Consider the following accounts and identify each as an asset (A),liability (L),or equity (E). \[\begin{array} { | l | l | } \hline \text { Owner, Capital } &\quad\quad\quad\quad \\ \hline \text { Accounts Receivable } & \\ \hline \text { Owner, Withdrawals } & \\ \hline \text { Service Revenue } & \\ \hline \text { Prepaid Rent } & \\ \hline \end{array}\]

\[\begin{array} { | l | l | } \hline \t

Donaldson's Delivery Company began operations on January 1,2019.The following Trial Balance was prepared on December 31,2019. Donaldson's Delivery Service Company Trial Balance December 31,2019 \[\begin{array} { l c c } \text { Accuunt Title } & \text { Debit } & \text { Credit } \\ \text { Cash } & \$ 15,500 & \\ \text { Accounts Receivable } & 8,000 & \\ \text { Prepaid Rent } & 2,400 & \\ \text { Office Supplies } & 1,400 & \\ \text { Larnd } & 25,000 & \\ \text { Building } & 32,000 & \\ \text { Equipment } & 23,000 & \\ \text { Accounts Payable } & & \$ 10,400 \\ \text { Unearned Reveruse } & & 2,500 \\ \text { Notes Payble } & & 20,000 \\ \text { Donaldson, Capital } & & 57,000 \\ \text { Donaldson, Withdrawals } & 6,400 & \\ \text { Service Reveriue } & & 83,900 \\ \text { Salaries Expense } & 28,000 & \\ \text { Rent Expense } & 18,000 & \\ \text { Truck Expense } & 12,400 & \\ \text { Office Expense } & \underline{1,700 } &\underline{\quad\quad} \\ \text { Total } & \underline{\$173,800}& \underline{\$173,800} \\ \end{array}\] What is the net income for the year ended December 31,2019?

A) $17,400 B) $23,800 C) $26,300 D) $74,400 A) $17,400 B) $23,800 C) $26,300 D) $74,400

The following are selected current month's balances for Allbright Enterprises. \[\begin{array} { | l | r | } \hline \text { Accounts Payable } & \$ 9,000 \\ \hline \text { Revenue } & 12,000 \\ \hline \text { Cash } & 4,000 \\ \hline \text { Expenses } & 1,200 \\ \hline \text { Furniture } & 14,000 \\ \hline \text { Accounts Receivable } & 15,000 \\ \hline \text { Allbright, Capital } & 9,250 \\ \hline \text { Notes Payable } & 3,950 \\ \hline \end{array}\] Based on this information,what is the total amount of debits for the trial balance?

A) $29,000 B) $30,200 C) $33,000 D) $34,200 A) $29,000 B) $30,200 C) $33,000 D) $34,200

Exam 2: Recording Business Transactions

Consider the following accounts and identify each as an asset (A),liability (L),or equity (E). Owner, Capital Accounts Receivable Owner, Withdrawals Service Revenue Prepaid Rent

(Essay)

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Question 201

Which of the following journal entries would be recorded if a business purchased office supplies on account in a previous accounting period and now makes a cash payment of $750 to the supplier to settle the account?

(Multiple Choice)

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Question 202

The trial balance is one of the basic financial statements that is issued to external users of the business.

(True/False)

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Question 203

A liability created when a business receives cash from customers in advance of providing services or delivering goods is called a(n)________.

(Multiple Choice)

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Question 204

The balances in the liability and revenue accounts are increased with a credit.

(True/False)

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Question 205

Which of the following accounts increases with a debit?

(Multiple Choice)

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Question 206

Which of the following is the correct formula to calculate the debt ratio?

(Multiple Choice)

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Question 207

Which one of the following account groups normally has a credit balance?

(Multiple Choice)

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Question 208

Which of the following accounts decreases with a debit?

(Multiple Choice)

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Question 209

A chart of accounts is a detailed record of the changes in a particular asset,liability,or equity account during a specified period.

(True/False)

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Question 210

A business buys $300 of office supplies on account.Which of the following accounts is debited?

(Multiple Choice)

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Question 211

Which of the following is used by both internal and external users?

(Multiple Choice)

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Question 212

The Accounts Receivable account of Brownstone Company has the following postings: Calculate the ending balance of the account.

(Multiple Choice)

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Question 213

Both the chart of accounts and the ledger ________.

(Multiple Choice)

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Question 214

In a computerized environment,the posting process is completed automatically when the user enters the journal entry.

(True/False)

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Question 215

Donaldson's Delivery Company began operations on January 1,2019.The following Trial Balance was prepared on December 31,2019. Donaldson's Delivery Service Company Trial Balance December 31,2019 Accuunt Title Debit Credit Cash \ 15,500 Accounts Receivable 8,000 Prepaid Rent 2,400 Office Supplies 1,400 Larnd 25,000 Building 32,000 Equipment 23,000 Accounts Payable \ 10,400 Unearned Reveruse 2,500 Notes Payble 20,000 Donaldson, Capital 57,000 Donaldson, Withdrawals 6,400 Service Reveriue 83,900 Salaries Expense 28,000 Rent Expense 18,000 Truck Expense 12,400 Office Expense Total What is the net income for the year ended December 31,2019?

(Multiple Choice)

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Question 216

A business repays the amount borrowed on a note with cash.Which of the following accounts is credited?

(Multiple Choice)

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Question 217

The following are selected current month's balances for Allbright Enterprises. Accounts Payable \ 9,000 Revenue 12,000 Cash 4,000 Expenses 1,200 Furniture 14,000 Accounts Receivable 15,000 Allbright, Capital 9,250 Notes Payable 3,950 Based on this information,what is the total amount of debits for the trial balance?

(Multiple Choice)

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Question 218

An asset account is increased by a debit.

(True/False)

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Question 219

Exam 2: Recording Business Transactions

Consider the following accounts and identify each as an asset (A),liability (L),or equity (E). Owner, Capital Accounts Receivable Owner, Withdrawals Service Revenue Prepaid Rent

Which of the following journal entries would be recorded if a business purchased office supplies on account in a previous accounting period and now makes a cash payment of $750 to the supplier to settle the account?

The trial balance is one of the basic financial statements that is issued to external users of the business.

A liability created when a business receives cash from customers in advance of providing services or delivering goods is called a(n)________.

The balances in the liability and revenue accounts are increased with a credit.

Which of the following accounts increases with a debit?

Which of the following is the correct formula to calculate the debt ratio?

Which one of the following account groups normally has a credit balance?

Which of the following accounts decreases with a debit?

A chart of accounts is a detailed record of the changes in a particular asset,liability,or equity account during a specified period.

A business buys $300 of office supplies on account.Which of the following accounts is debited?

Which of the following is used by both internal and external users?

The Accounts Receivable account of Brownstone Company has the following postings: Calculate the ending balance of the account.

Both the chart of accounts and the ledger ________.

In a computerized environment,the posting process is completed automatically when the user enters the journal entry.

A business repays the amount borrowed on a note with cash.Which of the following accounts is credited?

An asset account is increased by a debit.

Accounting and the Business Environment

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets,natural Resources,and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

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