Question 1
A business performed $8,000 of services. Their customer paid $3,000 of the amount right away but charged the remaining amount. To record this transaction, the business would:
Multiple Choice
Debit Cash $3,000; Credit Fees Income $3,000
Debit Cash $3,000 and Debit Accounts Receivable $5,000 and Credit Fees Income $8,000
Correct
Debit Cash $3,000 and Debit Accounts Payable $5,000; Credit Fees Income $8,000
Debit Accounts Receivable $8,000 and; Credit Fees Income $8,000
The greatest competitive advantage in the modern economy is a positive and engaged brain.
Question 2
On a statement of owner's equity, beginning capital is $152,000, Drawing for the year is $65,000, and the ending capital is $191,000. What is the amount of Net Income for the year?
Multiple Choice
$ 87,000
$126,000
$ 26,000
$104,000
Question 3
Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?
Multiple Choice
debit Ty Knott, Drawing, and credit Cash
debit Cash and credit Salary Expense
debit Cash and credit Ty Knott, Capital
debit Salary Expense and credit Cash
Question 4
Credits are used to record:
Multiple Choice
increases in liabilities and revenues.
decreases in assets and owner's equity and increases in liabilities.
decreases in liabilities and increases in assets and owner's equity.
increases in assets, liabilities, and owner's equity.
Question 5
Which of the following does NOT describe a transposition?
Multiple Choice
It is an error.
It causes the trial balance to be out of balance.
It causes the difference between the debit total and the credit total to be divisible by 2.
It involves misplaced digits in a number.
Question 6
The "Net Income" or "Net Loss" is transferred from the income statement to the
Multiple Choice
chart of accounts.
statement of owner's equity.
trial balance.
balance sheet.
Question 7
Which of the following would cause the Trial Balance to be out of balance?
Multiple Choice
Placing the Rent Expense account balance in the Debit column
Placing the Equipment account balance in the Debit column
Placing the Capital account balance in the Credit column
Placing the Accounts Receivable balance in the Credit column
Question 8
Which of the following is not one of the formal financial statements that is made available to all users of the financial statements.
Multiple Choice
Income Statement
Trial Balance
Statement of Owner's Equity
Balance Sheet
Question 9
The normal balance of an account is the:
Multiple Choice
decrease side of the account.
increase side of the account.
the right side of the account.
the left side of the account.
Question 10
Which of the following would cause the Debit column and the Credit column of the Trial Balance to be unequal?
Multiple Choice
Placing the Office Equipment balance in the Debit column
Placing the Rent Expense balance in the Debit column
Placing the Fees Income balance in the Credit column
Placing the Prepaid Rent balance in the Credit column
Question 11
Which of the following accounts is NOT a nominal account?
Multiple Choice
Rent Revenue
Moriah Paige, Drawing
Salaries Expense
Office Supplies
Question 12
Which of the following transactions increase owner's equity?
Multiple Choice
owner withdrawals for personal use
earning revenue
paying expenses
receiving cash from customers on account
Question 13
Which of the following types of accounts normally have debit balances?
Multiple Choice
assets, liabilities, and owner's equity
assets and revenue
expenses and assets
liabilities and owner's equity
Question 14
A business earns $4,000 from various charge account clients. To record this transaction, the business would:
Multiple Choice
Debit Accounts Receivable; Credit Fees Income
Debit Accounts Receivable; Credit Cash
Debit Accounts Payable; Credit Fees Income
Debit Cash; Credit Accounts Receivable
Question 15
A business purchases supplies on account. The entry to record this transaction is:
Multiple Choice
Debit to Cash; Credit Supplies
Debit to Supplies; Credit Accounts Receivable
Debit Supplies; Credit Accounts Payable
Debit Supplies; Credit to Cash
Question 16
When charge customers pay cash to apply against their accounts, the amount is recorded:
Multiple Choice
on the left side of the Cash account and the right side of the Fees Income account.
on the left side of the Cash account and the left side of the Accounts Receivable account.
on the left side of the Accounts Payable account and the right side of the Cash account.
on the left side of the Cash account and the right side of the Accounts Receivable account.
Question 17
Which of the following represents the proper sequence for preparing the financial statements?
Multiple Choice
income statement, balance sheet, statement of owner's equity
balance sheet, statement of owner's equity, income statement
statement of owner's equity, income statement, balance sheet
income statement, statement of owner's equity, balance sheet
Question 18
The ABC Company paid cash on account for supplies purchased last month. This would be recorded in the T-accounts as a:
Multiple Choice
debit Accounts Receivable and credit Cash.
debit to Accounts Payable and credit Cash.
debit Supplies and credit Accounts Payable.
debit Cash and credit Supplies.
Question 19
Select the entry below to record the payment to employees for work performed during the pay period?
Multiple Choice
debit Salary Expense and credit Cash
debit Cash, and credit Accounts Receivable
debit Salary Expense and credit Accounts Receivable
debit Cash and credit Salary Expense
Question 20
The ending capital balance appears on what financial statement(s)
Multiple Choice
only on the balance sheet.
statement of owner's equity and the balance sheet.
income statement and the statement of owner's equity.
income statement and balance sheet.
