Accounting 101 - Financial Accounting » Spring 2021 » Chapter 2 Quiz
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Question #1
Purchasing land with cash would have what effect on the accounting equation?
A.
Total assets increase.
B.
Total assets decrease.
C.
Total liabilities increase.
D.
No effect.
Question #2
A debit to Salaries Expense will:
A.
Increase stockholders’ equity.
B.
Decrease stockholders’ equity.
C.
Increase assets.
D.
Decrease liabilities.
Question #3
All transactions related to a particular item over a period of time are summarized in a(n):
A.
Schedule.
B.
Account.
C.
Chart.
D.
Entry.
Question #4
Providing services to customers for cash would be recorded with a:
A.
Credit to Cash.
B.
Debit to Accounts Receivable.
C.
Credit to Service Revenue.
D.
Debit to Service Expense.
Question #5
The process of transferring debit and credit information from the general journal to the general ledger is known as:
A.
Charting.
B.
Processing.
C.
Journalizing.
D.
Posting.
Question #6
A credit is used to decrease which of the following accounts?
A.
Common Stock.
B.
Cash.
C.
Salaries Payable.
D.
Service Revenue.
Question #7
Which of the following correctly describes a list of accounts and their balances, showing that total debits equal total credits?
A.
Journal.
B.
Trial balance.
C.
General ledger.
D.
Chart of accounts.
Question #8
The process of transferring debit and credit information from the general journal to the general ledger is known as:
A.
Processing.
B.
Charting.
C.
Posting.
D.
Journalizing.
Question #9
Account balances in the general ledger are updated for transactions through the process of:
A.
Journalizing.
B.
Posting.
C.
Analyzing.
D.
Balancing.
Question #10
A list of all account names used to record transactions of a company is referred to as a:
A.
Transaction.
B.
Chart of accounts.
C.
Financial statement.
D.
Journal.
Question #11
After transactions are recorded in the journal, they are posted to the:
A.
Chart of accounts.
B.
Trial balance.
C.
Financial statements.
D.
General ledger.
Question #12
Which of the following transactions decreases stockholders’ equity?
A.
Pay salaries for the current period.
B.
Repay amounts previously borrowed from the bank.
C.
Purchase office supplies on account.
D.
Purchase supplies on account.
Question #13
Providing services to customers for cash would be recorded with a:
A.
Credit to Cash.
B.
Debit to Service Expense.
C.
Credit to Service Revenue.
D.
Debit to Accounts Receivable.
Question #14
Which of the following transactions causes a decrease in stockholders’ equity?
A.
Providing services to customers for cash.
B.
Paying advertising expense for the current month.
C.
Repaying amount borrowed from the bank.
D.
Providing services to customers on account.
Question #15
Which of the following is possible for a particular business transaction?
A.
Decrease assets; decrease liabilities.
B.
Decrease assets; increase stockholders’ equity.
C.
Increase assets; decrease liabilities.
D.
Decrease liabilities; increase expenses.
Question #16
Which of the following transactions causes a decrease in total liabilities?
A.
Repay amounts previously borrowed from the bank.
B.
Paying dividends to stockholders.
C.
Paying maintenance expenses for the current month.
D.
Providing services to customers on account.
Question #17
Which step in the process of measuring external transactions involves assessing the equality of total debits and total credits?
A.
Use source documents to determine accounts affected by the transaction.
B.
Prepare a trial balance.
C.
Post the transaction to the T-account in the general ledger.
D.
Analyze the impact of the transaction on the accounting equation.
Question #18
Which of the following is true about a trial balance?
A.
Only income statement accounts are shown.
B.
The trial balance shows the change in all account balances over the accounting period.
C.
Only balance sheet accounts are shown.
D.
Total debit amounts should always equal total credit amounts.
Question #19
Which of the following accounts normally has a debit balance?
A.
Supplies.
B.
Service Revenue.
C.
D.
Accounts Payable.
E.
Common Stock.
Question #20
Which of the following transactions decreases stockholders’ equity?
A.
Pay salaries for the current period.
B.
Purchase office supplies on account.
C.
Purchase supplies on account.
D.
E.
Repay amounts previously borrowed from the bank.
Question #21
Which of the following accounts normally has a debit balance?
A.
Accounts Payable.
B.
Common Stock.
C.
Service Revenue.
D.
Supplies.
Question #22
Which of the following transactions decreases total assets?
A.
Receive a utility bill but do not pay it.
B.
Pay dividends to stockholders.
C.
Receive cash from customers for sales in the current period.
D.
Purchase supplies on account.
Question #23
Providing services to customers for cash would have what effect on the accounting equation?
A.
Increase total liabilities.
B.
Increase total assets and total stockholders’ equity.
C.
Increase total assets.
D.
Increase total stockholders’ equity.
Question #24
Which of the following transactions causes a decrease in stockholders’ equity?
A.
Providing services to customers for cash.
B.
Repaying amount borrowed from the bank.
C.
Paying advertising expense for the current month.
D.
Providing services to customers on account.
Question #25
Which of the following does not represent an external business transaction?
A.
Expiration of an insurance policy over time.
B.
Purchasing office supplies.
C.
Paying employees’ salaries.
D.
Providing services to customers.
Question #26
A credit to Cash will:
A.
Decrease stockholders’ equity.
B.
Decrease liabilities.
C.
Decrease assets.
D.
Increase assets.
Question #27
Which step in the process of measuring external transactions involves assessing the equality of total debits and total credits?
A.
Prepare a trial balance.
B.
Post the transaction to the T-account in the general ledger.
C.
Use source documents to determine accounts affected by the transaction.
D.
Analyze the impact of the transaction on the accounting equation.
