Question 1

A business purchased $200 of supplies on credit and recorded the following journal entry:   Supplies 200 Accounts payable 200\begin{array} { | l | r | r | } \hline 	ext { Supplies } & 200 & \\hline 	ext { Accounts payable } & & 200 \\hline\end{array} Supplies  Accounts payable ​200​200​​  Which of the following sets of ledger accounts reflects the posting of this transaction?

Accepted Answer

A)    Supplies 200\begin{array}{c|c}{	ext { Supplies }} \\hline  &200&\end{array}\quad\quad Supplies ​200​​​ Accounts payable 200\begin{array}{r|}	ext { Accounts payable } &\\hline &200\end{array} Accounts payable ​200​​ 
B)    Supplies 200∣\begin{array}{c}	ext { Supplies } \\hline 200 \mid\end{array} Supplies 200∣​​    Accounts payable ∣200\begin{array}{c}	ext { Accounts payable } \\hline  \quad \mid 200\end{array} Accounts payable ∣200​​ 
C)    Supplies 200\begin{array}{c|c}{	ext { Supplies }} \\hline  200&\end{array}\quad\quad Supplies 200​​​ Accounts payable 200\begin{array}{r|}	ext { Accounts payable } &\\hline 200\end{array} Accounts payable 200​​ 
D)    Supplies 200\begin{array}{c|c}{	ext { Supplies }} \\hline & 200\end{array}\quad\quad Supplies ​200​​ Accounts payable 200\begin{array}{r|}	ext { Accounts payable } &\\hline 200\end{array} Accounts payable 200​​

Question 2

A business makes a cash payment of $12 000 to an account payable.Which account is credited?

Accepted Answer

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

Question 3

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

Accepted Answer

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

Question 4

A listing of all account titles in numerical order is a(n) :

Accepted Answer

A)  ledger.
B)  journal.
C)  chart of accounts.
D)  income statement.

Question 5

Which of the following journal entries would be recorded if a business purchased equipment for $3 000 cash?

Accepted Answer

A)     Cash 3000 Accounts payable 3000\begin{array} { | l | r | r | } \hline 	ext { Cash } & 3000 & \\hline 	ext { Accounts payable } & & 3000 \\hline\end{array} Cash  Accounts payable ​3000​3000​​ 
B)     Cash 3000 Equipment 3000\begin{array} { | l | r | r | } \hline 	ext { Cash } & 3000 & \\hline 	ext { Equipment } & & 3000 \\hline\end{array} Cash  Equipment ​3000​3000​​ 
C)     Equipment 3000 Accounts payable 3000\begin{array} { | l | r | r | } \hline 	ext { Equipment } & 3000 & \\hline 	ext { Accounts payable } & & 3000 \\hline\end{array} Equipment  Accounts payable ​3000​3000​​ 
D)     Equipment 3000 Cash 3000\begin{array} { | l | r | r | } \hline 	ext { Equipment } & 3000 & \\hline 	ext { Cash } & & 3000 \\hline\end{array} Equipment  Cash ​3000​3000​​

Question 6

A journal entry for a $240 payment to purchase office supplies was erroneously recorded as a debit to Office supplies for $600 and a credit to Cash for $240.Which of the following statements correctly states the effect of the error on the trial balance?

Accepted Answer

A)  The sum of the debits will exceed the sum of the credits by $240.
B)  The sum of the debits will exceed the sum of the credits by $360.
C)  The sum of the credits will exceed the sum of the debits by $360.
D)  The sum of the debits will exceed the sum of the credits by $600.

Question 7

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

Accepted Answer

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

Question 8

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

Accepted Answer

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

Question 9

When a business makes a cash payment,the Cash account is always debited.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following accounts is an example of a liability?

Accepted Answer

A)  Bills payable
B)  Service revenue
C)  Accounts receivable
D)  Building

Question 11

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

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

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

Question 14

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

Accepted Answer

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

Question 15

The following transactions for the month of March have been journalised and posted to the proper accounts.

Mar 1 Martinez invested $10,000 cash in his new design services business.
Mar 2 Paid the first month's rent of $500.
Mar 3 Purchased equipment by paying $1000 cash and executing a loan payable for $5000.
Mar 4 Purchased office supplies for $750 cash.
Mar 5 Billed a client for $11,000 of design services completed.
Mar 6 Received $7000 on account for the services previously recorded.
What is the ending balance in the Service revenue account?

Accepted Answer

A)  $17,000
B)  $10,000
C)  $7000
D)  $11,000 D

Question 16

Which of the following accounts decreases with a credit?

