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