Question #28
Which of the following is true about a trial balance?
A.
Total debit amounts should always equal total credit amounts.
B.
Only balance sheet accounts are shown.
C.
Only income statement accounts are shown.
D.
The trial balance shows the change in all account balances over the accounting period.
Question #29
After transactions are recorded in the journal, they are posted to the:
A.
General ledger.
B.
Trial balance.
C.
Financial statements.
D.
Chart of accounts.
Question #30
Which of the following transactions increases total assets?
A.
Pay dividends to current stockholders.
B.
Collect cash from customer for services provided on account last month.
C.
Purchase supplies for cash.
D.
Provide services to customers on account.
Question #31
Which of the following transactions increases total liabilities?
A.
Purchase office supplies on account.
B.
Purchase equipment with cash.
C.
Pay dividends to stockholders.
D.
Pay for rent in the current period.
Question #32
Which of the following transactions causes a decrease in total liabilities?
A.
Providing services to customers on account.
B.
Repay amounts previously borrowed from the bank.
C.
Paying dividends to stockholders.
D.
Paying maintenance expenses for the current month.
Question #33
Which of the following correctly describes a list of accounts and their balances, showing that total debits equal total credits?
A.
Journal.
B.
General ledger.
C.
Chart of accounts.
D.
Trial balance.
Question #34
Purchasing land with cash would have what effect on the accounting equation?
A.
Total assets increase.
B.
Total assets decrease.
C.
Total liabilities increase.
D.
No effect.
Question #35
Paying dividends to stockholders would be recorded with a:
A.
Debit to Dividends.
B.
Debit to Salaries Expense.
C.
Credit to Dividends.
D.
Credit to Common Stock.
Question #36
A debit is used to decrease which of the following accounts?
A.
Accounts Payable.
B.
Supplies.
C.
Dividends.
D.
Salaries Expense.
Question #37
A list of all account names used to record transactions of a company is referred to as a:
A.
Journal.
B.
Chart of accounts.
C.
Financial statement.
D.
Transaction.
Question #38
Transactions are recorded using debits and credits in a(n):
A.
Chart of accounts.
B.
Journal.
C.
Annual report.
D.
Financial statement.
Question #39
Which of the following transactions increases total liabilities?
A.
Pay dividends to stockholders.
B.
Purchase office supplies on account.
C.
Pay for rent in the current period.
D.
Purchase equipment with cash.
Question #40
Account balances in the general ledger are updated for transactions through the process of:
A.
Balancing.
B.
Journalizing.
C.
Analyzing.
D.
Posting.
Question #41
Which of the following shows a chronological record of all transactions?
A.
The general ledger.
B.
The general journal.
C.
The chart of accounts.
D.
The trial balance.
Question #42
A credit to Cash will:
A.
Increase assets.
B.
Decrease assets.
C.
Decrease liabilities.
D.
Decrease stockholders’ equity.
Question #43
Which of the following is possible for a particular business transaction?
A.
Decrease liabilities; increase expenses
B.
Increase assets; decrease liabilities.
C.
Decrease assets; decrease liabilities.
D.
Decrease assets; increase stockholders’ equity.
Question #44
Which of the following does not represent an external business transaction?
A.
Paying employees’ salaries.
B.
Purchasing office supplies.
C.
Expiration of an insurance policy over time.
D.
Providing services to customers.
Question #45
The purchase of supplies on account would be recorded with a:
A.
Credit to Supplies Expense.
B.
Debit to Supplies.
C.
Debit to Supplies Payable.
D.
Debit to Cash.
Question #46
Which of the following accounts normally has a credit balance?
A.
Dividends.
B.
Cash.
C.
Service Revenue.
D.
Accounts Receivable.
Question #47
A debit is used to decrease which of the following accounts?
A.
Accounts Payable.
B.
Dividends.
C.
Supplies.
D.
Salaries Expense.
Question #48
Providing services to customers for cash would have what effect on the accounting equation?
A.
Increase total stockholders’ equity.
B.
Increase total liabilities.
C.
Increase total assets and total stockholders’ equity.
D.
Increase total assets.
Question #49
A debit to Salaries Expense will:
A.
Decrease stockholders’ equity.
B.
Decrease liabilities.
C.
Increase stockholders’ equity.
D.
Increase assets.
Question #50
Which of the following shows a chronological record of all transactions?
A.
The chart of accounts.
B.
The general journal.
C.
The general ledger.
D.
The trial balance.
Question #51
Which of the following accounts normally has a credit balance?
A.
Dividends.
B.
Service Revenue.
C.
Cash.
D.
Accounts Receivable.
Question #52
Transactions are recorded using debits and credits in a(n):
A.
Journal.
B.
Financial statement.
C.
Chart of accounts.
D.
Annual report.
Question #53
Which of the following transactions decreases total assets?
A.
Receive a utility bill but do not pay it.
B.
Purchase supplies on account.
C.
Pay dividends to stockholders.
D.
Receive cash from customers for sales in the current period.
Question #54
Which of the following transactions increases total assets?
A.
Purchase supplies for cash.
B.
Collect cash from customer for services provided on account last month.
C.
Provide services to customers on account.
D.
Pay dividends to current stockholders.
Question #55
Paying dividends to stockholders would be recorded with a:
A.
Credit to Dividends.
B.
Debit to Dividends.
C.
Credit to Common Stock.
D.
Debit to Salaries Expense.
Question #56
A credit is used to decrease which of the following accounts?
A.
Service Revenue.
B.
Cash.
C.
Salaries Payable.
D.
Common Stock.
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Get Answers to this exam for $6 USD.
Get Answers to all exams in [ Accounting 101 - Financial Accounting ] course for $25 USD.
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