Acct 201 Quiz 2 (Ch3, 4)

Front 1

1. Courtney Company purchased equipment for $1,800 cash. As a result of this event,
a. equity decreased by $1,800.
b. assets increased by $1,800.
c. assets remained unchanged.
d. Both a and b.

Back 1

c. assets remained unchanged.

Front 2

2. Budke Corporation paid dividends of $5,000. As a result of this event,
a. The dividends account was debited for $5,000.
b. The dividends account was credited for $5,000.
c. The cash account was debited for $5,000.
d. Both b and c.

Back 2

a. The dividends account was debited for $5,000.

Front 3

3. The normal balance of any account is the
a. left side.
b. right side.
c. side which increases that account.
d. side which decreases that account.

Back 3

c. side which increases that account.

Front 4

4. July 7, 2012, Shireman Enterprises received cash $1,400 for services rendered. The entry to record this transaction will include:
a. a debit to Service Revenue of $1,400.
b. a credit to Accounts Receivable of $1,400.
c. a debit to Cash of $1,400
d. a credit to Accounts Payable of $1,400.

Back 4

c. a debit to Cash of $1,400

Front 5

5. The revenue recognition principle dictates that revenue should be recognized in the accounting records:
a. when cash is received.
b. when it is earned.
c. at the end of the month.
d. in the period that income taxes are paid.

Back 5

b. when it is earned.

Front 6

6. Greese Company purchased office supplies costing $4,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $1,100 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be:
a. debit Office Supplies Expense, $1,100; credit Office Supplies, $1,100.
b. debit Office Supplies, $2,900; credit Office Supplies Expense, $2,900.
c. debit Office Supplies Expense, $2,900; credit Office Supplies, $2,900.
d. debit Office Supplies, $1,100; credit Office Supplies Expense, $1,100.

Back 6

c. debit Office Supplies Expense, $2,900; credit Office Supplies, $2,900.

Front 7

7. Unearned revenue is classified as a(n):
a. asset account.
b. revenue account.
c. contra revenue account.
d. liability.

Back 7

d. liability.

Front 8

8. Accumulated Depreciation is a(n):
a. expense account.
b. stockholders’ equity account.
c. liability account.
d. contra asset account.

Back 8

d. contra asset account.

Front 9

9. Snelling Tables paid employee wages on and through Friday, January 26, and the next payroll will be paid in February. There are three more working days in January (29–31). Employees work 5 days a week and the company pays $800 a day in wages. What will be the adjusting entry to accrue wages expense at the end of January?
a. Wages Expense 800
Wages Payable 800
b. Wages Expense 4,000
Wages Payable 4,000
c. Wages Expense 2,400
Wages Payable 2,400
d. No adjusting entry is required.

Back 9

c. Wages Expense 2,400
Wages Payable 2,400

Front 10

10. If a business has received cash in advance of services performed and credits a liability account, the adjusting entry needed after the services are performed will be:
a. debit Unearned Revenue and credit Cash.
b. debit Unearned Revenue and credit Revenue Earned.
c. debit Unearned Revenue and credit Prepaid Expense.
d. debit Unearned Revenue and credit Accounts Receivable.

Back 10

b. debit Unearned Revenue and credit Revenue Earned.