Question 1

An account that would be increased by a credit is

Accepted Answer

A)  Cash. 
B)  Accounts Receivable. 
C)  Utilities Expense. 
D)  Accounts Payable. 
A)  Cash. 
B)  Accounts Receivable. 
C)  Utilities Expense. 
D)  Accounts Payable.

Question 2

Revenue has a normal credit balance, and increases are recorded on the credit side.

Accepted Answer

A) True 
 B)False

Question 3

Explain the difference between expenses and withdrawals.

Accepted Answer

A withdrawal is used for recording the o

Question 4

Expenses are recorded when paid.

Accepted Answer

A) True 
 B)False

Question 5

What would be the effect on accounts if the business provided services to a customer on account?

Accepted Answer

A)  An asset would be debited and an expense credited. 
B)  Capital would be debited and revenue credited. 
C)  An asset would be debited and revenue credited. 
D)  An asset would be debited and Capital credited. 
A)  An asset would be debited and an expense credited. 
B)  Capital would be debited and revenue credited. 
C)  An asset would be debited and revenue credited. 
D)  An asset would be debited and Capital credited.

Question 6

Revenue increases on the debit side of the account.

Accepted Answer

A) True 
 B)False

Question 7

The Accounts Payable account is

Accepted Answer

A)  a revenue, and it has a normal debit balance. 
B)  an expense, and it has a normal credit balance. 
C)  a liability, and it has a normal debit balance. 
D)  a liability, and it has a normal credit balance. 
A)  a revenue, and it has a normal debit balance. 
B)  an expense, and it has a normal credit balance. 
C)  a liability, and it has a normal debit balance. 
D)  a liability, and it has a normal credit balance.

Question 8

Which of the following is prepared last?

Accepted Answer

A)  Balance Sheet 
B)  Income Statement 
C)  Statement of Owner's Equity 
D)  Trial Balance 
A)  Balance Sheet 
B)  Income Statement 
C)  Statement of Owner's Equity 
D)  Trial Balance

Question 9

A chart of accounts

Accepted Answer

A)  is set up in alphabetical order. 
B)  includes account balances. 
C)  is a listing of all the accounts used by a company. 
D)  All of the above are correct. 
A)  is set up in alphabetical order. 
B)  includes account balances. 
C)  is a listing of all the accounts used by a company. 
D)  All of the above are correct.

Question 10

What is the James Long Company's net income or net loss if it had revenue of $1,200, salary expense of $300, utility expense of $500, and withdrawals of $500 during May?

Accepted Answer

A)  $400 
B)  ($100) 
C)  $100 
D)  $900 
A)  $400 
B)  ($100) 
C)  $100 
D)  $900

Question 11

What would be the effect on accounts if the business purchased office supplies for cash?

Accepted Answer

A)  An asset would be debited and an expense credited. 
B)  Capital would be debited and revenue credited. 
C)  An asset would be debited and revenue credited. 
D)  An asset would be debited and an asset credited. 
A)  An asset would be debited and an expense credited. 
B)  Capital would be debited and revenue credited. 
C)  An asset would be debited and revenue credited. 
D)  An asset would be debited and an asset credited.

Question 12

A credit means the right-side of an account and a decrease for all accounts.

Accepted Answer

A) True 
 B)False

Question 13

A chart of accounts is below. Following is a series of transactions. Indicate for each transaction the accounts that should be debited and credited by inserting the proper account number in the space provided.
$$\begin{array} { l l } 
111 \text { Cash } & 312 \text { C. Webster, Withdrawals } \
112 \text { Accounts Receivable } & 411 \text { Delivery Fees Earned } \
121 \text { Delivery Equipment } & 511 \text { Salaries Expense } \
211 \text { Accounts Payable } & 512 \text { Rent Expense } \
311 \text { C. Webster, Capital } & 513 \text { Advertising Expense } \
& 514 \text { Gas Expense }
\end{array}$$
Debit          Credit          Transaction
________ ________ 1. Invested cash in the business.
________ ________ 2. Received cash for delivery services performed.
________ ________ 3. Billed a customer for services performed.
________ ________ 4. Paid accounts payable.
________ ________ 5. Collected accounts receivable.
________ ________ 6. Withdrew cash for personal use.
________ ________ 7. Paid advertising expense.
________ ________ 8. Paid rent expense for the month.
________ ________ 9. Purchased delivery equipment on account.
________ ________ 10. Paid salaries for the week.

Accepted Answer

111, 311
111, 411
11

Question 14

The financial statements contain debit and credit columns.

Accepted Answer

A) True 
 B)False

Question 15

The entry to record the Molly Company payment of $300 for repairs just completed to computer equipment it owns would include

Accepted Answer

A)  debit Repair Expense, $300; credit Accounts Payable, $300. 
B)  debit Accounts Payable, $300; credit Cash, $300. 
C)  debit Repair Expense, $300; credit Cash, $300. 
D)  debit Cash, $300; credit Repair Expense, $300. 
A)  debit Repair Expense, $300; credit Accounts Payable, $300. 
B)  debit Accounts Payable, $300; credit Cash, $300. 
C)  debit Repair Expense, $300; credit Cash, $300. 
D)  debit Cash, $300; credit Repair Expense, $300.

