calculations: $3

Question 18

Which of the following is the order of steps to journalize an entry?

Accepted Answer

A)  Identify each account affected, determine increase or decrease in each account, record the transaction. 
B)  Identify each account affected, record the transaction, determine increase or decrease in each account. 
C)  Record the transaction, identify each account affected, determine increase or decrease in each account. 
D)  Determine increase or decrease in each account, identify each account affected, record the transaction. 
A)  Identify each account affected, determine increase or decrease in each account, record the transaction. 
B)  Identify each account affected, record the transaction, determine increase or decrease in each account. 
C)  Record the transaction, identify each account affected, determine increase or decrease in each account. 
D)  Determine increase or decrease in each account, identify each account affected, record the transaction.

Question 19

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)  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 20

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

Accepted Answer

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

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

After initially recording a transaction,the data is then copied,or posted,to the:

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

When a business collects cash,the cash account is always debited.

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

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

The owner's capital account is increased by a debit.

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

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

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

The last step before preparing financial statements is to:

The trial balance is one of the three basic financial statements.

A business is started by receiving $5,000 cash from the owner.Please provide the journal entry (debits first,credits second.)

When is a trial balance usually prepared?

Which of the following journal entries would be recorded if a business purchased $200 of supplies by paying cash?

Which of the following is the order of steps to journalize an entry?

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

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

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

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

After initially recording a transaction,the data is then copied,or posted,to the:

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

When a business collects cash,the cash account is always debited.

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

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

The owner's capital account is increased by a debit.

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

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

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

The last step before preparing financial statements is to:

The trial balance is one of the three basic financial statements.

A business is started by receiving $5,000 cash from the owner.Please provide the journal entry (debits first,credits second.)

When is a trial balance usually prepared?

Which of the following journal entries would be recorded if a business purchased $200 of supplies by paying cash?

Which of the following is the order of steps to journalize an entry?

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

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

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