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Answers Chapter 3 Quiz.s13

This document appears to be a quiz for an accounting course covering chapter 3. It contains 6 multiple choice questions testing concepts related to the basic accounting equation, effects of transactions on accounts, debit and credit rules, and journal entry format. It also contains a short journalizing exercise involving 5 basic business transactions.

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Mary Joy Morales Buquiran
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71 views2 pages

Answers Chapter 3 Quiz.s13

This document appears to be a quiz for an accounting course covering chapter 3. It contains 6 multiple choice questions testing concepts related to the basic accounting equation, effects of transactions on accounts, debit and credit rules, and journal entry format. It also contains a short journalizing exercise involving 5 basic business transactions.

Uploaded by

Mary Joy Morales Buquiran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name: __________________________

ACG 201
Chapter 3 Quiz
Spring 2013

1. If total liabilities increased by $5,000, then


A) assets must have decreased by $5,000.

B) stockholders' equity must have increased by $5,000.

C) assets must have increased by $5,000, or stockholders' equity must have decreased by $5,000.

D) assets and stockholders' equity each increased by $2,500.

2. If expenses are paid in cash, then


A) assets will increase.

B) liabilities will decrease.

C) stockholders' equity will increase.

D) assets will decrease.

3. A revenue generally
A) increases assets and liabilities.

B) increases assets and stockholders' equity.

C) increases assets and decreases stockholders' equity.

D) leaves total assets unchanged.

4. Which accounts normally have debit balances?


A) Assets, expenses, and revenues.

B) Assets, expense, and retained earnings.

C) Assets, liabilities, and dividends.

D) Assets, expenses, and dividends.

5. Which of the following journal entries is recorded correctly and in the basic format?
A) Salaries/Wages Expense 550
Cash 1,500
Advertising Expense 950
B) Salaries/Wages Expense 550
Advertising Expense 950
Cash 1,600
C) Cash 1,500
Salaries/Wages Expense 550
Advertising Expense 950
D) Salaries/Wages Expense 550
Advertising Expense 950
Cash 1,500

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6. Journalize (make a journal entry for) the following business transactions in general journal form. Identify each
transaction by number.
1. Owner invested $50,000 in exchange for common stock of the corporation.
2. Hires an employee to be paid $400 per week, starting tomorrow.
3. Paid two years' rent in advance, $7,200.
4. Paid the worker's (from transaction #2) weekly wage.
5. Recorded service revenue earned and received cash for the week, $1,500.

1. Cash 50,000
Common Stock 50,000

2. No entry.

3. Prepaid Rent 7,200


Cash 7,200

4. Wage Expense 400


Cash 400

5. Cash 1,500
Service Revenue 1,500

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