Question 1

State whether the normal balance of each of the following accounts is a debit or credit.

Accepted Answer

The answer of State whether the normal balance of each...

Question 2

Which of the following accounts is an asset?

Accepted Answer

A)  Salaries Expense
B)  Accounts Payable
C)  Service Revenue
D)  Prepaid Expense

Question 3

Which of the following sequences states the order in which accounts are listed on a trial balance?

Accepted Answer

A)  Equity → Assets → Liabilities
B)  Liabilities → Assets → Equity
C)  Assets → Equity → Liabilities
D)  Assets → Liabilities → Equity

Question 4

The ability of a company to pay its debts can be evaluated by using the ________.

Accepted Answer

A)  earnings per share
B)  return on assets ratio
C)  debt ratio
D)  fully diluted earnings per share

Question 5

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

Accepted Answer

A)  Notes Payable
B)  Accounts Payable
C)  Notes Receivable
D)  Cash

Question 6

A business purchases equipment with $8,000 cash.Which of the following accounts is credited?

Accepted Answer

A)  Cash
B)  Accounts Payable
C)  Smith,Capital
D)  Equipment

Question 7

The Owner,Capital account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 8

Journalizing a transaction involves ________.

Accepted Answer

A)  calculating the balance in an account using journal entries
B)  posting the account balances in the chart of accounts
C)  preparing a summary of account balances
D)  recording the data only in the journal

Question 9

After initially recording a transaction,the data is then transferred to the ________.

Accepted Answer

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

Question 10

Which of the following is a liability account?

Accepted Answer

A)  Accounts Payable
B)  Prepaid Expense
C)  Salaries Expense
D)  Service Revenue

Question 11

Provide a definition of each of the following accounting terms.

Accepted Answer

The answer of Provide a definition of each of the...

Question 12

Which of the following accounts decreases with a debit?

Accepted Answer

A)  Accounts Receivable
B)  Notes Payable
C)  Cash
D)  Rent Expense

Question 13

Wilson Furniture Company is a sole proprietorship.Wilson contributed $40,000 of cash in exchange for capital.Which of the following accounts will be debited?

Accepted Answer

A)  Accounts Receivable
B)  Cash
C)  Wilson,Capital
D)  Accounts Payable

Question 14

Adams Company recorded the following journal entry on March 2,2018.  From the journal entry above,identify the transaction on March 2,2018.

Accepted Answer

A)  Adams purchased goods worth $8,500 and signed a one-year note for the same amount.
B)  Adams sold goods for $8,500 cash.
C)  Adams received $8,500 for services to be performed in a later period.
D)  Adams paid $8,500 for services to be received at a later date.

Question 15

Which of the following statements is TRUE of a trial balance?

Accepted Answer

A)  A trial balance has the same format as a balance sheet.
B)  A trial balance presents data in debit and credit format.
C)  A trial balance shows the total amounts of assets and liabilities,but not equity.
D)  A trial balance is prepared after the balance sheet.

Question 16

A business performs services for $26,000 and collects cash from the customer.Which of the following accounts will be debited?

Accepted Answer

A)  Cash
B)  Accounts Receivable
C)  Service Revenue
D)  Accounts Payable

Question 17

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

Accepted Answer

A)  Cash
B)  Accounts Payable
C)  Bank
D)  Accounts Receivable

Question 18

Musical Instruments Company sells musical instruments.On December 31,2019,after its first month of business,the sole proprietorship had the following balances in its accounts,listed alphabetically.
  Determine the balance in the cash account and prepare the trial balance.

Accepted Answer

The cash balance is the differ...

Question 19

A customer's promise to pay in the future for services or goods sold is called a(n) ________.

Accepted Answer

A)  Accounts Receivable
B)  Accounts Payable
C)  Unearned Revenue
D)  Notes Payable

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 2: Recording Business Transactions

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

Correct AnswerverifiedShow Answer

A business performs services for $26,000 and collects cash from the customer.Which of the following accounts will be debited?

Correct AnswerverifiedShow Answer

Which of the following accounts is an asset?

Correct AnswerverifiedShow Answer

Provide a definition of each of the following accounting terms.

Correct AnswerverifiedShow Answer

After initially recording a transaction,the data is then transferred to the ________.

Correct AnswerverifiedShow Answer

Which of the following statements is TRUE of a trial balance?

Correct AnswerverifiedShow Answer

Musical Instruments Company sells musical instruments.On December 31,2019,after its first month of business,the sole proprietorship had the following balances in its accounts,listed alphabetically. Determine the balance in the cash account and prepare the trial balance.

Correct AnswerverifiedThe cash balance is the differ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

The Owner,Capital account is increased by a debit.

Correct AnswerverifiedShow Answer

Journalizing a transaction involves ________.

Correct AnswerverifiedShow Answer

A customer's promise to pay in the future for services or goods sold is called a(n) ________.

Correct AnswerverifiedShow Answer

Which of the following sequences states the order in which accounts are listed on a trial balance?

Correct AnswerverifiedShow Answer

Which of the following accounts decreases with a debit?

Correct AnswerverifiedShow Answer

State whether the normal balance of each of the following accounts is a debit or credit.

Correct AnswerverifiedShow Answer

The ability of a company to pay its debts can be evaluated by using the ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is a liability account?

Correct AnswerverifiedShow Answer

Wilson Furniture Company is a sole proprietorship.Wilson contributed $40,000 of cash in exchange for capital.Which of the following accounts will be debited?

Correct AnswerverifiedShow Answer

A business purchases equipment with $8,000 cash.Which of the following accounts is credited?

Correct AnswerverifiedShow Answer

Adams Company recorded the following journal entry on March 2,2018. From the journal entry above,identify the transaction on March 2,2018.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The cash balance is the differ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified