ACC 231 Exam 1 Review Questions
with complete solution 2025/2026
What is an example of stockholder's equity? - correct answer ✔Common Stock
We buy a building on notes payable to use as our new office space. What is our Journal Entry? - correct
answer ✔Debit - Building, Credit - Notes Payable
Dwight performs $500 of service to Michael that will be paid in 30 days. What is Dwight's Journal Entry?
- correct answer ✔Debit - Accounts Receivable, $500. Credit - Service Revenue, $500
Michael buys $50 of supplies from Dwight on Account. What is Michael's Journal Entry? - correct
answer ✔Debit - Supplies, $500. Credit - Accounts Payable $500
We buy $10 of wings as a business expense, what is our Journal Entry? - correct answer ✔Debit -
Business Expense, Credit - Cash
What accounts are increased with Debit? - correct answer ✔Assets, Dividends, Expenses
We pay Ryan for his new important role in our company. What is our Journal Entry? - correct answer
✔Debit - Wage Expense, Credit - Cash
What accounts increase with a credit? - correct answer ✔Revenue, Owner's Equity, Liabilities
What accounts are on the Income Statement? - correct answer ✔Revenues and Expenses
What is an advantage of a Sole Proprietorship? - correct answer ✔You receive all business profits
with complete solution 2025/2026
What is an example of stockholder's equity? - correct answer ✔Common Stock
We buy a building on notes payable to use as our new office space. What is our Journal Entry? - correct
answer ✔Debit - Building, Credit - Notes Payable
Dwight performs $500 of service to Michael that will be paid in 30 days. What is Dwight's Journal Entry?
- correct answer ✔Debit - Accounts Receivable, $500. Credit - Service Revenue, $500
Michael buys $50 of supplies from Dwight on Account. What is Michael's Journal Entry? - correct
answer ✔Debit - Supplies, $500. Credit - Accounts Payable $500
We buy $10 of wings as a business expense, what is our Journal Entry? - correct answer ✔Debit -
Business Expense, Credit - Cash
What accounts are increased with Debit? - correct answer ✔Assets, Dividends, Expenses
We pay Ryan for his new important role in our company. What is our Journal Entry? - correct answer
✔Debit - Wage Expense, Credit - Cash
What accounts increase with a credit? - correct answer ✔Revenue, Owner's Equity, Liabilities
What accounts are on the Income Statement? - correct answer ✔Revenues and Expenses
What is an advantage of a Sole Proprietorship? - correct answer ✔You receive all business profits
