60.1K

Verified Solution

Link Copied!

1. Multiple Choice.

1. A group of related accounts that comprise a complete unit iscalled

1. Journal
2. Liability
3. Ledger
4. Transaction

2. A chart of accounts is

1. The same as a balance sheet
2. usually a listing of accounts in alphabetical order
3. usually a listing of accounts in financial statement order
4. used in place of a ledger

3. The Debit side of an account

1. Depends on whether the account is an asset, liability, orowner’s equity
2. Can be either side of the account depending on how theaccountant set up the system
3. Is the right side of the account
4. Is the left side of the account

4. Which of the following describes the classification and normalbalance of the fees earned account?

1. Asset, credit
2. Liability, credit
3. Owner’s equity, debit
4. Revenue, credit

5. The classification and normal balance of the accounts payableaccount is

1. An asset with a credit balance
2. a liability with a credit balance
3. owner’s equity with a credit balance
4. revenue with a credit balance

6. In which of the following types of accounts are decreasesrecorded by debits

1. Assets
2. Revenues
3. Expenses
4. Drawing

7. A debit balance in which of the following accounts wouldindicate a likely error?

1. Salaries Expense
2. Notes Payable
3. N. McGee, Drawing
4. Supplies

8. Which of the following entries records the investment of cashby Tito , owner of a proprietorship?

1. Debit Tito, Capital; credit Accounts Receivable
2. Debit cash; credit Tito, Capital
3. Debit Tito, Drawing; credit cash
4. Debit cash; credit Tito, Drawing

9. Office supplies were sold by J’s Appliance Repair at cost toanother repair shop , with cash received. Which of the followingentries for J’s Appliance Repair records this transaction?

1. Office Supplies, debit; Cash, credit
2. Office Supplies, debit; Accounts Payable, credit
3. Cash, debit; Office Supplies, credit
4. Accounts Payable, debit; Office Supplies, credit

10. The process of initially recording a business transaction iscalled

1. Trial balancing
2. Posting
3. Journalizing
4. Balancing

11. Which of the following entries records the acquisition ofoffice supplies on account?

1. Office Supplies, debit; Cash, credit
2. Cash, debit; Office Supplies, credit
3. Office Supplies, debit; Accounts Payable, credit
4. Accounts Receivable, debit; Office Supplies, credit

12. Which of the following entries records the acquisition ofequipment on account?

1. Equipment, debit; Accounts Payable, credit
2. Equipment, debit; Cash, credit
3. Accounts Payable, debit; Equipment, credit
4. Accounts Payable, debit; Notes Payable, credit