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Multiple Choice Questions



This activity contains 15 questions.

Question 1.
After posting is complete, a summary of all ledger ending account balances can be found by consulting the ____________________.

 
End of Question 1


Question 2.
Using the following information, compute total assets: Notes Receivable $3,000, Accounts Payable $4,000, Equipment $20,000, and Sales Revenue $50,000.

 
End of Question 2


Question 3.
Using the following information, compute total liabilities: Notes Receivable $30,000, Accounts Payable $20,000, Wages Payable $8,000, and Rent Expense $40,000.


Open Hint for Question 3 in a new window.
 
End of Question 3


Question 4.
Which of the following account types have a normal debit balance?

 
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Question 5.
Which of the following accounts have a normal credit balance?

 
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Question 6.
A purchase of office supplies results in recording a decrease in cash and which of the following?

 
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Question 7.
The payment of rent expense for this month results in recording a decrease in cash and which of the following?

 
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Question 8.
ABC Services provides accounting services for a client and collects $1,000 in cash. Providing this service results in ABC Services recording an increase in cash and which of the following?

 
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Question 9.
A trial balance is a list of all the accounts and their ending balances. Place the following accounts in the order they would appear on a properly prepared trial balance: Sales Revenue, Accounts Payable, Land, and Rent Expense.

 
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Question 10.

A trial balance is a summary of all accounts and their ending balances listed either as a debit or a credit. The trial balance accounts listed below all have normal balances. Using the following information compute the total for the debit column: Cash $1,000, Sales Revenue $10,000, Wage Expense $3,000, and Notes Payable $2,000.
 
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Question 11.

Child Care Services has a beginning cash balance of $10,000. During the accounting period, $20,000 of child care services were provided. $15,000 cash was received from parents and the remaining $5,000 owed was put in accounts receivable. Child Care Services paid bills totaling $8,000. Compute the balance in the cash account at the end of the accounting period.
 
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Question 12.
Bookkeeping Services has a beginning credit balance in Accounts Payable of $200,000. During the accounting period, $50,000 of accounts payable is paid off with cash. Compute the balance in Accounts Payable at the end of the accounting period.

 
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Question 13.
The expanded accounting equation refers to

 
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Question 14.
The correct journal entry to record a firm borrowing $50,000 from a bank and signing a notes payable in the name of the business includes

 
End of Question 14


Question 15.
The correct journal entry to record a firm receiving $500 cash in payment on account includes

 
End of Question 15





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