Chapter 2 Quiz
The order of the accounts in the ledger is: A. assets, liabilities, owner's capital, owner's drawing, revenues, expenses. B. revenues, assets, expenses, liabilities, owner's capital, owner's drawing. C. assets, revenues, expenses, liabilities, owner's capital, owner's drawing. D. owner's capital, assets, revenues, expenses, liabilities, owner's drawing.
A
A ledger: A. should show accounts in alphabetical order. B. is a collection of the entire group of accounts maintained by a company. C. is a book of original entry. D. contains only asset and liability accounts.
B
A revenue account: A. has a normal balance of a debit. B. is increased by credits. C. is decreased by credits. D. is increased by debits.
B
A trial balance will not balance if: A. a $450 payment on account is debited to Accounts Payable for $45 and credited to Cash for $45. B. a $100 cash drawing by the owner is debited to Owner's Drawing for $1,000 and credited to Cash for $100. C. a correct journal entry is posted twice. D. the purchase of supplies on account is debited to Supplies and credited to Cash.
B
A trial balance: A. proves the mathematical accuracy of journalized transactions. B. is a list of accounts with their balances at a given time. C. will not balance if a correct journal entry is posted twice. D. proves that all transactions have been recorded.
B
Accounts that normally have debit balances are: A. assets, expenses, and revenues. B. assets, liabilities, and owner's drawings. C. assets, owner's drawings, and expenses. D. assets, expenses, and owner's capital.
C
Before posting a payment of $5,000, the Accounts Payable of Senator Company has a normal balance of $16,000. The balance after posting this transaction was: A. Cannot be determined. B. $5,000. C. $11,000. D. $21,000.
C
Debits: A. increase both assets and liabilities. B. decrease assets and increase liabilities. C. increase assets and decrease liabilities. D. decrease both assets and liabilities.
C
The expanded accounting equation is: A. Assets = Liabilities - Owner's Capital - Owner's Drawing - Revenues - Expenses B. Assets = Liabilities + Owner's Capital + Owner's Drawing + Revenues - Expenses C. Assets = Liabilities + Owner's Capital - Owner's Drawing + Revenues - Expenses D. Assets + Liabilities = Owner's Capital + Owner's Drawing + Revenues + Expenses
C
The purchase of supplies on account should result in: A. a debit to Supplies and a credit to Accounts Receivable. B. a debit to Supplies Expense and a credit to Accounts Payable. C. a debit to Supplies and a credit to Accounts Payable. D. a debit to Supplies Expense and a credit to Cash.
C
The trial balance of Clooney Company had accounts with the following normal balances: Cash $5,000, Revenue $85,000, Salaries Payable $4,000, Salaries Expense $40,000, Rent Expense $10,000, Clooney, Capital $42,000; Clooney, Drawing $15,000; Equipment $61,000. In preparing a trial balance, the total in the debit column is: A. $216,000. B. $91,000. C. $131,000. D. $116,000.
C
Which of the following is not part of the recording process? A. Posting transactions. B. Entering transactions in a journal. C. Preparing a trial balance. D. Analyzing transactions.
C
Which of the following statements about a journal is false? A. It provides a chronological record of transactions. B. It helps to locate errors because the debit and credit amounts for each entry can be readily compared. C. It is not a book of original entry. D. It discloses in one place the complete effect of a transaction.
C
Posting: A. is an optional step in the recording process. B. transfers ledger transaction data to the journal. C. normally occurs before journalizing. Correct! D. transfers journal entries to ledger accounts.
D
Which of the following statements about an account is true? A. In its simplest form, an account consists of two parts. B. There are separate accounts for specific assets and liabilities but only one account for owner's equity items. C. The left side of an account is the credit or decrease side. D. An account is an individual accounting record of increases and decreases in specific asset, liability, and owner's equity items.
D