Question 16

Phillip's Photography began business on July 1. Record the transactions in the T accounts. Place the letter of the transaction next to the entry. Foot the T accounts where appropriate.
a. Phillip invested $6,000 in his business from his personal savings account.
b. Bought photographic equipment on account, $1,200.
c. Performed services for a customer on account, $800.
d. Utilities expense due but unpaid, $80.
e. Collected $100 from customer in transaction c.
f. Phillip withdrew $70 for personal use. $$\begin{array}{l}
\text {Cash  111 }\
\begin{array} { l | l r } 
\hline& \
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Accts. Rec. 112 }\
\begin{array} { l | l r } 
\hline& \
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Photo Equip.  121 }\
\begin{array} { l | l r } 
\hline& \
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Accts. Pay.  211 }\
\begin{array} { l | l r } 
\hline& \
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Phillip's Cap.  311 }\
\begin{array} { l | l r } 
\hline& \
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Phillip's With.  312 }\
\begin{array} { l | l r } 
\hline& \
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Photo Fees 411 }\
\begin{array} { l | l r } 
\hline& \
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Utilities Exp. 512 }\
\begin{array} { l | l r } 
\hline& \
\end{array}
\end{array}$$ $$\begin{array}{l}
\text {Advertising Exp.  513 }\
\begin{array} { l | l r } 
\hline& \
\end{array}
\end{array}$$

Accepted Answer

The answer of Phillip's Photography began business on July 1....

Question 17

Double-entry accounting requires transactions to affect two or more accounts, and the total of the debits and credits must equal.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following entries records the investment of cash by John, owner of a sole proprietorship?

Accepted Answer

A)  Debit John, Capital; credit Cash 
B)  Debit Cash; credit John, Withdrawals 
C)  Debit John, Withdrawals; credit Cash 
D)  Debit Cash; credit John, Capital 
A)  Debit John, Capital; credit Cash 
B)  Debit Cash; credit John, Withdrawals 
C)  Debit John, Withdrawals; credit Cash 
D)  Debit Cash; credit John, Capital

Question 19

Which of the following entries would be used to record the billing of fees earned?

Accepted Answer

A)  Debit Accounts Receivable and credit Rental Fees 
B)  Credit Cash and credit Rental Fees 
C)  Debit Cash and credit Rental Fees 
D)  Debit Cash and debit Rental Fees 
A)  Debit Accounts Receivable and credit Rental Fees 
B)  Credit Cash and credit Rental Fees 
C)  Debit Cash and credit Rental Fees 
D)  Debit Cash and debit Rental Fees

Question 20

One of the following statements does not help to explain the design of a T account:

Accepted Answer

A)  The account has a balance. 
B)  The account has a left side. 
C)  The account has a right side. 
D)  The account has a title. 
A)  The account has a balance. 
B)  The account has a left side. 
C)  The account has a right side. 
D)  The account has a title.

An account that would be increased by a credit is

Revenue has a normal credit balance, and increases are recorded on the credit side.

Explain the difference between expenses and withdrawals.

Expenses are recorded when paid.

What would be the effect on accounts if the business provided services to a customer on account?

Revenue increases on the debit side of the account.

The Accounts Payable account is

Which of the following is prepared last?

A chart of accounts

What is the James Long Company's net income or net loss if it had revenue of $1,200, salary expense of $300, utility expense of $500, and withdrawals of $500 during May?

What would be the effect on accounts if the business purchased office supplies for cash?

A credit means the right-side of an account and a decrease for all accounts.

The financial statements contain debit and credit columns.

The entry to record the Molly Company payment of $300 for repairs just completed to computer equipment it owns would include

Double-entry accounting requires transactions to affect two or more accounts, and the total of the debits and credits must equal.

Which of the following entries records the investment of cash by John, owner of a sole proprietorship?

Which of the following entries would be used to record the billing of fees earned?

One of the following statements does not help to explain the design of a T account:

Accounting Concepts and Procedures: an Introduction

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Exam 2: Debits and Credits: Analyzing and Recording Business Transactions

An account that would be increased by a credit is

Revenue has a normal credit balance, and increases are recorded on the credit side.

Explain the difference between expenses and withdrawals.

Expenses are recorded when paid.

What would be the effect on accounts if the business provided services to a customer on account?

Revenue increases on the debit side of the account.

The Accounts Payable account is

Which of the following is prepared last?

A chart of accounts

What is the James Long Company's net income or net loss if it had revenue of $1,200, salary expense of $300, utility expense of $500, and withdrawals of $500 during May?

What would be the effect on accounts if the business purchased office supplies for cash?

A credit means the right-side of an account and a decrease for all accounts.

The financial statements contain debit and credit columns.

The entry to record the Molly Company payment of $300 for repairs just completed to computer equipment it owns would include

Double-entry accounting requires transactions to affect two or more accounts, and the total of the debits and credits must equal.

Which of the following entries records the investment of cash by John, owner of a sole proprietorship?

Which of the following entries would be used to record the billing of fees earned?

One of the following statements does not help to explain the design of a T account:

Accounting Concepts and Procedures: an Introduction

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters