Question 1

Debit means increase and credit means decrease for all accounts.

Accepted Answer

A) True 
 B)False

Question 2

A bookkeeper has debited an account for $3,500 and credited a liability account for $2,000.Which of the following would be an incorrect way to complete the recording of this transaction:

Accepted Answer

A)  Credit another asset account for $1,500.
B)  Credit another liability account for $1,500.
C)  Credit an expense account for $1,500.
D)  Credit the owner's capital account for $1,500.
E)  Debit another asset account for $1,500.

Question 3

Select the account below that normally has a credit balance.

Accepted Answer

A)  Cash.
B)  Office Equipment.
C)  Wages Payable.
D)  Owner,Withdrawals.
E)  Sales Salaries Expense.

Question 4

Unearned revenues are generally:

Accepted Answer

A)  Revenues that have been earned and received in cash.
B)  Revenues that have been earned but not yet collected in cash.
C)  Liabilities created when a customer pays in advance for products or services before the revenue is earned.
D)  Recorded as an asset in the accounting records.
E)  Increases to owners' capital.

Question 5

J.Smith withdrew $100 from Jay's Limo Services for personal use.Which of the following general journal entries will Jay's Limo Services make to record this transaction?

Accepted Answer

A)   
B)   
C)   
D)

Question 6

A debit is used to record which of the following:

Accepted Answer

A)  A decrease in an asset account.
B)  A decrease in an expense account.
C)  An increase in a revenue account.
D)  An increase in the owner's capital account.
E)  An increase in the owner's withdrawals account.

Question 7

An account balance is:

Accepted Answer

A)  The total of the credit side of the account.
B)  The total of the debit side of the account.
C)  The difference between the total debits and total credits for an account including the beginning balance.
D)  Assets = liabilities + equity.
E)  Always a credit.

Question 8

On a trial balance,if the Debit and Credit column totals are equal,then:

Accepted Answer

A)  All transactions have been recorded correctly.
B)  All entries from the journal have been posted to the ledger correctly.
C)  All ledger account balances are correct.
D)  Equal debits and credits have been recorded for transactions.
E)  The balance sheet would be correct.

Question 9

Source documents provide evidence of business transactions and are the basis for accounting entries.

Accepted Answer

A) True 
 B)False

Question 10

The credit purchase of a new oven for $4,700 was posted to Kitchen Equipment as a $4,700 debit and to Accounts Payable as a $4,700 debit.What effect would this error have on the trial balance?

Accepted Answer

A)  The total of the Debit column of the trial balance will exceed the total of the Credit column by $4,700.
B)  The total of the Credit column of the trial balance will exceed the total of the Debit column by $4,700.
C)  The total of the Debit column of the trial balance will exceed the total of the Credit column by $9,400.
D)  The total of the Credit column of the trial balance will exceed the total of the Debit column by $9,400.
E)  The total of the Debit column of the trial balance will equal the total of the Credit column.

Question 11

At the end of its first month of operations,Michael's Consulting Services reported net income of $25,000.They also had account balances of: Cash,$18,000;Office Supplies,$2,000 and Accounts Receivable $10,000.The owner's total investment for this first month was $5,000. Calculate the ending balance in the Owner's Capital account to be reported on the Statement of Owner's Equity.

Accepted Answer

A)  $30,000
B)  $25,000
C)  $20,000
D)  $5,000
E)  $7,000

Question 12

A journal entry that affects no more than two accounts is called a compound entry.

Accepted Answer

A) True 
 B)False

Question 13

All of the following are asset accounts except:

Accepted Answer

A)  Accounts Receivable.
B)  Buildings.
C)  Supplies expense.
D)  Equipment.
E)  Prepaid insurance.

Question 14

Compare the list of accounts below and choose the list that contains only accounts that would be classified as asset accounts on the Chart of Accounts.

Accepted Answer

A)  Accounts Payable;Cash;Supplies.
B)  Unearned Revenue;Accounts Payable;Owner's Withdrawals.
C)  Building;Prepaid Insurance;Supplies Expense.
D)  Cash;Prepaid Insurance;Equipment.
E)  Notes Payable;Cash;Owner's Withdrawals.

Question 15

Able Graphics received a $400 utility bill for the current month's electricity.It is not due until the end of the next month which is when they intend to pay it.Which of the following general journal entries will Able Graphics make to record this transaction?

Accepted Answer

A)   
B)   
C)   
D)

Question 16

During the month of March,Harley's Computer Services made purchases on account totaling $43,500.Also during the month of March,Harley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance.If the balance in the accounts payable account at the beginning of March was $77,300,what is the balance in accounts payable at the end of March?

Accepted Answer

A)  $83,900.
B)  $91,900.
C)  $6,600.
D)  $75,900.
E)  $4,900.

Question 17

Unearned revenues are classified as liabilities.

