Question 1

A credit to a liability account was posted as a credit to an expense account.This error would cause:

Accepted Answer

A) assets to be overstated. 
B) liabilities to be overstated. 
C) expenses to be overstated. 
D) liabilities to be understated. 
A) assets to be overstated. 
B) liabilities to be overstated. 
C) expenses to be overstated. 
D) liabilities to be understated.

Question 2

Identify the normal balance for each of the following accounts by placing a Dr.(debit)or a Cr.(credit)in the space provided.
________ 1.Computer
________ 2.M.Bryant,Withdrawals
________ 3.M.Bryant,Capital
________ 4.Legal Fees Earned
________ 5.Cash
________ 6.Accounts Receivable
________ 7.Accounts Payable
________ 8.Rent Expense
________ 9.Office Equipment
________ 10.Supplies

Accepted Answer

1.Dr.
2.Dr.
3.Cr.
4.

Question 3

Number the following types of accounts (1-6)as they would appear on the Trial Balance.

Accepted Answer

The answer of Number the following types of accounts (1-6)as...

Question 4

Which of the following is NOT a financial statement?

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 5

Accounts Payable had a normal starting balance of $500.There were debit postings of $200 and credit postings of $100 during the month.The ending balance is:

Accepted Answer

A) $400 credit. 
B) $800 debit. 
C) $400 debit. 
D) $800 credit. 
A) $400 credit. 
B) $800 debit. 
C) $400 debit. 
D) $800 credit.

Question 6

One asset would be debited and another credited if:

Accepted Answer

A) the business provided services to a cash customer. 
B) the business paid a creditor. 
C) the business bought supplies paying cash. 
D) the business provided services to a credit customer. 
A) the business provided services to a cash customer. 
B) the business paid a creditor. 
C) the business bought supplies paying cash. 
D) the business provided services to a credit customer.

Question 7

Which of the following groups of accounts have a normal debit 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

Question 8

The following is a list of accounts and their balances for Benson Company for the month ended June 30,20xx.Prepare a trial balance in good form.
 $$\begin{array} { l r l r } 
\text { Cash } & \$ 1,870 & \text { Benson, Withdrawals } & \$ 500 \
\text { Accounts Payable } & 1,270 & \text { Accounts Receivable } & 1,100 \
\text { Office Equipment } & 900 & \text { Service Fees Earned } & 2,230 \
\text { Benson, Capital } & 1,500 & \text { Salaries Expense } & 630
\end{array}$$

Accepted Answer

The answer of The following is a list of accounts...

Question 9

A compound entry is when more than one transaction occurs.

Accepted Answer

A) True 
 B)False

Question 10

A compound entry is:

Accepted Answer

A) a transaction involving more than one debit and/or credit. 
B) used to prepare the trial balance. 
C) included on the balance sheet. 
D) found on the income statement. 
A) a transaction involving more than one debit and/or credit. 
B) used to prepare the trial balance. 
C) included on the balance sheet. 
D) found on the income statement.

Question 11

An account that would be increased by a credit is:

Accepted Answer

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

Question 12

Below is a chart of accounts.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.

Accepted Answer

The answer of Below is a chart of accounts.Following is...

Question 13

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 14

The following is a list of accounts and their balances for Myra's Company for the month ended May 31,20xx.Prepare a trial balance in good form.
 $$\begin{array} { l r l r } 
\text { Cash } & \$ 1,710 & \text { Myra, Withdrawals } & \$ 980 \
\text { Accounts Payable } & 1,000 & \text { Accounts Receivable } & 1,200 \
\text { Office Equipment } & 1,760 & \text { Service Fees Earned } & 1,835 \
\text { Myra, Capital } & 3,465 & \text { Rent Expense } & 650
\end{array}$$

Accepted Answer

The answer of The following is a list of accounts...

Question 15

Withdrawals increase on the credit side of the account.

Accepted Answer

A) True 
 B)False

Question 16

The business bought supplies with cash.To record this:

Accepted Answer

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

Question 17

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 $500 and the credit is entered at $5,000. 
D) None of these answers is correct. 
A) An entry is posted twice. 
B) An entry is not posted at all. 
C) A debit is entered as $500 and the credit is entered at $5,000. 
D) None of these answers is correct.

Question 18

The right side of any account is the:

Accepted Answer

A) debit side. 
B) credit side. 
C) ending balance. 
D) beginning balance. 
A) debit side. 
B) credit side. 
C) ending balance. 
D) beginning balance.

Question 19

A debit may signify a(n):

Accepted Answer

A) increase in asset accounts. 
B) increase in liability accounts. 
C) increase in the revenue account. 
D) decrease in expense accounts. 
A) increase in asset accounts. 
B) increase in liability accounts. 
C) increase in the revenue account. 
D) decrease in expense accounts.

Question 20

Debits must always equal credits in a transaction or journal entry.

Accepted Answer

A) True 
 B)False

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

A credit to a liability account was posted as a credit to an expense account.This error would cause:

Number the following types of accounts (1-6)as they would appear on the Trial Balance.

Which of the following is NOT a financial statement?

Accounts Payable had a normal starting balance of $500.There were debit postings of $200 and credit postings of $100 during the month.The ending balance is:

One asset would be debited and another credited if:

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

A compound entry is when more than one transaction occurs.

A compound entry is:

An account that would be increased by a credit is:

Below is a chart of accounts.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.

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

Withdrawals increase on the credit side of the account.

The business bought supplies with cash.To record this:

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

The right side of any account is the:

A debit may signify a(n):

Debits must always equal credits in a transaction or journal entry.

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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