Scribd
Upload
690 views4 pages

Examination Question and Answers, Set B (Multiple Choice), Chapter 2 - Analyzing Transactions

This document contains 20 multiple choice questions about classifying and recording common business transactions. It tests understanding of the normal balances and classifications of common accounts like assets, liabilities, revenues, expenses, and equity. It also tests the ability to identify the correct double-entry bookkeeping entries to record common transactions like paying expenses, receiving cash from customers, and withdrawing cash from the business.

Uploaded by

John Carlos Doringo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
690 views4 pages

Examination Question and Answers, Set B (Multiple Choice), Chapter 2 - Analyzing Transactions

This document contains 20 multiple choice questions about classifying and recording common business transactions. It tests understanding of the normal balances and classifications of common accounts like assets, liabilities, revenues, expenses, and equity. It also tests the ability to identify the correct double-entry bookkeeping entries to record common transactions like paying expenses, receiving cash from customers, and withdrawing cash from the business.

Uploaded by

John Carlos Doringo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 4

Chapter 2—Analyzing Transactions [Multiple Choice]

1.Which of the following describes the classific ation and normal balance of the fees earned
account?
a. Asset, credit
b. Liability, credit
c. Owner's equity, debit
d. Revenue, credit
ANS: D DIF: 1 OBJ: 03

2. The classification and normal balance of the accounts payable account is :


a. an asset with a credit balance
b. a liability with a credit balance
c. owner's equity with a credit balance
d. revenue with a credit balance
ANS: B DIF: 1 OBJ: 03

3. The classification and normal balance of the drawing account is:


a. an expense with a credit balance
b. an expense with a debit balance
c. a liability with a credit balance
d. owner's equity with a debit balance
ANS: D DIF: 1 OBJ: 03

4. The classification and normal balance of the supplies account is a(n):


a. asset with a credit balance
b. asset with a debit balance
c. liability with a credit balance
d. liability with a debit balance
ANS: B DIF: 1 OBJ: 03

5. The classification and normal balance of the equipment account is:


a. an asset with a credit balance
b. a liability with a credit balance
c. expense with a debit balance
d. an asset with a debit balance
ANS: D DIF: 1 OBJ: 03

6. The classification and normal balance of the supplies expense account is a(n):
a. asset with a debit balance
b. asset with a credit balance
c. expense with a debit balance
d. liability with a credit balance
ANS: C DIF: 1 OBJ: 03
7. In which of the following types of accounts are increases recorded by debits?
a. Assets, Liabilities
b. Drawing, Liabilities
c. Expenses, Liabilities
d. Assets, Expenses
ANS: D DIF: 1 OBJ: 03

8. In which of the following types of accounts are increases recor ded by credits?
a. Revenues, Liabilities
b. Drawing, Assets
c. Liabilities, Drawing
d. Expenses, Liabilities
ANS: A DIF: 1 OBJ: 03

9. In which of the following types of accounts are decreases recorded by debits?


a. Assets
b. Revenues
c. Expenses
d. Drawing
ANS: B DIF: 1 OBJ: 03

10. In which of the following types of accounts are decreases recorded by credits?
a. Liabilities
b. Owner's Capital
c. Drawing
d. Revenues
ANS: C DIF: 1 OBJ: 03

11. Which of the following entries records the withdrawal of cash by Joe, owner of a
proprietorship, for personal use?
a. debit Joe, Capital; credit Cash
b. debit Joe, Drawing; credit Cash
c. debit Salaries Expense; credit Cash
d. debit Salaries Expense; credit Salaries Payable
ANS: B DIF: 5 OBJ: 03

12. A credit balance in which of the following accounts would indicate a likely error?
a. Fees Earned
b. Salary Expense
c. P. Pelavin, Capital
d. Accounts Payable
ANS: B DIF: 5 OBJ: 03

13. A debit balance in which of the following accounts would indicate a likely error?
a. Salaries Expense
b. Notes Payable
c. N. McGee, Drawing
d. Supplies
ANS: B DIF: 5 OBJ: 03

14. Which of the following entries records the payment of an account payable?
a. debit Cash; credit Accounts Payable
b. debit Accounts Receivable; credit Cash
c. debit Cash; credit Expense
d. debit Accounts Payable; credit Cash
ANS: D DIF: 5 OBJ: 04

15. Which of the following entries records the investment of cash by Funaro, owner of a
proprietorship?
a. debit Funaro, Capital; credit Accounts Receivable
b. debit Cash; credit Funaro, Capital
c. debit Funaro, Drawing; credit Cash
d. debit Cash; credit Funaro, Drawing
ANS: B DIF: 5 OBJ: 04

16. Which of the following entries records the receipt of a utilities bill from the water company?
a. debit Utilities Expense; credit Utilities Payable
b. debit Utilities Payable; credit Accounts Receivable
c. debit Accounts Payable; credit Cash
d. debit Accounts Payable; credit Utilities Payable
ANS: A DIF: 5 OBJ: 04

17. Office supplies were sold by J's Appliance Repair at cost to another repair shop, with cash
received. Which of the following entries for J's Applia nce Repair records this transaction?
a. Office Supplies, debit; Cash, credit
b. Office Supplies, debit; Accounts Payable, credit
c. Cash, debit; Office Supplies, credit
d. Accounts Payable, debit; Office Supplies, credit
ANS: C DIF: 5 OBJ: 04

18. Office supplies purchased by J's Appliance Repair on account were returned. Which of the
following entries for J's Appliance Repair records this transaction?
a. Cash, debit; Office Supplies, credit
b. Office Supplies, debit; Accounts Receivable, credit
c. Accounts Payable, debit; Office Supplies, credit
d. Office Supplies, debit; Accounts Payable, credit
ANS: C DIF: 5 OBJ: 04

19. Cash was paid by J's Appliance Repair to creditors on account. Which of the following entries
for J's records this transaction?
a. Cash, debit; J's, Capital, credit
b. Accounts Payable, debit; Cash, credit
c. Accounts Receivable, debit; Cash, credit
d. Accounts Payable, debit; Account Receivable, credit
ANS: B DIF: 5 OBJ: 04
20. The process of initially recording a business transaction is called:
a. trial balancing
b. posting
c. journalizing
d. balancing
ANS: C DIF: 1 OBJ: 04

You might also like