Question

1) The account title used for recording the payment of rent in advance for an office building is ________.

A) Prepaid Rent

B) Rent Payable

C) Rent Revenue

D) Rent Expense

  

2) Which of the following is an asset account?

A) Wages Payable

B) Notes Payable

C) Unearned Revenue

D) Accounts Receivable

  

3) A customer's promise to pay in the future for services or goods sold is called a(n) ________.

A) Accounts Receivable

B) Accounts Payable

C) Unearned Revenue

D) Notes Payable

  

4) Which of the following is classified as an asset account?

A) Prepaid Insurance

B) Notes Payable

C) Dividends

D) Unearned Revenue

  

5) ________ represents a debt owed for renting a building.

A) Prepaid Rent

B) Rent Payable

C) Rent Revenue

D) Rent Expense

  

6) Which of the following is a liability account?

A) Prepaid Advertising

B) Cash

C) Building

D) Unearned Rent

  

7) Which of the following is a liability account?

A) Accounts Payable

B) Prepaid Expense

C) Salaries Expense

D) Service Revenue

  

8) A liability created when a business receives cash from customers in advance of providing services or delivering goods is called a(n) ________.

A) notes receivable

B) unearned revenue

C) accrued liability

D) service revenue

  

9) Which of the following is a liability account?

A) Service Revenue

B) Building

C) Prepaid Rent

D) Unearned Revenue

  

  

10) Explain the difference between Accounts Receivable and Accounts Payable.

Answer:   

  

  

  

  

  

  

  

  

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

A) Prepaid Rent

B) Rent Payable

C) Rent Revenue

D) Rent Expense

  

12) Amounts earned from delivering goods or services to customers are called ________.

A) notes receivable

B) unearned revenues

C) equity

D) revenues

  

13) Which of the following is provided in a typical chart of accounts?

A) Account balance

B) Account number

C) Dates of transactions

D) Transaction amounts

  

14) A listing of all accounts in numerical order is called a(n) ________.

A) Ledger

B) Journal

C) Income statement

D) Chart of accounts

  

15) Both the chart of accounts and the ledger ________.

A) provide the balance of each account at a specific point in time

B) list the account names and numbers of the business

C) fulfill the task of showing all of the increases and decreases in each account

D) All of the statements are correct.

  

16) Regarding T-accounts, which of the following statements is correct?

A) A T-account is a more detailed form of an account in the journal.

B) The right side of a T-account is a debit for asset accounts and a credit for equity accounts.

C) Debits are posted on the right side of the vertical line.

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

  

17) Which of the following accounts decreases with a debit?

A) Accounts Receivable

B) Notes Payable

C) Cash

D) Rent Expense

  

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

Answer:   

  

  

  

  

19) Which of the following accounts decreases with a credit?

A) Cash

B) Common Stock

C) Accounts Payable

D) Unearned Revenue

  

20) Which of the following accounts increases with a debit?

A) Prepaid Rent

B) Interest Payable

C) Accounts Payable

D) Common Stock

  

21) Which one of the following account groups will decrease with a debit?

A) assets and expenses

B) revenues and expenses

C) liabilities and revenues

D) assets and liabilities

  

22) Which of the following statements is true of expenses?

A) Expenses increase equity, so an expense account's normal balance is a credit balance.

B) Expenses decrease equity, so an expense account's normal balance is a credit balance.

C) Expenses increase equity, so an expense account's normal balance is a debit balance.

D) Expenses decrease equity, so an expense account's normal balance is a debit balance.

  

23) Which one of the following account groups normally has a credit balance?

A) assets and liabilities

B) equity and assets

C) liabilities and revenues

D) assets and expenses

  

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

A) assets and expenses

B) revenues and expenses

C) liabilities and revenues

D) assets and liabilities

  

25) Accounts Receivable is a(n) ________ account and has a normal ________ balance.

A) liability; debit

B) asset; debit

C) liability; credit

D) asset; credit

  

26) Accounts Payable is a(n) ________ account and has a normal ________ balance.

A) liability; debit

B) asset; debit

C) liability; credit

D) asset; credit

  

27) Prepaid Rent is a(n) ________ account and has a normal ________ balance.

A) asset; debit

B) liability; credit  

C) liability; debit

D) asset; credit

  

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

A) liabilities and a debit balance

B) assets and a debit balance

C) liabilities and a credit balance

D) assets and a credit balance

  

29) The Salaries Payable account is a(n) ________.

A) liability account with a normal debit balance

B) asset account with a normal debit balance

C) liability account with a normal credit balance

D) asset account with a normal credit balance

  

30) For expenses, the category of account and its normal balance is ________.

A) equity and a credit balance

B) assets and a debit balance

C) assets and a credit balance

D) equity and a debit balance

  

31) The Accounts Receivable account of Brownstone, Inc. has the following postings:

Accounts Receivable

23,000	3,000
2,000

  

  

Calculate the ending balance of the account.

A) $28,000 debit

B) $25,000 debit

C) $3,000 credit

D) $22,000 debit

  

32) The Accounts Payable account of Waterford, Inc. has the following postings:

Accounts Receivable

17,000	27,000
8,000	12,000

Calculate the ending balance of the account.

A) $12,000 credit

B) $14,000 debit

C) $14,000 credit

D) $8,000 debit

  

33) A business purchases $3,500 of office supplies for cash. Which of the following sets of ledger accounts reflects the posting of this transaction?

A)  

Office Supplies

3,500

Accounts Payable

3,500

B)  

Office Supplies

3,500

Cash

3,500

C)  

Office Supplies

3,500

Accounts Payable

3,500

  

D)  

Office Supplies

3,500

Cash

3,500

  

34) When is a trial balance usually prepared?

A) after each entry is journalized

B) before the financial statements are prepared

C) after the financial statements are prepared

D) at the beginning of an accounting period

Answer 1

Solution:

1) The correct option is A) Prepaid Rent

Prepaid Rent is the rent paid in advance.

2) The correct option is D) Accounts Receivable

Accounts Receivable is a current asset i.e. Asset Account

Rest all other accounts are liability account in the question

3) The correct option is A) Accounts Receivable

Accounts Receivable arise when sale is made on account or on credit. On account sale means the customer will pay the amount in future after a specified period of time allowed to him.

4) The correct option is A) Prepaid Insurance

Prepaid Insurance is an Asset account and rest all the accounts given in options are liability.

Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you

Pls ask separate question for remaining parts