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Exam 2: Recording Business Transactions

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Question 51

Multiple Choice

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A business makes a cash payment of $12,000 to a creditor. Which of the following accounts will be credited?

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

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Question 52

Multiple Choice

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For Revenues, the category of account and its normal balance is:

A) owner's equity and a credit balance.
B) assets and a debit balance.
C) assets and a credit balance.
D) owner's equity and a debit balance.

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Question 53

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The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. I Martinez invested $\$ 9,000$ cash in his new design services business. Mar. 2 Paid the first month 5 rent of \$800. Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $5,000. Mar. 4 Purchased office supplies for $\$ 750$ cash. Mar. 5 Eilled a client for $\$ 10,000$ of design services completed. Mar. 6 Received $8,000 on account for the services previously recorded. -According to the above transactions. What is the ending balance in the Service Revenue account?

A business has the following transactions: the business is started by receiving $20,000 from the owner. The business purchases $500 of office supplies on account. The business purchases $2,000 of furniture on account. The business renders services to various clients totaling $10,000 on account. The business pays out $2,000 for salaries expense and $3,000 for Rent Expense. Business pays $500 to supplier for the office supplies purchased earlier. The business collects $3,000 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:

The Salaries Payable account is a(n) :

A business purchased $3,500 of office supplies for cash. Which of the following sets of ledger accounts reflect the posting of this transaction?

Which of the following statements is true of revenue?

Debit refers to the right side of the T-account and credit refers to the left side.

A business makes a cash payment to a supplier on account (for Office Supplies which were purchased earlier.) Which of the following accounts will be credited?

An accounting entry that is characterized by having multiple debits and/or multiple credits is called a ________ entry.

When a business records revenue earned, the Revenue account is credited.

A business borrows cash by signing a note payable. Which of the following accounts will be credited?

Which of the following is a financial statement that presents a business's accounting equation?

For Expenses, the category of account and its normal balance is:

The balances in the accounts of liabilities and revenues are increased with a credit.

A payable involves a future receipt of cash.

A business pays cash back to the owner. Which of the following accounts will be debited?

The trial balance summarizes the balances of assets, liabilities, and equity.

________ represents a debt owed for renting a building currently.

Which of the following factors is assessed using the debt ratio?