Question 1

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

Accepted Answer

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

Question 2

When recording transactions in two or more accounts and the totals of the debits and credits are equal,it is called:

Accepted Answer

A) debiting. 
B) crediting. 
C) balancing. 
D) double-entry bookkeeping. 
A) debiting. 
B) crediting. 
C) balancing. 
D) double-entry bookkeeping. D

Question 3

Which type of account would NOT be reported on the balance sheet?

Accepted Answer

A) Expense 
B) Cash 
C) Accounts Payable 
D) Equipment 
A) Expense 
B) Cash 
C) Accounts Payable 
D) Equipment A

Question 4

The Salaries Payable account has total debit postings of $800 and credit postings of $1,500.The ending balance of the account is:

Accepted Answer

A) $2,300 debit. 
B) $700 credit. 
C) $2,300 credit. 
D) $700 debit. 
A) $2,300 debit. 
B) $700 credit. 
C) $2,300 credit. 
D) $700 debit.

Question 5

A debit to an asset account was posted as a debit to a liability account.This error would cause:

Accepted Answer

A) assets to be understated. 
B) liabilities to be overstated. 
C) capital to be understated. 
D) None of the above is correct. 
A) assets to be understated. 
B) liabilities to be overstated. 
C) capital to be understated. 
D) None of the above is correct.

Question 6

The beginning balance in the Computers account was $3,000.The company purchased an additional $1000 worth of computers.The ending balance in the account is:

Accepted Answer

A) debit of $2,000. 
B) credit of $3,000. 
C) debit of $4,000. 
D) credit of $2,000. 
A) debit of $2,000. 
B) credit of $3,000. 
C) debit of $4,000. 
D) credit of $2,000.

Question 7

A debit to an expense account was posted as a debit to a revenue account.This error would cause:

Accepted Answer

A) assets to be overstated. 
B) liabilities to be overstated. 
C) revenue to be understated. 
D) None of the above is correct. 
A) assets to be overstated. 
B) liabilities to be overstated. 
C) revenue to be understated. 
D) None of the above is correct.

Question 8

The debit side of all accounts decreases the balance and the credit side increases all accounts.

Accepted Answer

A) True 
 B)False

Question 9

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, and in Column 3 the financial statement that the account appears upon.
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } \
\hline \text { Cleaning Expense } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 10

Wages Expense appears on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

The income statement is a financial statement.

Accepted Answer

A) True 
 B)False

Question 12

The entry to record Tom's payment of a home telephone bill is:

Accepted Answer

A) debit Accounts Payable;credit Telephone Expense. 
B) debit Tom,Withdrawals;credit Cash. 
C) debit Telephone Expense;credit Cash. 
D) debit Tom,Withdrawals;credit Accounts Payable. 
A) debit Accounts Payable;credit Telephone Expense. 
B) debit Tom,Withdrawals;credit Cash. 
C) debit Telephone Expense;credit Cash. 
D) debit Tom,Withdrawals;credit Accounts Payable.

Question 13

Which type of account would NOT be reported on the income statement?

Accepted Answer

A) Revenue 
B) Expenses 
C) Liabilities 
D) None of these answers is correct. 
A) Revenue 
B) Expenses 
C) Liabilities 
D) None of these answers is correct.

Question 14

On which financial statement would you find the ending balance in the Capital account?

Accepted Answer

A) Income Statement 
B) Balance Sheet 
C) Statement of Owner's Equity 
D) Both B and C are correct. 
A) Income Statement 
B) Balance Sheet 
C) Statement of Owner's Equity 
D) Both B and C are correct.

Question 15

The Accounts Payable account is:

Accepted Answer

A) a capital,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 capital,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 16

What is a proper entry to show the owner making an investment in the company?

Accepted Answer

A) A credit to Cash and a debit to Capital 
B) A debit to Cash and a credit to Capital 
C) A debit to Cash and a credit to Revenue 
D) A credit to Cash and a debit to Revenue 
A) A credit to Cash and a debit to Capital 
B) A debit to Cash and a credit to Capital 
C) A debit to Cash and a credit to Revenue 
D) A credit to Cash and a debit to Revenue

Question 17

Explain the difference between expenses and withdrawals.

Accepted Answer

A withdrawal is used for recording the o

Question 18

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, and in Column 3 the financial statement that the account appears upon.
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } \
\hline \text { Postage Expense } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 19

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

Accepted Answer

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

Question 20

Which of the following groups of accounts have a normal credit balance?

Accepted Answer

A) Revenue,liabilities,and capital 
B) Assets,capital,and withdrawals 
C) Liabilities,expenses,and assets 
D) Assets,expenses,and withdrawals 
A) Revenue,liabilities,and capital 
B) Assets,capital,and withdrawals 
C) Liabilities,expenses,and assets 
D) Assets,expenses,and withdrawals

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

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

When recording transactions in two or more accounts and the totals of the debits and credits are equal,it is called:

Which type of account would NOT be reported on the balance sheet?

The Salaries Payable account has total debit postings of $800 and credit postings of $1,500.The ending balance of the account is:

A debit to an asset account was posted as a debit to a liability account.This error would cause:

The beginning balance in the Computers account was $3,000.The company purchased an additional $1000 worth of computers.The ending balance in the account is:

A debit to an expense account was posted as a debit to a revenue account.This error would cause:

The debit side of all accounts decreases the balance and the credit side increases all accounts.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, and in Column 3 the financial statement that the account appears upon. - Column 1 Column 2 Column 3 Cleaning Expense

Wages Expense appears on the balance sheet.

The income statement is a financial statement.

The entry to record Tom's payment of a home telephone bill is:

Which type of account would NOT be reported on the income statement?

On which financial statement would you find the ending balance in the Capital account?

The Accounts Payable account is:

What is a proper entry to show the owner making an investment in the company?

Explain the difference between expenses and withdrawals.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, and in Column 3 the financial statement that the account appears upon. - Column 1 Column 2 Column 3 Postage Expense

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

Which of the following groups of accounts have a normal credit balance?

Accounting Concepts and Procedures

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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