Chapter 2 Accounting Quiz
Which of the following statements is true of a trial balance?
A trial balance presents data in debit and credit format
A business makes a cash payment of $12,000 to a supplier for supplies purchased two weeks earlier. Which of the following account is debited?
Accounts Payable
Adams Inc recorded the following journal entry on March 2nd. Cash 6,500 Unearned Revenue 6,500 From the journal entry above, identify the transaction on March 2nd
Adams received $6,500 for services to be performed at a later period
The Common Stock account for November of Brownstone Inc. had the following transactions: an issuance of Common Stock of $20,000 on November 1 and an issuance of Common Stock of $20,000 on November 15. Assuming a beginning balance in Common Stock of $10,000, what is the balance in Common Stock as of November 15?
Add all common stocks
Accounts receivable account of Brownstone Inc has the following postings.
Add debits and subtract credits
At the end of a month, a business shows the following balances in its ledger.
Add either side up
The dividends account of Brownstone Inc has the following postings
Add the debits
Which of the following decreases with credit
Cash
Given the following journal entry, indicate how it would be posted: Land 10,000 Cash 10,000
Cash credit, Land debit
Given the following journal entry, indicate how it would be posted:
Cash debit, service revenue credit
A business makes a payment of $1,400 on a note payable. Which of the following journal entries would be recorded?
Cash is credited, and Notes Payable is debited for $1,400.
Which of the following accounts increases with credit
Common Stock
A cash payment of $5,000 was made for dividends. Which of the following accounts is debited
Dividends
Distribution of cash or other assets to stockholders is called
Dividends
For revenues, the category of account and its normal balance is
Equity and credit
Which of the following statements is true of expenses
Expenses decrease equity, so an expense account's normal balance is debit
Transactions are first recorded in a
Journal
Which of the following is a record holding all the accounts, changes in accounts, and their balances
Ledger
The Salaries Payable account is a
Liability account with a normal credit balance
Which of the following accounts decreases with debit
Notes Payable
Which of the following journal entries would be recorded if a business purchased $800 of office supplies on account?
Office Supplies 800 Accounts Payable 800
Which of the following is an asset
Prepaid Expense
Which of the following accounts is NOT a liability
Prepaid Insurance
Which of the following increases with debit
Rent Expense
A business performs services for a customer for $26,000 on account. Which of the following accounts is credited?
Service Revenue
Which of the following accounts is NOT an asset
Service Revenue
Posting a transaction means
Transferring data from the journal to the ledger
A liability created when a business receives cash from customers in advance of providing services or delivering goods is called...
Unearned Revenue
Which of the following is an asset account
accounts receivable
The Service Revenue account of Brownstone has the following postings
add the credits