Accepted Answer

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

Question 17

A business has the following transactions: The business is started by receiving $20 000 from the owner.The business purchases $500 in supplies on credit.The business purchases $2 000 in furniture on credit.The business renders services to various clients totalling $9 000 on credit.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)    Cash 5002000500Bal2000\begin{array} { c | r r }  { 	ext { Cash } } \\hline& & \& & 500 \& & 2000 \500 \\hline& &\mathrm{Bal} \quad 2000\end{array} Cash 500​​5002000Bal2000​​ 
B)    Cash 20000200030005001500 Bal 24000\begin{array} { r r | r }  { 	ext { Cash } } \\hline & 20000 & \&2000 & \&3000 & \& 500 & \& & 1500 \\hline 	ext { Bal } \quad 24000 &\end{array} Cash  Bal 24000​2000020003000500​1500​​ 
C)    Cash 20,0002000300050015000 Bal 16000\begin{array} { r | r r }  { 	ext { Cash } } \\hline &&20,000\2000 & & \3000 & & \500 & & \& & 15000 \\hline & 	ext { Bal } & 16000\end{array} Cash 20003000500​ Bal ​20,0001500016000​​ 
D)    Cash 20000200030005001500 Bal 16000\begin{array}{l}	ext { Cash }\\begin{array} { l r | r } \hline & 20000 \&& 2000 \& & 3000 \& & 500 \& 1500 & \\hline 	ext { Bal } & 16000 &\end{array}\end{array} Cash  Bal ​20000150016000​20003000500​​​

Question 18

Beetles Ltd recorded the following journal entry on 2 March 2016:   Cash 6000 Unearned revenue 5000\begin{array} { | l | l | l | } \hline 	ext { Cash } & 6000 & \\hline 	ext { Unearned revenue } & & 5000 \\hline\end{array} Cash  Unearned revenue ​6000​5000​​  From the journal entry above,identify the transaction on 2 March 2016.

Accepted Answer

A)  Beetles sold goods for $6000 cash.
B)  Beetles received $6000 for services to be performed in a later period.
C)  Beetles purchased goods worth $6000 and signed a one-year bill for the same.
D)  Beetles paid $6000 for services to be received at a later date.

Question 19

In a trial balance,total debits are always equal to total credits.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following accounts increases with a credit?

Accepted Answer

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

Exam 2: Recording Business Transactions

Correct Answer
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A business makes a cash payment of $12 000 to an account payable.Which account is credited?

Correct Answer
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A business pays cash back to the owner.Which account is debited?

Correct Answer
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A listing of all account titles in numerical order is a(n) :

Correct Answer
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Which of the following journal entries would be recorded if a business purchased equipment for $3 000 cash?

Correct Answer
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A journal entry for a $240 payment to purchase office supplies was erroneously recorded as a debit to Office supplies for $600 and a credit to Cash for $240.Which of the following statements correctly states the effect of the error on the trial balance?

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

Correct Answer
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For Drawings,the category of account and its normal balance are:

Correct Answer
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When a business makes a cash payment,the Cash account is always debited.

Correct Answer
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Which of the following accounts is an example of a liability?

Correct Answer
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For Supplies,the category of account and its normal balance are:

Correct Answer
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D

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

Correct Answer
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A company received $75 000 from a customer 'on account'.The journal entry would be to:

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

Correct Answer
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D

Which of the following accounts decreases with a credit?

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Beetles Ltd recorded the following journal entry on 2 March 2016: $\begin{array} { | l | l | l | } \hline \text { Cash } & 6000 & \\\hline \text { Unearned revenue } & & 5000 \\\hline\end{array}$ From the journal entry above,identify the transaction on 2 March 2016.

Correct Answer
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In a trial balance,total debits are always equal to total credits.

Correct Answer
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Which of the following accounts increases with a credit?

Correct Answer
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C

Exam 2: Recording Business Transactions

Correct AnswerverifiedShow Answer

A business makes a cash payment of $12 000 to an account payable.Which account is credited?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A listing of all account titles in numerical order is a(n) :

Correct AnswerverifiedShow Answer

Which of the following journal entries would be recorded if a business purchased equipment for $3 000 cash?

Correct AnswerverifiedShow Answer

A journal entry for a $240 payment to purchase office supplies was erroneously recorded as a debit to Office supplies for $600 and a credit to Cash for $240.Which of the following statements correctly states the effect of the error on the trial balance?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a business makes a cash payment,the Cash account is always debited.

Correct AnswerverifiedShow Answer

Which of the following accounts is an example of a liability?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedD

Which of the following accounts decreases with a credit?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In a trial balance,total debits are always equal to total credits.

Correct AnswerverifiedShow Answer

Which of the following accounts increases with a credit?

Correct AnswerverifiedC

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D

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D

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C