FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Recording Business Transactions

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 51

True/False

Review LaterAdd Note

Review Later

Prepaid Rent is a liability account.

A) True
B) False

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

A business performs services for a customer for $26,000 on account.Which of the following accounts is debited?

A) Cash
B) Accounts Receivable
C) Service Revenue
D) Accounts Payable

E) A) and B)
F) B) and C)

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

On October 31,a business pays $1,500 cash for television ads that appeared during October.Which of the following accounts is debited?

"All debits are increases and all credits are decreases." Is this a correct statement? Explain your answer.

The process of transferring data from the ledger to the journal is called posting.

For Office Supplies,the category of account and its normal balance is ________.

When a business makes a cash payment,the Cash account is debited.

The trial balance is also known as the balance sheet.

The higher the debt ratio,the lower the risk of default.

A business repays the amount borrowed on a note with cash.Which of the following accounts is debited?

An accounting entry that is characterized by having multiple debits and/or multiple credits is called a ________ entry.

A business makes a cash payment of $12,000 to a creditor.Which of the following accounts is credited?

Saturn,Inc.paid the rent for the current month in cash.Which of the following accounts will be used to record the transaction?

Which is a true statement regarding the accounting equation?

A business purchases equipment by paying $6,276 in cash and issuing a note payable of $19,177.Which of the following occurs?

Each category of the accounting equation contains accounts.

Which one of the following account groups normally has a debit balance?

A T-account is a summary device with credits posted on the left side of the vertical line.

Mason's Restaurant and Catering had the following transactions during the month of May. The business uses the following accounts: Cash;Accounts Receivable;Office Supplies;Delivery Van;Accounts Payable;Utilities Payable;Unearned Revenue;Notes Payable;Common Stock;Dividends;Service Revenue;Salaries Expense;Equipment Rent Expense;Restaurant Rent Expense;Utilities Expense;Catering Expense;and Advertising Expense. Required: Journalize each transaction.Explanations are not needed.

Revenues and stockholders' contributions in the business increase equity.