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.
No effect.
C.
Total liabilities increase.
D.
Total assets decrease.
Question #2
A debit to Salaries Expense will:
A.
Decrease stockholders’ equity.
B.
Decrease liabilities.
C.
Increase 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.
Chart.
B.
Entry.
C.
Schedule.
D.
Account.
Question #4
Providing services to customers for cash would be recorded with a:
A.
Debit to Accounts Receivable.
B.
Credit to Cash.
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.
Processing.
B.
Journalizing.
C.
Posting.
D.
Charting.
Question #6
A credit is used to decrease which of the following accounts?
A.
Common Stock.
B.
Salaries Payable.
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.
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.
Journalizing.
B.
Processing.
C.
Posting.
D.
Charting.
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.
Chart of accounts.
C.
Transaction.
D.
Financial statement.
Question #11
After transactions are recorded in the journal, they are posted to the:
A.
Chart of accounts.
B.
General ledger.
C.
Trial balance.
D.
Financial statements.
Question #12
Which of the following transactions decreases stockholders’ equity?
A.
Purchase office supplies on account.
B.
Repay amounts previously borrowed from the bank.
C.
Purchase supplies on account.
D.
Pay salaries for the current period.
Question #13
Providing services to customers for cash would be recorded with a:
A.
Credit to Service Revenue.
B.
Debit to Accounts Receivable.
C.
Debit to Service Expense.
D.
Credit to Cash.
Question #14
Which of the following transactions causes a decrease in stockholders’ equity?
A.
Providing services to customers for cash.
B.
Providing services to customers on account.
C.
Repaying amount borrowed from the bank.
D.
Paying advertising expense for the current month.
Question #15
Which of the following is possible for a particular business transaction?
A.
Decrease assets; decrease liabilities.
B.
Decrease liabilities; increase expenses.
C.
Decrease assets; increase stockholders’ equity.
D.
Increase assets; decrease liabilities.
Question #16
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.
Paying dividends to stockholders.
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.
Post the transaction to the T-account in the general ledger.
B.
Use source documents to determine accounts affected by the transaction.
C.
Analyze the impact of the transaction on the accounting equation.
D.
Prepare a trial balance.
Question #18
Which of the following is true about a trial balance?
A.
Total debit amounts should always equal total credit amounts.
B.
Only income statement accounts are shown.
C.
Only balance sheet accounts are shown.
D.
The trial balance shows the change in all account balances over the accounting period.
Question #19
Which of the following accounts normally has a debit balance?
A.
Accounts Payable.
B.
C.
Service Revenue.
D.
Supplies.
E.
Common Stock.
Question #20
Which of the following transactions decreases stockholders’ equity?
A.
B.
Pay salaries for the current period.
C.
Purchase supplies on account.
D.
Purchase office supplies on account.
E.
Repay amounts previously borrowed from the bank.
Question #21
Which of the following accounts normally has a debit balance?
A.
Common Stock.
B.
Service Revenue.
C.
Accounts Payable.
D.
Supplies.
Question #22
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 #23
Providing services to customers for cash would have what effect on the accounting equation?
A.
Increase total liabilities.
B.
Increase total stockholders’ equity.
C.
Increase total assets and total stockholders’ equity.
D.
Increase total assets.
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.
Providing services to customers on account.
D.
Paying advertising expense for the current month.
Question #25
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 #26
A credit to Cash will:
A.
Decrease assets.
B.
Decrease stockholders’ equity.
C.
Decrease liabilities.
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.
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.
Total debit amounts should always equal total credit amounts.
B.
The trial balance shows the change in all account balances over the accounting period.
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.
General ledger.
B.
Trial balance.
C.
Chart of accounts.
D.
Financial statements.
Question #30
Which of the following transactions increases total assets?
A.
Purchase supplies for cash.
B.
Provide services to customers on account.
C.
Collect cash from customer for services provided on account last month.
D.
Pay dividends to current stockholders.
Question #31
Which of the following transactions increases total liabilities?
A.
Pay dividends to stockholders.
B.
Purchase office supplies on account.
C.
Purchase equipment with cash.
D.
Pay for rent in the current period.
Question #32
Which of the following transactions causes a decrease in total liabilities?
A.
Paying maintenance expenses for the current month.
B.
Paying dividends to stockholders.
C.
Providing services to customers on account.
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.
General ledger.
D.
Chart of accounts.
Question #34
Purchasing land with cash would have what effect on the accounting equation?
A.
Total assets increase.
B.
No effect.
C.
Total liabilities 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.
Debit to Dividends.
D.
Credit to Dividends.
Question #36
A debit is used to decrease which of the following accounts?
A.
Supplies.
B.
Accounts Payable.
C.
Salaries Expense.
D.
Dividends.
Question #37
A.
Chart of accounts.
B.
Transaction.
C.
Journal.
D.
Financial statement.
Question #38
Transactions are recorded using debits and credits in a(n):
A.
Journal.
B.
Annual report.
C.
Chart of accounts.
D.
Financial statement.
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.
Journalizing.
B.
Analyzing.
C.
Balancing.
D.
Posting.
Question #41
Which of the following shows a chronological record of all transactions?
A.
The general journal.
B.
The trial balance.
C.
The general ledger.
D.
The chart of accounts.
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 liabilities; increase expenses
B.
Decrease assets; decrease liabilities.
C.
Decrease assets; increase stockholders’ equity.
D.
Increase assets; decrease liabilities.
Question #44
Which of the following does not represent an external business transaction?
A.
Paying employees’ salaries.
B.
Providing services to customers.
C.
Purchasing office supplies.
D.
Expiration of an insurance policy over time.
Question #45
The purchase of supplies on account would be recorded with a:
A.
Debit to Cash.
B.
Debit to Supplies Payable.
C.
Credit to Supplies Expense.
D.
Debit to Supplies.
Question #46
Which of the following accounts normally has a credit balance?
A.
Dividends.
B.
Accounts Receivable.
C.
Service Revenue.
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 stockholders’ equity.
B.
Increase total assets and total stockholders’ equity.
C.
Increase total assets.
D.
Increase total liabilities.
Question #49
A debit to Salaries Expense will:
A.
Increase assets.
B.
Decrease liabilities.
C.
Increase stockholders’ equity.
D.
Decrease stockholders’ equity.
Question #50
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 #51
Which of the following accounts normally has a credit balance?
A.
Cash.
B.
Dividends.
C.
Accounts Receivable.
D.
Service Revenue.
Question #52
Transactions are recorded using debits and credits in a(n):
A.
Annual report.
B.
Financial statement.
C.
Journal.
D.
Chart of accounts.
Question #53
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 #54
Which of the following transactions increases total assets?
A.
Collect cash from customer for services provided on account last month.
B.
Provide services to customers on account.
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 Salaries Expense.
B.
Credit to Dividends.
C.
Credit to Common Stock.
D.
Debit to Dividends.
Question #56
A credit is used to decrease which of the following accounts?
A.
Salaries Payable.
B.
Common Stock.
C.
Cash.
D.
Service Revenue.
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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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