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