recording business transactions 457786

1. Suppose Roger has receivables of $63,000, furniture totaling $198,000, and cash of $45,000. The business has a $108,000 note payable and owes $84,000 on account. How much is Roger’s owner’s equity?

Answer:

a) $114,000

b) $192,000

c) $24,000

d) $306,000

2. GB Copies record a cash collection on account by debiting Cash and crediting Accounts payable. What will the trial balance show for this error?

Answer:

a) Too much liabilities

b) Too much for expenses

c) The trial balance will not balance

d) Too much for cash

3. Match the accounting terms on the left with the corresponding definitions on the right.

Answer:

a) Equity a) An asset

b) Debit b) Side of an account where increases are recorded

c) Expenses c) Left side of an account

d) Net Income d) Coping data from the journal to the ledger

e) Ledger e) Using up assets in the course of operating a business

f) Posting f) Always a liability

g) Normal balance g) Revenue expenses

h) Payable h) Book of accounts

i) Journal i) Asset Liabilities

j) Receivable

4. Which account types have a normal debit balance?

Answer:

a) Assets, expenses and withdraws

b) Assets, liabilities and revenues

c) Expense, assets and capital

d) Withdrawals, liabilities and capital

%. You paid $500 for supplies and purchased additional supplies on account for $700. Later you paid$400 of the accounts payable. What is the balance in your supplies account?

Answer:

a) $1,600

b) $1,200

c) $500

d) $800

6. The left side of an account is used to record

Answer

a.) Increases

b) Debit

c) Credit

d) $800

7. Which sequence correctly summaries the accounting process?

Answer:

a) Post to the accounts, journalize transactions, prepare a trial balance,

b) Journalize transactions, post to the accounts, prepare a trial balance

c) Prepare a trial balance, journalize transactions, post to the accounts

d) Journalize transactions, prepare a trail balance, post to the accounts

8. Rita is describing the accounting process for a friend who is a who is a philosophy major. Rita states, “The basic summary device in accounting is the __________ The left side is called the _______ and the right is called __________ .We record transactions first in a _________The we post(copy the data) to the .It is help to the list all the accounts with their balances on a _________

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