Question 21
The classification and normal balance of the accounts receivable account is:
Multiple Choice
a revenue with a debit balance.
an asset with a credit balance.
a liability with a debit balance.
an asset with a debit balance.
Question 22
The account used to record increases in owner's equity from the sale of goods or services is:
Multiple Choice
the capital account.
the cash account.
the drawing account.
the fees income account.
Question 23
Debits are used to record increases in:
Multiple Choice
revenue and owner's equity.
assets and liabilities.
assets and revenue.
assets and expenses.
Question 24
A business pays a creditor on account. The entry to record this transaction is:
Multiple Choice
Debit Accounts Receivable; Credit Accounts Payable
Debit Cash; Credit Accounts Payable
Debit Accounts Receivable; Credit to Cash
Debit Accounts Payable; Credit Cash
Question 25
A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:
Multiple Choice
Debiting Utilities Expense; Crediting Accounts Receivable
Debiting Utilities Expense; Crediting Cash
Debiting Utilities Expense; Crediting Accounts Payable
Debiting Accounts Payable; Crediting Utilities Expense
Question 26
A business purchases equipment costing $5,500. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:
Multiple Choice
Debit Equipment $5,500; Credit Cash $1,500 and Credit Accounts Payable $4,000
Debit Equipment $4,000; Credit Accounts Payable $4,000
Debit Equipment $5,500; Credit Accounts Payable $5,500
Debit Equipment $1,500; Credit Cash $1,500
Question 27
An accounting system that involves recording the effects of each transaction as debits and credits is:
Multiple Choice
preparing financial statements.
completing one T account.
the double-entry system.
analyzing a business transaction.
Question 28
The total of the figures on the left side of a Cash account is $36,700. The total of the figures on the right side is $16,250. The balance of this account:
Multiple Choice
is $20,450 and would be recorded on the right side of the account.
is $52,950 and would be recorded on the right side of the account.
is $52,950 and would be recorded on the left side of the account.
is $20,450 and would be recorded on the left side of the account.
Question 29
The Net Income appears as a separate line item on what two statements?
Multiple Choice
the statement of owner's equity and the income statement
the income statement and the balance sheet
the trial balance and the income statement
the statement of owner's equity and the balance sheet
Question 30
When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by:
Multiple Choice
5.
2.
3.
9.
A business performed $8,000 of services. Their customer paid $3,000 of the amount right away but charged the remaining amount. To record this transaction, the business would:
Multiple Choice
Debit Cash $3,000; Credit Fees Income $3,000
Debit Cash $3,000 and Debit Accounts Receivable $5,000 and Credit Fees Income $8,000
Correct
Debit Cash $3,000 and Debit Accounts Payable $5,000; Credit Fees Income $8,000
Debit Accounts Receivable $8,000 and; Credit Fees Income $8,000
The greatest competitive advantage in the modern economy is a positive and engaged brain.
Question 2
On a statement of owner's equity, beginning capital is $152,000, Drawing for the year is $65,000, and the ending capital is $191,000. What is the amount of Net Income for the year?
Multiple Choice
$ 87,000
$126,000
$ 26,000
$104,000
Question 3
Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?
Multiple Choice
debit Ty Knott, Drawing, and credit Cash
debit Cash and credit Salary Expense
debit Cash and credit Ty Knott, Capital
debit Salary Expense and credit Cash
Question 4
Credits are used to record:
Multiple Choice
increases in liabilities and revenues.
decreases in assets and owner's equity and increases in liabilities.
decreases in liabilities and increases in assets and owner's equity.
increases in assets, liabilities, and owner's equity.
Question 5
Which of the following does NOT describe a transposition?
Multiple Choice
It is an error.
It causes the trial balance to be out of balance.
It causes the difference between the debit total and the credit total to be divisible by 2.
It involves misplaced digits in a number.
Question 6
The "Net Income" or "Net Loss" is transferred from the income statement to the
Multiple Choice
chart of accounts.
statement of owner's equity.
trial balance.
balance sheet.
Question 7
Which of the following would cause the Trial Balance to be out of balance?
Multiple Choice
Placing the Rent Expense account balance in the Debit column
Placing the Equipment account balance in the Debit column
Placing the Capital account balance in the Credit column
Placing the Accounts Receivable balance in the Credit column
Question 8
Which of the following is not one of the formal financial statements that is made available to all users of the financial statements.
Multiple Choice
Income Statement
Trial Balance
Statement of Owner's Equity
Balance Sheet
Question 9
The normal balance of an account is the:
Multiple Choice
decrease side of the account.
increase side of the account.
the right side of the account.
the left side of the account.
Question 10
Which of the following would cause the Debit column and the Credit column of the Trial Balance to be unequal?
