week 2 quiz answer key.docx - The Office Equipment account...

The Office Equipment account normally has a credit balance.
A. True
B.
False
Answer Key:False
Question 2 of 10
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A company returned for credit a portion of the office supplies purchased previously for future use on
credit. What entry is required?
Question 3 of 10
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A $150 debit to Office Equipment was entered in the account as a $150 credit. This error caused the
trial balance to be out of balance by:

Question 4 of 10
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One of the purposes of a ledger account is to record the complete effect of a transaction in one
place.
Question 5 of 10

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Posting a transaction requires more knowledge than journalizing a transaction.
A. True
B.
False
Answer Key:False
Question 6 of 10
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Transactions are recorded in the journal in chronological order.
Question 7 of 10
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Expense accounts usually have debit balances and show the cost associated with producing
revenue during an accounting period.
Question 8 of 10
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Liabilities represent claims against the company’s assets and may be in the form of accounts
payable or notes payable.

Question 9 of 10
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The type of analysis that shows the percentage that each item in a financial statement is of some
significant total such as total assets or sales is called:

A. Horizontal analysis

B. Vertical analysis

C. Balance sheet analysis

D. None of the above
Answer Key:B
Question 10 of 10
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Every transaction always affects two or more accounts in a double-entry accounting system.

A journal aids in the division of labor by allowing one person to journalize entries while another
individual may post these entries.
Question 2 of 10
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If $500 cash and a $2,000 note are given in exchange for a delivery truck for use in a business: