Question 1

Posting a transaction means ________.

Accepted Answer

A)   calculating the balance in an account
B)   transferring data from the journal to the ledger
C)   preparing a summary of account balances
D)   finding the account number in the chart of accountsE) B) and D)
F) None of the above

Question 2

A compound journal entry has more than two accounts, but the total dollar value of the debits still must equal total dollar value of the credits.

Accepted Answer

A) True 
 B)False

Question 3

The Owner's Withdrawals account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 4

A posting reference column is used ________.

Accepted Answer

A)   while preparing the trial balance using the ledger
B)   when the information is transferred from the journal to the ledger
C)   when the information is transferred from the ledger to the post-closing trial balance
D)   while preparing the balance sheet using the trial balanceE) B) and C)
F) None of the above

Question 5

A business purchases $500 of office supplies on account. Which of the following accounts is credited?

Accepted Answer

A)   Cash
B)   Accounts Payable
C)   Office Supplies
D)   Service RevenueE) B) and C)
F) A) and B)

Question 6

Which of the following journal entries would be recorded if a business renders service and receives cash of $900 from the customer?

Accepted Answer

A)  
B)  
C)  
D)  E) None of the above
F) B) and C)

Question 7

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 PayableE) A) and B)
F) A) and C)

Question 8

The accounting process of transferring a transaction from the journal to the ledger is called ________.

Accepted Answer

A)   journalizing
B)   posting
C)   compounding
D)   sourcingE) None of the above
F) C) and D)

Question 9

An accounts receivable requires the business to pay cash in the future.

Accepted Answer

A) True 
 B)False

Question 10

A business paid salaries of $6,000 in cash. Record the transaction in the journal.

Accepted Answer

The answer of A business paid salaries of $6,000 in...

Question 11

For Owner's Capital, the category of account and its normal balance is ________.

Accepted Answer

A)   equity and a credit balance
B)   assets and a debit balance
C)   equity and a debit balance
D)   assets and a credit balanceE) C) and D)
F) None of the above

Question 12

A trial balance is a list of all of the accounts of a company with their balances at a point in time.

Accepted Answer

A) True 
 B)False

Question 13

A trial balance is the list of only a company's debit accounts along with their account numbers at a point in time.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

In reviewing the T-account for Accounts Payable, you find that the beginning balance is zero, the total increases are $7,400 and the total decreases are $4,900. This means that the ending balance of the account is a credit balance of $2,500.

Accepted Answer

A) True 
 B)False

Question 16

When is a trial balance usually prepared?

Accepted Answer

A)   after each entry is journalized
B)   before the financial statements are prepared
C)   after the financial statements are prepared
D)   at the beginning of an accounting periodE) All of the above
F) B) and D)

Question 17

Which of the following sequences is the normal sequence of flow of accounting data?

Accepted Answer

A)   Ledger → Journal → Source document
B)   Journal → Source document → Ledger
C)   Source document → Journal → Ledger
D)   Source document → Ledger → JournalE) A) and B)
F) A) and C)

Question 18

A business makes a payment in cash for advertising expense. Which of the following accounts is debited?

Accepted Answer

A)   Cash
B)   Accounts Payable
C)   Accounts Receivable
D)   Advertising ExpenseE) A) and B)
F) B) and C)

Question 19

For each transaction, identify which account is debited and which account is credited. Use proper account titles.

Accepted Answer

The answer of For each transaction, identify which account is...

Question 20

A business purchases $500 of office supplies on account. Which of the following accounts is debited?

Accepted Answer

A)   Cash
B)   Accounts Payable
C)   Office Supplies
D)   Utilities ExpenseE) C) and D)
F) None of the above

Exam 2: Recording Business Transactions

An accounts receivable requires the business to pay cash in the future.

Correct AnswerverifiedShow Answer

A business paid salaries of $6,000 in cash. Record the transaction in the journal.

Correct AnswerverifiedShow Answer

In reviewing the T-account for Accounts Payable, you find that the beginning balance is zero, the total increases are $7,400 and the total decreases are $4,900. This means that the ending balance of the account is a credit balance of $2,500.

Correct AnswerverifiedShow Answer

For Owner's Capital, the category of account and its normal balance is ________.

Correct AnswerverifiedShow Answer

A business makes a payment in cash for advertising expense. Which of the following accounts is debited?

Correct AnswerverifiedShow Answer

A trial balance is a list of all of the accounts of a company with their balances at a point in time.

Correct AnswerverifiedShow Answer

Which of the following journal entries would be recorded if a business renders service and receives cash of $900 from the customer?

Correct AnswerverifiedShow Answer

The Owner's Withdrawals account is increased by a debit.

Correct AnswerverifiedShow Answer

A trial balance is the list of only a company's debit accounts along with their account numbers at a point in time.

Correct AnswerverifiedShow Answer

The accounting process of transferring a transaction from the journal to the ledger is called ________.

Correct AnswerverifiedShow Answer

Posting a transaction means ________.

Correct AnswerverifiedShow Answer

For each transaction, identify which account is debited and which account is credited. Use proper account titles.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A compound journal entry has more than two accounts, but the total dollar value of the debits still must equal total dollar value of the credits.

Correct AnswerverifiedShow Answer

A posting reference column is used ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When is a trial balance usually prepared?

Correct AnswerverifiedShow Answer

A business purchases $500 of office supplies on account. Which of the following accounts is debited?

Correct AnswerverifiedShow Answer

Which of the following sequences is the normal sequence of flow of accounting data?

Correct AnswerverifiedShow Answer

A business purchases $500 of office supplies on account. Which of the following accounts is credited?

Correct AnswerverifiedShow Answer

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