Exam 3: Analyzing Business Transactions Using T Accounts

The difference between the debit and credit side of an account is called the account ___________________.

Read each of the following transactions.Determine the accounts to be debited and credited. Cash Accounts Receivable Office Equipment Office Supplies Accounts Payable Brandon Phipps,Capital Brandon Phipps,Drawing Fees Income Rent Expense Salaries Expense Utilities Expense Received cash from credit customers

The normal balance of an account is the

Another name for permanent accounts is real accounts.

An accounting system that involves recording the effects of each transaction as debits and credits is

The increase side of an account represents the ____________________ balance of the account.

A business transaction affects at least two accounts.

Debits are used to record

Rent Revenue is increased by _________________ the account.

The accounts and balances for Paw Prints Pet Sitters on November 1 are provided below. The following transactions occurred during the month of November. a.Collected $350 from credit customers b.Issued a check for $700 for rent c.Paid $1,900 for salaries d.The owner withdrew $500 in cash for personal expenses e.Issued a check for $200 to pay the monthly utility bill f.Received $2,845 in cash for services performed g.Purchased office equipment for $1,350 on credit Using the information shown,set up T accounts for all accounts.Determine the balance for each account after all transactions have been recorded.

When preparing the trial balance,the total debits should equal the total credits.

The Net Income amount from the Income Statement is transferred to which of the following statements?

Revenue and expense accounts are called nominal or ____________________ accounts.

Read each of the following transactions.Determine the accounts to be debited and credited. Cash Accounts Receivable Office Equipment Office Supplies Accounts Payable Brandon Phipps,Capital Brandon Phipps,Drawing Fees Income Rent Expense Salaries Expense Utilities Expense Received a credit for damaged office equipment that was returned

The balances for the accounts listed below appear in the trial balance of Bubbles,Inc.Identify whether each balance would appear on the Income Statement (IS),the Balance Sheet (BS)or the Statement of Owner's Equity (OE),by entering the appropriate letters in the spaces below.(There is only one correct answer for each)

Increases in assets and revenue are both recorded with debits.

Which of the following entries records the withdrawal of cash for personal use by Ty Knott,the owner of a business?

Read each of the following transactions.Determine the accounts to be debited and credited. Cash Accounts Receivable Office Equipment Office Supplies Accounts Payable Brandon Phipps,Capital Brandon Phipps,Drawing Fees Income Rent Expense Salaries Expense Utilities Expense Performed services for cash

Which of the following accounts is not a permanent account?

A decrease in a liability is recorded on the ____________________ side of the account.