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04 Chapter 2 Recording transactions

Total questions: 10

Worksheet time: 7mins

Name
Class
Date
1.

The degree of _____ is one of the methods used to quantify a company’s financial risk (the risk associated with how the company finances its operations).

a)

financial leverage

b)

prepaid expense

c)

general ledger

d)

bank statements

2.

Which of the followings does not belong to source documents?

a)

sales invoices

b)

purchase orders

c)

customer bills

d)

receipt voucher

3.

Translation: unearned revenue

(a)  

4.

Translation: credit revenue

(a)  

5.

According to ______principle, revenue is recorded when earned.

a)

matching

b)

full-disclosure

c)

materiality

d)

revenue recognition

6.

The normal balance of repaid insurance is a credit balance.

a)

True

b)

False

7.

What is the journal entry to record the collection of cash for completed chiropractic work?

a)

Debit Cash $2,400, Credit Service Revenue

b)

Debit Accounts Receivable $2,400, Credit Cash $2,400

c)

Debit Cash $2,400, Credit Accounts Payable $2,400

d)

Debit Revenue $2,400, Credit Cash $2,400

8.

What is the journal entry to record the purchase of medical supplies on credit?

a)

Debit Medical Supplies $580, Credit Cash $580

b)

Debit Accounts Payable580, Credit Medical Supplies $580

c)

Debit Medical Supplies $580, Credit Accounts Payable $580

d)

Debit Accounts Payable $580, Credit Cash $580

9.

What is the journal entry to record Jay Ball’s investment of cash and medical equipment at the beginning of the month?

a)

Debit Cash $27,000, Debit Medical Equipment $27,000, Credit Accounts Payable $54,000

b)

Debit Cash $27,000, Credit Medical Equipment $27,000

c)

Debit Medical Equipment $27,000, Credit Cash $27,000

d)

Debit Cash $27,000, Debit Medical Equipment $27,000, Credit Owner’s Equity $54,000

10.

Which of the following statements is correct?

a)

The chart of accounts is a list of all accounts with their balances

b)

The trial balance is a list of all accounts with their balances , divided as debit or credit

c)

The ledger is maintained in chart-of-accounts order

d)

Both B and C are correct