Chapter 2 - ACCT 2331

ABC Company made a payment on account of $350. How would you record this transaction? - Cash 350 Accounts Receivable 350 - Cash 350 Accounts Payable 350 - Accounts Payable 350 Cash 350 - Accounts Receivable 350 Cash 350

Accounts Payable 350 Cash 350

A company purchases a $100,000 Building, makes a down payment of $15,000 and signs a Note for the rest. How would you record the transaction? - Building 100,000 Cash 15,000 Accounts Payable 85,000 - Building 100,000 Cash 15,000 Common Stock 85,000 - Building 100,000 Cash 100,000 - Building 100,000 Cash 15,000 Note Payable 85,000

Building 100,000 Cash 15,000 Note Payable 85,000

A business person starts a company by giving the company $20,000 cash and receiving stock. How would you record the information for the business? - Cash 20,000 Retained Earnings 20,000 - Cash 20,000 Common Stock 20,000 - Common Stock 20,000 Cash 20,000 - Cash 20,000 Service Revenue 20,000

Cash 20,000 Common Stock 20,000

ABC Company received a payment on account of $350. How would you record this transaction? - Cash 350 Accounts Receivable 350 - Cash 350 Accounts Payable 350 - Accounts Payable 350 Cash 350 - Accounts Receivable 350 Cash 350

Cash 350 Accounts Receivable 350

Which of the following accounts have a normal debit balance? - Assets and Revenues - Liabilities and Revenues - Expenses and Assets - Liabilities and Retained Earnings

Expenses and Assets

Transactions are originally recorded in a(n) - Ledger - Journal - Expanded Accounting Equation - Trial Balance

Journal

Which of the following are DECREASED with a debit? - Assets and Revenues - Liabilities and Revenues - Expenses and Assets - Liabilities and Retained Earnings

Liabilities and Revenues

The process of transferring information from the journal to the ledger is called - Footing - Journalizing - Posting - Recording

Posting

Journalizing a transaction means: - Calculating the balance in an account - Analyzing the source documents - Copying the information from the journal to the ledger - Recording the information in a journal entry

Recording the information in a journal entry

Which of the following statements about expenses is CORRECT? - Expenses increase stockholders' equity, so an expense account's normal balance is a credit balance. - Expenses decrease stockholders' equity, so an expense account's normal balance is a credit balance. - Expenses increase stockholders' equity, so an expense account's normal balance is a debit balance. - Expenses decrease stockholders' equity, so an expense account's normal balance is a debit balance.

Expenses decrease stockholders' equity, so an expense account's normal balance is a debit balance.

For Accounts payable, the classification of the account and its normal balance are: - Stockholders' equity and a credit balance. - Assets and a debit balance. - Liabilities and a credit balance. - Assets and a credit balance.

Liabilities and a credit balance.

In the T-Account LEDGER, where would you find the ending balance of an account? - On the debit side - On the credit side - On the increase side for that account - On the decrease side for that account.

On the increase side for that account

Which of the following is the correct order of steps to journalize an entry? - Identify each account affected, determine increase or decrease in each account, record the transaction. - Identify each account affected, record the transaction, determine increase or decrease in each account. - Record the transaction, identify each account affected, determine increase or decrease in each account. - Determine increase or decrease in each account, identify each account affected, record the transaction.

Identify each account affected, determine increase or decrease in each account, record the transaction

The normal sequence of information in an accounting system is: - Ledger, journal, source document - Journal source document, ledger - Source document, journal, ledger - Source document, ledger, journal

Source document, journal, ledger

A business buys $600 of supplies on account. How would you record the transaction? - Supplies 600 Cash 600 - Accounts Receivable 600 Supplies 600 - Supplies Expense 600 Cash 600 - Supplies 600 Accounts Payable 600

Supplies 600 Accounts Payable 600