Exam 2: Recording Business Transactions

A) Interest payable
B) Prepaid insurance
C) Cash
D) Both A and B

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A) Cash is credited for $20,000.
B) Cash is debited for $20,000.
C) Capital is debited for $20,000.
D) Both B and C occur.

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A) A liability is debited and an expense is credited.
B) An asset is credited and a liability is debited.
C) An asset is credited and an expense is debited.
D) An asset is debited and a liability is credited.

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A)
$\begin{array} { | l | l | l | l | } \hline \text { Notes payable } & & 1,000 & \\\hline \text { Interest expense } & & 200 & \\\hline & \text { Cash } & & 1,200 \\\hline\end{array}$
B)
$\begin{array} { | l | l | l | l | } \hline \text { Cash } & & 1,200 & \\\hline & \text { Notes payable } & & 1,000 \\\hline & \text { Interest expense } & & 200 \\\hline\end{array}$
C)
$\begin{array} { | l | l | l | l | } \hline \text { Notes payable } & & 1,200 & \\\hline & \text { Cash } & & 1,000 \\\hline & \text { Interest expense } & & 200 \\\hline\end{array}$
D)
$\begin{array} { | l | l | l | l | } \hline \text { Cash } & & 1,000 & \\\hline & \text { Notes payable } & & 1,200 \\\hline & \text { Interest expense } & & 200 \\\hline\end{array}$

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A) debit-credit theory.
B) preparing a trial balance.
C) posting.
D) T-account analysis.

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A)
$\begin{array} { | l | l | l | l | } \hline \text { Cash } & & 6,000 & \\\hline & \text { Capital } & & 6,000 \\\hline\end{array}$
B)
$\begin{array} { | l | l | l | l | } \hline \text { Accounts payable } & & 6,000 & \\\hline & \text { Cash } & & 6,000 \\\hline\end{array}$
C)
$\begin{array} { | l | l | l | l | } \hline \text { Capital } & & 6,000 & \\\hline & \text { Cash } & & 6,000 \\\hline\end{array}$
D)
$\begin{array} { | l | l | l | l | } \hline \text { Capital } & & 6,000 & \\\hline & \text { Accounts payable } & & 6,000 \\\hline\end{array}$

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A)
$\begin{array} { | l | l | l | l | } \hline \text { Equipment } & & 20,000 & \\\hline & \text { Notes payable } & & 12,000 \\\hline & \text { Cash } & & 8,000 \\\hline\end{array}$
B)
$\begin{array} { | l | l | l | l | } \hline \text { Cash } & & \$ 8,000 & \\\hline \text { Notes payable } & & \$ 12,000 & \\\hline & \text { Equipment } & & \$ 20,000 \\\hline\end{array}$
C)
$\begin{array} { | l | l | l | l | } \hline \text { Cash } & & 8,000 & \\\hline \text { Notes payable } & & 4,000 & \\\hline & \text { Equipment } & & 12,000 \\\hline\end{array}$
D)
$\begin{array} { | l | l | l | l | } \hline \text { Equipment } & & 8,000 & \\\hline \text { Notes payable } & & 4,000 & \\\hline & \text { Cash } & & 12,000 \\\hline\end{array}$

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A) An asset is debited and a liability is credited.
B) A liability is debited and a liability is credited.
C) An asset is credited and a liability is debited.
D) An asset is debited and an asset is credited.

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A)
$\begin{array} { | l | l | l | l | } \hline \text { Cash } & & 1,400 & \\\hline & \text { Accounts receivable } & & 1,000 \\\hline & \text { Service revenue } & & 400 \\\hline\end{array}$
B)
$\begin{array} { | l | l | l | l | } \hline \text { Cash } & & 400 & \\\hline \text { Accounts receivable } & & 1,000 & \\\hline & \text { Service revenue } & & 1,400 \\\hline\end{array}$
C)
$\begin{array} { | l | l | l | l | } \hline \text { Service revenue } & & 1,000 & \\\hline \text { Cash } & & 400 & \\\hline & \text { Accounts receivable } & & 1,400 \\\hline\end{array}$
D)
$\begin{array} { | l | l | l | l | } \hline \text { Service revenue } & & 1,400 & \\\hline & \text { Cash } & & 1,000 \\\hline & \text { Accounts payable } & & 400 \\\hline\end{array}$

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A)
$\begin{array} { | l | l | l | l | } \hline \text { Accounts payable } & & 200 & \\\hline & \text { Supplies } & & 200 \\\hline\end{array}$
B)
$\begin{array} { | l | l | l | l | } \hline \text { Accounts payable } & & 200 & \\\hline & \text { Supplies } & & 200 \\\hline\end{array}$ .
C)
$\begin{array} { | l | l | l | l | } \hline \text { Supplies } & & 200 & \\\hline & \text { cash } & & 200 \\\hline\end{array}$
D)
$\begin{array} { | l | l | l | l | } \hline \text { Supplies } & & 200 & \\\hline & \text { Accounts payable } & & 200 \\\hline\end{array}$ .

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A) Cash is credited for $12,000.
B) Cash is debited for $12,000.
C) Accounts payable is credited for $12,000.
D) Both A and C occur.

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A) Cash is credited for $8,000.
B) Cash is debited for $8,000.
C) Equipment is debited for $8,000.
D) Both A and C occur.

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A) Cash
B) Accounts payable
C) Accounts receivable
D) Sales

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A) Ledger
B) Account
C) Journal
D) Trial balance

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A) $1,000
B) $3,000
C) $4,000
D) $3,150

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A) Titles of the accounts debited and credited, along with the dollar amounts
B) A brief explanation of the transaction
C) Date of the transaction
D) All of the above

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