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Devry ACCT 212 Week 2 Quiz

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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.

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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.