ACCT 331 Chapter 2 Exam Questions With
Complete Answers
The Accounting Process Cycle - ANSWER Is the process used to identify, analyze, record,
and summarize transactions and prepare financial statements.
A collection of storage areas, called accounts, used to keep track of increases and
decreases in financial position elements is: - ANSWER a ledger.
In the double-entry system, debit means: - ANSWER A debit refers to the left side of a
ledger account.
A chronological record of all economic events affecting a firm is provided by a: -
ANSWER a journal.
A list of the general ledger accounts and their balances at a particular date is a: -
ANSWER Trial balance.
Danielle Corporation received $2,000,000 from investors and issued them shares of its
stock. Danielle's journal entry to record this transaction would include a: - ANSWER
credit to common stock.
The journal entry to record the borrowing of cash and the signing of a note payable
involves: - ANSWER
, Incurring an expense on account would be recorded with a: - ANSWER debit to an
expense.
Providing services to customers on account would be recorded with a: - ANSWER debit
to an asset.
The journal entry to record the borrowing of cash and the signing of a note payable
involves: - ANSWER a debit to cash and a credit to note payable.
The closing entry for revenues involves: - ANSWER a debit to revenues and a credit to
retained earnings.
The journal entry to record cash received from customers who previously were provided
services on account involves: - ANSWER a debit to cash and a credit to accounts
receivable.
The reason we post journal entries is to - ANSWER reflect the information in journal
entries in ledger accounts.
We can state the accounting equation for a corporation as: - ANSWER A − L − SE = 0.
Which of the following is most likely an accrued liability? - ANSWER Interest on
borrowing
Complete Answers
The Accounting Process Cycle - ANSWER Is the process used to identify, analyze, record,
and summarize transactions and prepare financial statements.
A collection of storage areas, called accounts, used to keep track of increases and
decreases in financial position elements is: - ANSWER a ledger.
In the double-entry system, debit means: - ANSWER A debit refers to the left side of a
ledger account.
A chronological record of all economic events affecting a firm is provided by a: -
ANSWER a journal.
A list of the general ledger accounts and their balances at a particular date is a: -
ANSWER Trial balance.
Danielle Corporation received $2,000,000 from investors and issued them shares of its
stock. Danielle's journal entry to record this transaction would include a: - ANSWER
credit to common stock.
The journal entry to record the borrowing of cash and the signing of a note payable
involves: - ANSWER
, Incurring an expense on account would be recorded with a: - ANSWER debit to an
expense.
Providing services to customers on account would be recorded with a: - ANSWER debit
to an asset.
The journal entry to record the borrowing of cash and the signing of a note payable
involves: - ANSWER a debit to cash and a credit to note payable.
The closing entry for revenues involves: - ANSWER a debit to revenues and a credit to
retained earnings.
The journal entry to record cash received from customers who previously were provided
services on account involves: - ANSWER a debit to cash and a credit to accounts
receivable.
The reason we post journal entries is to - ANSWER reflect the information in journal
entries in ledger accounts.
We can state the accounting equation for a corporation as: - ANSWER A − L − SE = 0.
Which of the following is most likely an accrued liability? - ANSWER Interest on
borrowing
