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PSU ACCOUNTING 211 - CH 2 Quiz Class [Completed]

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CHAPTER 2 QUIZ ACCOUNTING 211 SPRING 201. A business's source documents may include all of the following except:A) Sales tickets.B) Ledgers.C) Checks.D) Purchase orders.E) Bank statements.2. Identify the statement below that is correct.A) When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense.B) Promises of future payment by the customer are called accounts receivable.C) Increases and decreases in cash are always recorded in the common stock account.D) An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business.E) Accrued liabilities include accounts receivable.3. Prepaid accounts (also called prepaid expenses) are generally:A) Payments made for products and services that never expire.B) Classified as liabilities on the balance sheet.C) Decreases in equity.D) Assets that represent prepayments of future expenses.E) Promises of payments by customers.4.The record of all accounts and their balances used by a business is called a:A) Journal.B) Book of original entry.C) General Journal.D) Balance column journal.E) Ledger (or General Ledger).5. A debit:A) Always increases an account.B) Is the right-hand side of a T-account.C) Always decreases an account.D) Is the left-hand side of a T-account.E) Is not needed to record a transaction.6. An account balance is:A) The total of the credit side of the account.B) The total of the debit side of the account.C) The difference between the total debits and total credits for an account including the beginning balance.D) Assets = liabilities + equity.E) Always a credit.7. Ryan’s Landscaping paid $500 on account for supplies purchased in the prior month. Which ofthe following general journal entries will Ryan’s Landscaping make to record this transaction?A) Debit Office supplies expense, $500; credit Cash, $500.B) Debit Cash, $500; credit Office supplies, $500.C) Debit Office supplies, $500; credit Cash, $500.D) Debit Office supplies, $500; credit Accounts payable, $500.E) Debit Accounts payable, $500; credit Cash, $500.8. J. Brown Consulting paid $2,500 cash for a 5-month insurance policy which begins on December 1. Given the choices below, determine the general journal entry that J. Brown Consulting will make to record the cash payment. Assume the company’s policy is to initially record prepaid and unearned items in balance sheet accounts.A) Insurance Expense 2,500 Cash 2,500B) Cash 2,500 Insurance Expense 2,500C) Cash 2,500 Prepaid Insurance 2,500D) Prepaid Insurance 2,500 Cash 2,500E) Insurance Expense 2,500 Prepaid Insurance 2,5009. At the beginning of the current year, Trenton Company’s total assets were $248,000 and its total liabilities were $175,000. During the year, the company reported total revenues of $93,000, total expenses of $76,000 and dividends of $5,000. There were no other changes in equity duringthe year and total assets at the end of the year were $260,000. Trenton Company’s debt ratio at the end of the current year is:A) 70.6%.B) 67.3%.C) 32.7%.D) 48.6%.E) 1.42%.10. Grills R Us Catering provided $1,000 of catering services and billed its client for the amount owed. Given the choices below, determine the general journal entry that Grills R Us Catering will make to record this transaction.A) Unearned Catering Revenue 1,000 Catering Revenue 1,000B) Catering Revenue 1,000 Accounts Receivable 1,000C) Accounts Receivable 1,000 Unearned Catering Revenue 1,000D) Accounts Receivable 1,000 Catering Revenue 1,000E) Cash 1,000 Catering Revenue

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