Chapter 2: Recording Business Transactions

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Which of the following accounts is NOT an example of an asset? A) Accounts receivable B) Cash C) Building D) Notes payable Which of the following accounts is NOT an example of a liability? A) Wages payable B) Notes payable C) Accounts payable D) Accounts receivable Which of the following accounts is NOT an example of an owner’s equity account? A) Drawing B) Capital C) Additional investments D) Cash Accountants first record transactions in the: A) chart of accounts. B) trial balance. C) journal. D) ledger. Which of the following accounts is an asset? A) Salary expense B) Accounts payable C) Service revenue D) Prepaid expenses Which of the following accounts is a liability? A) Accounts payable B) Prepaid expenses C) Salary expense D) Service revenue Which of the following accounts is an owner’s equity account? A) Accrued Liability B) Accounts Payable C) Prepaid Expense D) Capital Prepaid expenses are recorded as: A) assets. B) liabilities. C) debits and credits. D) capital. Which of the following are accrued expenses? A) Taxes payable B) Interest payable C) Salary payable D) All are accrued expenses

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10. Which of the following accounts is an example of a liability? A) Service revenue B) Building

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C) Accounts receivable D) Notes payable 11. Which of the following is the detailed record of the changes in a particular asset, liability, or owner’s equity? A) Journal B) Trial balance C) Ledger D) Account 12. Which of the following is the book (or printout) holding all the accounts? A) Account B) Trial balance C) Journal D) Ledger 13. Which of the following is the chronological record of transactions? A) Ledger B) Account C) Journal D) Trial balance 14. Which of the following is a list of all the accounts with their balances? A) Journal B) Trial balance C) Ledger D)