Question 1

The business incurred an expense and paid it immediately.To record this:

Accepted Answer

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

Question 2

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

Accepted Answer

A) An asset would be debited and an expense debited. 
B) Expense 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 debited. 
B) Expense 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 3

What would be the effect on the accounts if the business received the telephone bill but did not pay it immediately?

Accepted Answer

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

Question 4

An account is said to have a debit balance if:

Accepted Answer

A) the footing of the debits exceeds the footing of the credits. 
B) there are more entries on the debit side than on the credit side. 
C) its normal balance is debit without regard to the amounts or number of entries on the debit side. 
D) the last entry of the accounting period was posted on the debit side. 
A) the footing of the debits exceeds the footing of the credits. 
B) there are more entries on the debit side than on the credit side. 
C) its normal balance is debit without regard to the amounts or number of entries on the debit side. 
D) the last entry of the accounting period was posted on the debit side.

Question 5

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

Accepted Answer

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

Question 6

The financial statements contain debit and credit columns.

Accepted Answer

A) True 
 B)False

Question 7

The owner of BobCats R Us paid his personal MasterCard bill using a company check.The correct entry to record the transaction is:

Accepted Answer

A) credit Cash;debit Capital. 
B) credit Cash;debit Supplies Expense. 
C) credit Cash;debit Withdrawals. 
D) credit Cash;debit Accounts Receivable. 
A) credit Cash;debit Capital. 
B) credit Cash;debit Supplies Expense. 
C) credit Cash;debit Withdrawals. 
D) credit Cash;debit Accounts Receivable.

Question 8

A transaction that involves more than one credit or more than one debit is called a compound entry.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is prepared first?

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 10

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

Accepted Answer

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

Question 11

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 12

The Accounts Receivable account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 13

A list of all the accounts from the ledger with their ending balances is called a:

Accepted Answer

A) normal balance. 
B) trial balance. 
C) chart of accounts. 
D) bank statement. 
A) normal balance. 
B) trial balance. 
C) chart of accounts. 
D) bank statement.

Question 14

The left column of a financial statement is often used to:

Accepted Answer

A) show debits. 
B) show credits. 
C) show totals. 
D) subtotal numbers. 
A) show debits. 
B) show credits. 
C) show totals. 
D) subtotal numbers.

Question 15

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.
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } \
\hline \text { Supplies } & & & \
\hline
\end{array}$$

Accepted Answer

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

Question 16

Identify whether a debit or credit would be correct for each of the following account changes.Use a Dr.(debit)or Cr.(credit)in the space provided.
________ 1.Increase Delivery Van
________ 2.Increase Accounts Receivable
________ 3.Increase Accounts Payable
________ 4.Increase Salaries Expense
________ 5.Increase Service Fees Earned
________ 6.Decrease Cash
________ 7.Increase S.McCrae,Capital
________ 8.Increase S.McCrae,Withdrawals
________ 9.Increase Rent Expense
________ 10.Increase Equipment

Accepted Answer

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

Question 17

An accounting device used to record increases and decreases in individual assets,liabilities,capital,revenue,expenses,and withdrawals is a(n):

Accepted Answer

A) chart of accounts. 
B) account. 
C) trial balance. 
D) footing. 
A) chart of accounts. 
B) account. 
C) trial balance. 
D) footing.

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.
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } \
\hline \text { Equipment } & & & \
\hline
\end{array}$$

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

Dennis,owner of Dennis's Golf Center,withdrew $900 in cash from the business.Record the transaction by:

Accepted Answer

A) debiting Dennis,Withdrawals,$900;crediting Cash,$900. 
B) debiting Accounts Receivable,$900;crediting Cash,$900. 
C) debiting Expense,$900;crediting Cash,$900. 
D) debiting Dennis,Withdrawals,$900;crediting Dennis,Capital,$900. 
A) debiting Dennis,Withdrawals,$900;crediting Cash,$900. 
B) debiting Accounts Receivable,$900;crediting Cash,$900. 
C) debiting Expense,$900;crediting Cash,$900. 
D) debiting Dennis,Withdrawals,$900;crediting Dennis,Capital,$900.

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

The business incurred an expense and paid it immediately.To record this:

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

What would be the effect on the accounts if the business received the telephone bill but did not pay it immediately?

An account is said to have a debit balance if:

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

The financial statements contain debit and credit columns.

The owner of BobCats R Us paid his personal MasterCard bill using a company check.The correct entry to record the transaction is:

A transaction that involves more than one credit or more than one debit is called a compound entry.

Which of the following is prepared first?

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

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

The Accounts Receivable account is increased by a debit.

A list of all the accounts from the ledger with their ending balances is called a:

The left column of a financial statement is often used to:

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 Supplies

An accounting device used to record increases and decreases in individual assets,liabilities,capital,revenue,expenses,and withdrawals is a(n):

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 Equipment

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

Dennis,owner of Dennis's Golf Center,withdrew $900 in cash from the business.Record the transaction by:

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