Term
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Definition
The detailed record of the changes in a particular asset liability or stockholders' equity is called
A) an account
B) a journal
C) a ledger
D) a trial balance |
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Term
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Definition
Which of the following accounts is a liability?
A) accounts receivable
B) service revenue
C) unearned revenue
D) prepaid rent expense |
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Term
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Definition
The left side of an account is used to record which of the following?
A) debit or credit depending on the type of account
B) increases
C) credits
D) debits |
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Term
| Accounts payable is increased with a credit |
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Definition
Which of the following is true?
A) prepaid expenses are decreased with a debit
B) Unearned revenue is increased with a debit
C) Rent expense is increased with a credit
D) accounts payable is increased with a credit |
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Term
debit office supplies 2500
credit accounts payable 2500 |
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Definition
Your business purchased office supplies of $2500 on account. The journal entry to record this transaction is as follows:
A) debit office supplies credit accounts receivable
B) debit office supplies credit accounts payable
C) debit accounts payable credit office supplies
D) debit cash credit accounts payable |
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Term
Debit accounts payable 800
credit cash 800 |
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Definition
ABC Inc purchases office supplies on account. Which is the correct journal entry.
A) debit accounts payable 800 credit accounts receivable 800
B) debit accounts payable 800 credit cash 800
C) debit cash 800 credit accounts payable 800
D) debit office supplies 800 credit cash 800 |
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Term
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Definition
Pixel corp recorded a cash collection on account by debiting cash and crediting accounts payable. What will the trial balance show for this error?
A) cash is overstated
B) expenses overstated
C) liabilities overstated
D) trial balance will not balance |
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Term
| Journalize transactions, post to the accounts, prepare trial balance |
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Definition
Which sequence correctly summarizes the accounting process?
A) journalize transactions, post to the accounts, prepare trial balance
B) journalize transactions, prepare trial balance, post to the accounts
C) post to the accounts, journalize transactions, prepare trial balance
D) prepare trial balance, journalize transactions, post to the accounts |
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Term
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Definition
ABC reported assets of $800 and equity of $480. What is ABC's debt ratio?
A) 60%
B) 40%
C) 67%
D) not enough information provided |
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