Devry ACCT 212 Week 2 Quiz
(TCO 2) The debt created by a business when it makes a purchase on account is a(n) (Points : 3)
- revenue.
- prepaid expense.
- account receivable.
- account payable.
Question 2. 2. (TCO 2) A company performed services for a customer for cash. This transaction increased assets and (Points : 3)
- decreased equity.
- increased liabilities.
- increased expenses.
- increased revenues.
Question 3. 3. (TCO 2) When a company borrows cash from the bank (Points : 3)
- total assets remain the same.
- liabilities are increased.
- retained earnings is decreased.
- total liabilities remain the same.
Question 4. 4. (TCO 2) The left side of a T-account is always the (Points : 3)
- increase side.
- decrease side.
- debit side.
- credit side.
Question 5. 5. (TCO 2) An account is increased by a debit and has a debit balance. This account is (Points : 3)
- an expense account.
- a liability account.
- an asset account.
- both an expense account and an asset account.
Question 6. 6. (TCO 2) When journalizing and posting transactions in the books (Points : 3)
- the rules of debit and credit are followed to increase or decrease each account.
- the credit side of the transaction is entered on the left margin.
- it is not necessary to use both the journal and the ledger.
- debits in the journal can be posted as credits in the ledger.
Question 7. 7. (TCO 3) Under accrual accounting, the impact of a business transaction is recorded (Points : 3)
- as it occurs.
- when cash is received or paid.
- at the end of the accounting period.
- only if the amount of the transaction is material.
Question 8. 8. (TCO 3) The event that triggers revenue recognition for the sale of goods is the (Points : 3)
- date a contract is signed.
- date cash is received.
- transfer of control of the goods to the purchaser.
- completion of the services.
Question 9. 9. (TCO 3) The balance sheet reports (Points : 3)
- assets, liabilities and stockholders’ equity.
- the changes in retained earnings.
- assets, liabilities, revenues and expenses.
- revenues and expenses.
Question 10. 10. (TCO 3) After the closing entries are prepared (Points : 3)
- all asset accounts will have a zero balance.
- the Retained Earnings account will have the correct ending balance.
- the temporary accounts will have debit balances.
- all liability accounts will have a zero balance.