Accepted Answer

A) True 
 B)False

Question 18

If cash is received from customers in payment for products or services that have not yet been delivered to the customers,the business would record the cash receipt as:

Accepted Answer

A)  A debit to an unearned revenue account.
B)  A debit to a prepaid expense account.
C)  A credit to an unearned revenue account.
D)  A credit to a prepaid expense account.
E)  No entry is required at the time of collection.

Question 19

The process of transferring general journal entry information to the ledger is called:

Accepted Answer

A)  Double-entry accounting.
B)  Posting.
C)  Balancing an account.
D)  Journalizing.
E)  Not required unless debits do not equal credits.

Question 20

Trimble Graphic Design receives $1,500 from a client billed in a previous month for services provided.Which of the following general journal entries will Trimble Graphic Design make to record this transaction?

Accepted Answer

A)   
B)   
C)   
D)

Exam 2: Analyzing and Recording Transactions

Able Graphics received a $400 utility bill for the current month's electricity.It is not due until the end of the next month which is when they intend to pay it.Which of the following general journal entries will Able Graphics make to record this transaction?

Correct Answer
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Correct Answer
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J.Smith withdrew $100 from Jay's Limo Services for personal use.Which of the following general journal entries will Jay's Limo Services make to record this transaction?

Correct Answer
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A debit is used to record which of the following:

Correct Answer
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Compare the list of accounts below and choose the list that contains only accounts that would be classified as asset accounts on the Chart of Accounts.

Correct Answer
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Unearned revenues are generally:

Correct Answer
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The process of transferring general journal entry information to the ledger is called:

Correct Answer
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Unearned revenues are classified as liabilities.

Correct Answer
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If cash is received from customers in payment for products or services that have not yet been delivered to the customers,the business would record the cash receipt as:

Correct Answer
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On a trial balance,if the Debit and Credit column totals are equal,then:

Correct Answer
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Correct Answer
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Select the account below that normally has a credit balance.

Correct Answer
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A bookkeeper has debited an account for $3,500 and credited a liability account for $2,000.Which of the following would be an incorrect way to complete the recording of this transaction:

Correct Answer
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A journal entry that affects no more than two accounts is called a compound entry.

Correct Answer
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All of the following are asset accounts except:

Correct Answer
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The credit purchase of a new oven for $4,700 was posted to Kitchen Equipment as a $4,700 debit and to Accounts Payable as a $4,700 debit.What effect would this error have on the trial balance?

Correct Answer
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An account balance is:

Correct Answer
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Trimble Graphic Design receives $1,500 from a client billed in a previous month for services provided.Which of the following general journal entries will Trimble Graphic Design make to record this transaction?

Correct Answer
verified

Debit means increase and credit means decrease for all accounts.

Correct Answer
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Source documents provide evidence of business transactions and are the basis for accounting entries.

Correct Answer
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Exam 2: Analyzing and Recording Transactions

Able Graphics received a $400 utility bill for the current month's electricity.It is not due until the end of the next month which is when they intend to pay it.Which of the following general journal entries will Able Graphics make to record this transaction?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

J.Smith withdrew $100 from Jay's Limo Services for personal use.Which of the following general journal entries will Jay's Limo Services make to record this transaction?

Correct AnswerverifiedShow Answer

A debit is used to record which of the following:

Correct AnswerverifiedShow Answer

Compare the list of accounts below and choose the list that contains only accounts that would be classified as asset accounts on the Chart of Accounts.

Correct AnswerverifiedShow Answer

Unearned revenues are generally:

Correct AnswerverifiedShow Answer

The process of transferring general journal entry information to the ledger is called:

Correct AnswerverifiedShow Answer

Unearned revenues are classified as liabilities.

Correct AnswerverifiedShow Answer

If cash is received from customers in payment for products or services that have not yet been delivered to the customers,the business would record the cash receipt as:

Correct AnswerverifiedShow Answer

On a trial balance,if the Debit and Credit column totals are equal,then:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Select the account below that normally has a credit balance.

Correct AnswerverifiedShow Answer

A bookkeeper has debited an account for $3,500 and credited a liability account for $2,000.Which of the following would be an incorrect way to complete the recording of this transaction:

Correct AnswerverifiedShow Answer

A journal entry that affects no more than two accounts is called a compound entry.

Correct AnswerverifiedShow Answer

All of the following are asset accounts except:

Correct AnswerverifiedShow Answer

The credit purchase of a new oven for $4,700 was posted to Kitchen Equipment as a $4,700 debit and to Accounts Payable as a $4,700 debit.What effect would this error have on the trial balance?

Correct AnswerverifiedShow Answer

An account balance is:

Correct AnswerverifiedShow Answer

Trimble Graphic Design receives $1,500 from a client billed in a previous month for services provided.Which of the following general journal entries will Trimble Graphic Design make to record this transaction?

Correct AnswerverifiedShow Answer

Debit means increase and credit means decrease for all accounts.

Correct AnswerverifiedShow Answer

Source documents provide evidence of business transactions and are the basis for accounting entries.

Correct AnswerverifiedShow Answer

Correct Answer
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