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