Multiple Choice
Placing the Office Equipment balance in the Debit column
Placing the Rent Expense balance in the Debit column
Placing the Fees Income balance in the Credit column
Placing the Prepaid Rent balance in the Credit column
Question 11
Which of the following accounts is NOT a nominal account?
Multiple Choice
Rent Revenue
Moriah Paige, Drawing
Salaries Expense
Office Supplies
Question 12
Which of the following transactions increase owner's equity?
Multiple Choice
owner withdrawals for personal use
earning revenue
paying expenses
receiving cash from customers on account
Question 13
Which of the following types of accounts normally have debit balances?
Multiple Choice
assets, liabilities, and owner's equity
assets and revenue
expenses and assets
liabilities and owner's equity
Question 14
A business earns $4,000 from various charge account clients. To record this transaction, the business would:
Multiple Choice
Debit Accounts Receivable; Credit Fees Income
Debit Accounts Receivable; Credit Cash
Debit Accounts Payable; Credit Fees Income
Debit Cash; Credit Accounts Receivable
Question 15
A business purchases supplies on account. The entry to record this transaction is:
Multiple Choice
Debit to Cash; Credit Supplies
Debit to Supplies; Credit Accounts Receivable
Debit Supplies; Credit Accounts Payable
Debit Supplies; Credit to Cash
Question 16
When charge customers pay cash to apply against their accounts, the amount is recorded:
Multiple Choice
on the left side of the Cash account and the right side of the Fees Income account.
on the left side of the Cash account and the left side of the Accounts Receivable account.
on the left side of the Accounts Payable account and the right side of the Cash account.
on the left side of the Cash account and the right side of the Accounts Receivable account.
Question 17
Which of the following represents the proper sequence for preparing the financial statements?
Multiple Choice
income statement, balance sheet, statement of owner's equity
balance sheet, statement of owner's equity, income statement
statement of owner's equity, income statement, balance sheet
income statement, statement of owner's equity, balance sheet
Question 18
The ABC Company paid cash on account for supplies purchased last month. This would be recorded in the T-accounts as a:
Multiple Choice
debit Accounts Receivable and credit Cash.
debit to Accounts Payable and credit Cash.
debit Supplies and credit Accounts Payable.
debit Cash and credit Supplies.
Question 19
Select the entry below to record the payment to employees for work performed during the pay period?
Multiple Choice
debit Salary Expense and credit Cash
debit Cash, and credit Accounts Receivable
debit Salary Expense and credit Accounts Receivable
debit Cash and credit Salary Expense
Question 20
The ending capital balance appears on what financial statement(s)
Multiple Choice
only on the balance sheet.
statement of owner's equity and the balance sheet.
income statement and the statement of owner's equity.
income statement and balance sheet.
Question 21
The classification and normal balance of the accounts receivable account is:
Multiple Choice
a revenue with a debit balance.
an asset with a credit balance.
a liability with a debit balance.
an asset with a debit balance.
Question 22
The account used to record increases in owner's equity from the sale of goods or services is:
Multiple Choice
the capital account.
the cash account.
the drawing account.
the fees income account.
Question 23
Debits are used to record increases in:
Multiple Choice
revenue and owner's equity.
assets and liabilities.
assets and revenue.
assets and expenses.
Question 24
A business pays a creditor on account. The entry to record this transaction is:
Multiple Choice
Debit Accounts Receivable; Credit Accounts Payable
Debit Cash; Credit Accounts Payable
Debit Accounts Receivable; Credit to Cash
Debit Accounts Payable; Credit Cash
Question 25
A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:
Multiple Choice
Debiting Utilities Expense; Crediting Accounts Receivable
Debiting Utilities Expense; Crediting Cash
Debiting Utilities Expense; Crediting Accounts Payable
Debiting Accounts Payable; Crediting Utilities Expense
Question 26
A business purchases equipment costing $5,500. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:
Multiple Choice
Debit Equipment $5,500; Credit Cash $1,500 and Credit Accounts Payable $4,000
Debit Equipment $4,000; Credit Accounts Payable $4,000
Debit Equipment $5,500; Credit Accounts Payable $5,500
Debit Equipment $1,500; Credit Cash $1,500
Question 27
An accounting system that involves recording the effects of each transaction as debits and credits is:
Multiple Choice
preparing financial statements.
completing one T account.
the double-entry system.
analyzing a business transaction.
Question 28
The total of the figures on the left side of a Cash account is $36,700. The total of the figures on the right side is $16,250. The balance of this account:
Multiple Choice
is $20,450 and would be recorded on the right side of the account.
is $52,950 and would be recorded on the right side of the account.
is $52,950 and would be recorded on the left side of the account.
is $20,450 and would be recorded on the left side of the account.
Question 29
The Net Income appears as a separate line item on what two statements?
Multiple Choice
the statement of owner's equity and the income statement
the income statement and the balance sheet
the trial balance and the income statement
the statement of owner's equity and the balance sheet
Question 30
When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by:
Multiple Choice
5.
2.
3.
9.
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