Accounting Chapter 2 Practice Quiz

All transactions related to a particular item over a period of time are summarized in a(n):

Account

A list of all account names used to record transactions of a company is referred to as a:

Chart of Accounts

Paying dividends to stockholders would be recorded with a:

Debit to Diviends

The purchase of supplies on account would be recorded with a:

Debit to Supplies

A credit to Cash will:

Decrease assets

A debit to Salaries Expense will:

Decrease stockholders' equity.

After transactions are recorded in the journal, they are posted to the:

General Ledger

Providing services to customers for cash would have what effect on the accounting equation?

Increase total stockholders' equity and assets

Transactions are recorded using debits and credits in a(n):

Journal.

Purchasing land with cash would have what effect on the accounting equation?

No Effect

Which of the following transactions decreases total assets?

Pay dividends to stockholders.

Which of the following transactions decreases stockholders' equity?

Pay salaries for the current period.

The process of transferring debit and credit information from the general journal to the general ledger is known as:

Posting

Which of the following transactions increases total assets?

Provide services to customers on account.

Which of the following transactions increases total liabilities?

Purchase office supplies on account.

Which of the following accounts normally has a credit balance?

Service Revenue

Which of the following correctly describes a list of accounts and their balances, showing that debits equal credits?

Trial Balance

Which of the following accounts normally has a debit balance?

Supplies

Which of the following shows a chronological record of all transactions?

The general journal

Providing services to customers for cash would be recorded with a:

Credit to Service Revenue