Question 1

The credit side is always the left side of the account.

Accepted Answer

A) True 
 B)False

Question 2

A formal account that has columns for date,explanation,posting reference,debit,and credit is called the:

Accepted Answer

A) T account. 
B) standard account form. 
C) ledger. 
D) chart of accounts. 
A) T account. 
B) standard account form. 
C) ledger. 
D) chart of accounts.

Question 3

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

Accepted Answer

A) liabilities to be overstated. 
B) expenses to be overstated. 
C) assets to be understated. 
D) Both B and C are correct. 
A) liabilities to be overstated. 
B) expenses to be overstated. 
C) assets to be understated. 
D) Both B and C are correct.

Question 4

Withdrawals and expenses are reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 5

The Accounts Receivable account has total debit postings of $2,000 and credit postings of $1,200.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 6

What would be the effect on the 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 7

The side that increases the account balance,by the rules of debit and credit,is said to be the:

Accepted Answer

A) debit side. 
B) credit side. 
C) normal balance. 
D) None of these answers is correct. 
A) debit side. 
B) credit side. 
C) normal balance. 
D) None of these answers is correct.

Question 8

Selected accounts from the ledger of Thomas Company appear below.For each account,indicate the following:
a.In the first column at right,indicate the type of each account using the following abbreviations:
 $$\text { Asset - A } \quad \text { Revenue } - \mathrm { R } \quad \text { None of the above } - \mathrm { N } \text { Liability - } \mathrm { L } \quad \text { Expense } - \mathrm { E }$$ 
b.In the second column,indicate the normal balance of the account by inserting a Dr.or Cr.
 $$\begin{array} { | l | c | c | } 
\hline \text { Account } & \begin{array} { c } 
\text { Type of } \
\text { Account }
\end{array} & \text { Normal Balance } \
\hline \text { 1. Office Supplies } & - & \
\hline \text { 2. Accounts Receivable } & - & \
\hline \text { 3. Fees Earned } & - & \
\hline \text { 4. Thomas, Withdrawals } & - & \
\hline \text { 5. Accounts Payable } & - & \
\hline \text { 6. Salaries Expense } & - & \
\hline \text { 7. Thomas, Capital } & - & \
\hline \text { 8. Accounts Receivable } & - & \
\hline \text { 9. Equipment } & - & \
\hline \text { 10. Telephone Expense } & - & \
\hline
\end{array}$$

Accepted Answer

The answer of Selected accounts from the ledger of Thomas...

Question 9

A credit to an asset account was posted as a credit 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 10

Given the following list of accounts with normal balances,what are the trial balance totals of the debits and credits?
$$\begin{array} { | l | r | } 
\hline \text { Cash } & \$ 1,000 \
\hline \text { Equipment } & 500 \
\hline \text { Accounts Payable } & 350 \
\hline \text { Capital } & 900 \
\hline \text { Service Fees Earned } & 1,000 \
\hline \text { Salaries Expense } & 750 \
\hline
\end{array}$$

Accepted Answer

A) $3,250 debit,$3,250 credit 
B) $1,125 debit,$1,125 credit 
C) $4,500 debit,$4,500 credit 
D) $2,250 debit,$2,250 credit 
A) $3,250 debit,$3,250 credit 
B) $1,125 debit,$1,125 credit 
C) $4,500 debit,$4,500 credit 
D) $2,250 debit,$2,250 credit

Question 11

Equipment is an example of a capital account.

Accepted Answer

A) True 
 B)False

Question 12

Determine the ending owner's equity of a business having a beginning owner's equity of $8,500,additional investments of $600,withdrawals of $1,000,and net income of $1,200.
$ ________

Accepted Answer

$9,300 [$8

Question 13

After deciding which accounts are affected,the next step in analyzing a transaction is to determine to which categories the accounts belong.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following types of accounts has a normal credit balance?

Accepted Answer

A) Withdrawals 
B) Assets 
C) Expenses 
D) Revenues 
A) Withdrawals 
B) Assets 
C) Expenses 
D) Revenues

Question 15

Two accounts are affected in every transaction.

Accepted Answer

A) True 
 B)False

Question 16

The debit side is always the left side of the account.

Accepted Answer

A) True 
 B)False

Question 17

Accounts Payable appears on the income statement.

Accepted Answer

A) True 
 B)False

Question 18

Determine the beginning owner's equity of a business having an ending owner's equity of $3,500,additional investments of $600,withdrawals of $500,and net loss of $750.
$ ________

Accepted Answer

$4,150 [$3

Question 19

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

Question 20

Given the following list of accounts with normal balances,what are the trial balance totals of the debits and credits?
$$\begin{array} { | l | r | } 
\hline \text { Cash } & \$ 1,100 \
\hline \text { Accounts Receivable } & 800 \
\hline \text { Capital } & 1,900 \
\hline \text { Accounts Payable } & 500 \
\hline \text { Service Fees Earned } & 1,000 \
\hline \text { Rent Expense } & 1,500 \
\hline
\end{array}$$

Accepted Answer

A) $3400 debit,$3400 credit 
B) $3,900 debit,$3,900 credit 
C) $2,000 debit,$2,000 credit 
D) $1,200 debit,$1,200 credit 
A) $3400 debit,$3400 credit 
B) $3,900 debit,$3,900 credit 
C) $2,000 debit,$2,000 credit 
D) $1,200 debit,$1,200 credit

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

The credit side is always the left side of the account.

A formal account that has columns for date,explanation,posting reference,debit,and credit is called the:

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

Withdrawals and expenses are reported on the income statement.

The Accounts Receivable account has total debit postings of $2,000 and credit postings of $1,200.The balance of the account is:

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

The side that increases the account balance,by the rules of debit and credit,is said to be the:

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

Given the following list of accounts with normal balances,what are the trial balance totals of the debits and credits? Cash \ 1,000 Equipment 500 Accounts Payable 350 Capital 900 Service Fees Earned 1,000 Salaries Expense 750

Equipment is an example of a capital account.

Determine the ending owner's equity of a business having a beginning owner's equity of $8,500,additional investments of $600,withdrawals of $1,000,and net income of $1,200. $ ________

After deciding which accounts are affected,the next step in analyzing a transaction is to determine to which categories the accounts belong.

Which of the following types of accounts has a normal credit balance?

Two accounts are affected in every transaction.

The debit side is always the left side of the account.

Accounts Payable appears on the income statement.

Determine the beginning owner's equity of a business having an ending owner's equity of $3,500,additional investments of $600,withdrawals of $500,and net loss of $750. $ ________

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

Given the following list of accounts with normal balances,what are the trial balance totals of the debits and credits? Cash \ 1,100 Accounts Receivable 800 Capital 1,900 Accounts Payable 500 Service Fees Earned 1,000 Rent Expense 1,500

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

Filters