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.
Total assets increase.
C.
No effect.
D.
Total assets decrease.
Question #2
A debit to Salaries Expense will:
A.
Decrease stockholders’ equity.
B.
Increase 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.
Chart.
C.
Account.
D.
Entry.
Question #4
Providing services to customers for cash would be recorded with a:
A.
Credit to Service Revenue.
B.
Debit to Service Expense.
C.
Debit to Accounts Receivable.
D.
Credit to Cash.
Question #5
The process of transferring debit and credit information from the general journal to the general ledger is known as:
A.
Journalizing.
B.
Posting.
C.
Charting.
D.
Processing.
Question #6
A credit is used to decrease which of the following accounts?
A.
Cash.
B.
Common Stock.
C.
Service Revenue.
D.
Salaries Payable.
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.
General ledger.
C.
Chart of accounts.
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.
Processing.
C.
Journalizing.
D.
Charting.
Question #9
Account balances in the general ledger are updated for transactions through the process of:
A.
Posting.
B.
Analyzing.
C.
Balancing.
D.
Journalizing.
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.
General ledger.
B.
Financial statements.
C.
Chart of accounts.
D.
Trial balance.
Question #12
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.
Repay amounts previously borrowed from the bank.
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; increase stockholders’ equity.
B.
Increase assets; decrease liabilities.
C.
Decrease liabilities; increase expenses.
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 dividends to stockholders.
C.
Providing services to customers on account.
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.
Analyze the impact of the transaction on the accounting equation.
B.
Use source documents to determine accounts affected by the transaction.
C.
Prepare a trial balance.
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.
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 #19
Which of the following accounts normally has a debit balance?
A.
Service Revenue.
B.
Accounts Payable.
C.
Common Stock.
D.
E.
Supplies.
Question #20
Which of the following transactions decreases stockholders’ equity?
A.
Pay salaries for the current period.
B.
Repay amounts previously borrowed from the bank.
C.
D.
Purchase office supplies on account.
E.
Purchase supplies on account.
Question #21
Which of the following accounts normally has a debit balance?
A.
Service Revenue.
B.
Accounts Payable.
C.
Supplies.
D.
Common Stock.
Question #22
Which of the following transactions decreases total assets?
A.
Pay dividends to stockholders.
B.
Receive a utility bill but do not pay it.
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 on account.
B.
Paying advertising expense for the current month.
C.
Repaying amount borrowed from the bank.
D.
Providing services to customers for cash.
Question #25
Which of the following does not represent an external business transaction?
A.
Paying employees’ salaries.
B.
Providing services to customers.
C.
Expiration of an insurance policy over time.
D.
Purchasing office supplies.
Question #26
A credit to Cash will:
A.
Increase assets.
B.
Decrease assets.
C.
Decrease liabilities.
D.
Decrease stockholders’ equity.
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.
Analyze the impact of the transaction on the accounting equation.
C.
Use source documents to determine accounts affected by the transaction.
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.
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.
Chart of accounts.
C.
Trial balance.
D.
Financial statements.
Question #30
Which of the following transactions increases total assets?
A.
Pay dividends to current stockholders.
B.
Provide services to customers on account.
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.
Pay for rent in the current period.
B.
Purchase office supplies on account.
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 maintenance expenses for the current month.
B.
Repay amounts previously borrowed from the bank.
C.
Providing services to customers on account.
D.
Paying dividends to stockholders.
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 decrease.
D.
Total assets increase.
Question #35
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 #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.
Transaction.
B.
Chart of accounts.
C.
Financial statement.
D.
Journal.
Question #38
Transactions are recorded using debits and credits in a(n):
A.
Chart of accounts.
B.
Annual report.
C.
Journal.
D.
Financial statement.
Question #39
Which of the following transactions increases total liabilities?
A.
Purchase office supplies on account.
B.
Pay for rent in the current period.
C.
Pay dividends to stockholders.
D.
Purchase equipment with cash.
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 trial balance.
B.
The general journal.
C.
The chart of accounts.
D.
The general ledger.
Question #42
A credit to Cash will:
A.
Decrease stockholders’ equity.
B.
Decrease assets.
C.
Increase assets.
D.
Decrease liabilities.
Question #43
Which of the following is possible for a particular business transaction?
A.
Decrease assets; increase stockholders’ equity.
B.
Increase assets; decrease liabilities.
C.
Decrease liabilities; increase expenses
D.
Decrease assets; decrease liabilities.
Question #44
Which of the following does not represent an external business transaction?
A.
Providing services to customers.
B.
Purchasing office supplies.
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.
Debit to Supplies Payable.
B.
Credit to Supplies Expense.
C.
Debit to Cash.
D.
Debit to Supplies.
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.
Supplies.
B.
Accounts Payable.
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 and total stockholders’ equity.
B.
Increase total assets.
C.
Increase total liabilities.
D.
Increase total stockholders’ equity.
Question #49
A debit to Salaries Expense will:
A.
Increase assets.
B.
Increase stockholders’ equity.
C.
Decrease stockholders’ equity.
D.
Decrease liabilities.
Question #50
Which of the following shows a chronological record of all transactions?
A.
The general journal.
B.
The general ledger.
C.
The trial balance.
D.
The chart of accounts.
Question #51
Which of the following accounts normally has a credit balance?
A.
Accounts Receivable.
B.
Dividends.
C.
Service Revenue.
D.
Cash.
Question #52
Transactions are recorded using debits and credits in a(n):
A.
Journal.
B.
Chart of accounts.
C.
Annual report.
D.
Financial statement.
Question #53
Which of the following transactions decreases total assets?
A.
Purchase supplies on account.
B.
Receive a utility bill but do not pay it.
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.
Pay dividends to current stockholders.
B.
Provide services to customers on account.
C.
Purchase supplies for cash.
D.
Collect cash from customer for services provided on account last month.
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.
Service Revenue.
B.
Salaries Payable.
C.
Common Stock.
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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