Question 1

The side of an account that increases the balance is always the same as the normal balance side.

Accepted Answer

A) True 
 B)False

Question 2

The income statement contains

Accepted Answer

A)  liabilities. 
B)  revenues. 
C)  assets. 
D)  Both B and C are correct. 
A)  liabilities. 
B)  revenues. 
C)  assets. 
D)  Both B and C are correct.

Question 3

A debit to a liability account was posted to a revenue account. This error would cause

Accepted Answer

A)  revenues to be understated. 
B)  liabilities to be understated. 
C)  Capital to be overstated. 
D)  None of the above are correct. 
A)  revenues to be understated. 
B)  liabilities to be understated. 
C)  Capital to be overstated. 
D)  None of the above are correct.

Question 4

The business provided services to a cash customer. To record this,

Accepted Answer

A)  an asset is debited and a liability is credited. 
B)  an asset is debited and a revenue is credited. 
C)  an expense is debited and Capital is credited. 
D)  None of these are correct. 
A)  an asset is debited and a liability is credited. 
B)  an asset is debited and a revenue is credited. 
C)  an expense is debited and Capital is credited. 
D)  None of these are correct.

Question 5

A debit means the left-hand side of an account and an increase for all accounts.

Accepted Answer

A) True 
 B)False

Question 6

The Accounts Receivable account has a zero opening balance, total debit postings of $1,700 and credit postings of $900. The balance of the account is

Accepted Answer

A)  $800 debit. 
B)  $800 credit. 
C)  $2,600 credit. 
D)  $2,600 debit. 
A)  $800 debit. 
B)  $800 credit. 
C)  $2,600 credit. 
D)  $2,600 debit.

Question 7

Accounts Receivable indicates amounts owed to us by our clients or customers.

Accepted Answer

A) True 
 B)False

Question 8

Dollar signs are not used in formal financial reports.

Accepted Answer

A) True 
 B)False

Question 9

Why is Revenue increased on the Credit side? (Explain as it pertains to the expanded accounting equation and its relationship to Owner's Equity.)

Accepted Answer

Revenue is an increa

Question 10

Which of the following errors would cause the trial balance to be out of balance?

Accepted Answer

A)  An entry is posted twice. 
B)  An entry is not posted at all. 
C)  A debit is entered as $100 and the credit is entered at $1,000. 
D)  None of these answers are correct. 
A)  An entry is posted twice. 
B)  An entry is not posted at all. 
C)  A debit is entered as $100 and the credit is entered at $1,000. 
D)  None of these answers are correct.

The side of an account that increases the balance is always the same as the normal balance side.

The income statement contains

A debit to a liability account was posted to a revenue account. This error would cause

The business provided services to a cash customer. To record this,

A debit means the left-hand side of an account and an increase for all accounts.

The Accounts Receivable account has a zero opening balance, total debit postings of $1,700 and credit postings of $900. The balance of the account is

Accounts Receivable indicates amounts owed to us by our clients or customers.

Dollar signs are not used in formal financial reports.

Why is Revenue increased on the Credit side? (Explain as it pertains to the expanded accounting equation and its relationship to Owner's Equity.)

Which of the following errors would cause the trial balance to be out of balance?

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

The side of an account that increases the balance is always the same as the normal balance side.

The income statement contains

A debit to a liability account was posted to a revenue account. This error would cause

The business provided services to a cash customer. To record this,

A debit means the left-hand side of an account and an increase for all accounts.

The Accounts Receivable account has a zero opening balance, total debit postings of $1,700 and credit postings of $900. The balance of the account is

Accounts Receivable indicates amounts owed to us by our clients or customers.

Dollar signs are not used in formal financial reports.

Why is Revenue increased on the Credit side? (Explain as it pertains to the expanded accounting equation and its relationship to Owner's Equity.)

Which of the following errors would cause the trial balance to be out of balance?

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