DeAnza College

ACCT 1A

CHAPTER 2

1)What is the best explanation for this journal entry? a.Received cash for services to be performed in the future. b.Paid cash in advance for services to be performed. c.Received cash for services performed.

d.Performed services for which cash is owed.

2. Which of the following types of accounts have a normal credit balance? a.Liabilities and expenses

b.Assets and liabilities

c.Capital and drawing

d.Revenues and capital

3. The debit side of an account

a.is the left side of the account

b.depends on whether the account is an asset, liability, or owner's equity c.is the right side of the account

d.can be either side of the account depending on how the accountant set up the system

4. Which of the following accounts is an owner's equity account? a.Cash

b.Accounts Payable

c.Prepaid Insurance

d.Ross Morris, Capital

5. Which of the following is not considered to be a liability? a.Accounts Payable

b.Unearned Revenue

c.Wages Payable

d.Accounts Receivable

6. Cash was paid by Janer's Cleaning Service to creditors on account. Which of the following entries for Janer's Cleaning Service records this transaction?

a.Accounts Payable, debit; Accounts Receivable, credit

b.Accounts Payable, debit; Cash, credit c.Accounts Receivable, debit; Cash, credit d.Cash, debit; Debbi Janer, Capital, credit

7. A cash payment is recorded in the cash account as a.neither a debit nor a credit

b.a credit

c.a debit

d.either a debit or a credit

8. Which of the following entries records the acquisition of office supplies on account? a.Accounts Receivable, debit; Office Supplies, credit

b.Office Supplies, debit; Cash, credit

c.Office Supplies, debit; Accounts Payable, credit