Chapter 2: Accounting Final

Nathville Laundry reported assets of $800 and equity of $480. What is Nathville's debt ratio? A. 60% B. 40% C. 67% D. Not enough information is provided

B

Pixel Copies recorded a cash collection on account by debiting Cash and crediting Accounts Payable. What will the trial balance show for this error? A. Cash is overstated B. Liabilities are overstated C. Expenses are overstated D. The trial balance will not balance

B

Sedlor Properties purchased office supplies on account for $800. Which journal entry records the payment on account of those office supplies? Debit Credit A. Accounts Payable 800 Accounts Receivables 800 B. Accounts Payable 800 Cash 800 C. Cash 800 Accounts Payable 800 D. Office Supplies 800 Cash 800

B

Your business purchased office supplies of $2,500 on account. The journal entry to record this transaction is as follows: Debit Credit A. Office Supplies 2,500 Accounts Receivables 2,500 B. Office Supplies 2,500 Accounts Payable 2,500 C. Accounts Payable 2,500 Office Supplies 2,500 D. Cash 2,500 Accounts Payable 2,500

B

Which of the following accounts is a liability? A. Accounts Receivables B. Service Revenue C. Unearned Revenue D. Prepaid Rent Expense

C

The detailed record of the changes in a particular asset, liability, or stockholder equity is called A. An account B. A journal C. A ledger D. A trial balance

A

Which sequence correctly summarizes the accounting process? A. Journalize transactions, post to the accounts, prepare a trial balance. B. Journalize transactions, prepare a trial balance, post to the accounts C. Post to the accounts, journalize transactions, prepare a trial balance D. Prepare a trial balance, journalize transactions, post to the accounts

A

Posting a $2,500 purchase of office supplies on account appears as follows: A. Cash: Credit:2,500 Office Supplies: Debit:2,500 B. Office Supplies: Credit:2,500 Accounts Payable: Debit:2,500 C. Office Supplies: Debit: 2,500 Accounts Receivables: Credit:2,500 D. Office Supplies: Debit:2,500 Accounts Payable: Credit:2,500

D

The left side of an account is used to record which of the following? A. Debit or credit, depending on the type of account B. Increases C. Credits D. Debits

D

Which of the following statements is correct? A. Prepaid Expenses are decreased with a debit B. Unearned Revenue is increased with a debit C. Rent Expense is increased with a credit D. Accounts Payable is increased with a credit

D