Question 1

The purchase of a supply of markers for three months should be recorded as an increase in revenue and a decrease in cash.

Accepted Answer

A) True 
 B)False

Question 2

Kate made a $475 payment on her company van. She should credit Accounts Payable and debit the automobile account.

Accepted Answer

A) True 
 B)False

Question 3

The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called complex-entry accounting.

Accepted Answer

A) True 
 B)False

Question 4

The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called

Accepted Answer

A)  single-entry accounting. 
B)  compound-entry accounting. 
C)  multiple-entry accounting. 
D)  double-entry accounting. 
A)  single-entry accounting. 
B)  compound-entry accounting. 
C)  multiple-entry accounting. 
D)  double-entry accounting.

Question 5

At least two accounts are affected by every transaction.

Accepted Answer

A) True 
 B)False

Question 6

Elysa paid $135 for utilities for her office; this transaction increased Cash and the expense account.

Accepted Answer

A) True 
 B)False

Question 7

Match the terms with the definitions.
-A system in which each transaction has a dual effect on the accounting elements.

Accepted Answer

A) balance 
B) credit 
C) credit balance 
D) debit 
E) debit balance
F)double-entry accounting
G)footings
H)normal balance
I)T account
J)trial balance 
A) balance 
B) credit 
C) credit balance 
D) debit 
E) debit balance
F)double-entry accounting
G)footings
H)normal balance
I)T account
J)trial balance

Question 8

The difference between the footings of an account is called the balance.

Accepted Answer

A) True 
 B)False

Question 9

Revenues

Accepted Answer

A)  decrease liabilities. 
B)  decrease cash. 
C)  increase expenses. 
D)  increase owner's equity. 
A)  decrease liabilities. 
B)  decrease cash. 
C)  increase expenses. 
D)  increase owner's equity.

Question 10

An increase in an asset account may be offset by a(n)

Accepted Answer

A)  decrease in a liability account. 
B)  increase in an expense account. 
C)  increase in owner's equity. 
D)  decrease in owner's equity. 
A)  decrease in a liability account. 
B)  increase in an expense account. 
C)  increase in owner's equity. 
D)  decrease in owner's equity.

Question 11

If services for the month total $7,000 in cash and $1,500 on account, the revenue account increases $8,500.

Accepted Answer

A) True 
 B)False

Question 12

When debits equal credits for a transaction, the accounting equation is in balance.

Accepted Answer

A) True 
 B)False

Question 13

Services on account increase a revenue account and increase the cash account.

Accepted Answer

A) True 
 B)False

Question 14

Prepaid Insurance is an expense account.

Accepted Answer

A) True 
 B)False

Question 15

Asset accounts normally have debit balances.

Accepted Answer

A) True 
 B)False

Question 16

Owner's equity includes four types of accounts: Owner's Capital, Revenues, Expenses, and Owner's Drawing.

Accepted Answer

A) True 
 B)False

Question 17

The trial balance

Accepted Answer

A)  shows the current date. 
B)  shows only debit balances. 
C)  shows only credit balances. 
D)  lists only accounts that are used to prepare the balance sheet. 
A)  shows the current date. 
B)  shows only debit balances. 
C)  shows only credit balances. 
D)  lists only accounts that are used to prepare the balance sheet.

Question 18

An example of an expense is

Accepted Answer

A)  prepaid insurance. 
B)  advertising. 
C)  accounts payable. 
D)  cash. 
A)  prepaid insurance. 
B)  advertising. 
C)  accounts payable. 
D)  cash.

Question 19

The standard T account includes all of the following EXCEPT

Accepted Answer

A)  a credit side. 
B)  a debit side. 
C)  a title. 
D)  the current date. 
A)  a credit side. 
B)  a debit side. 
C)  a title. 
D)  the current date.

The purchase of a supply of markers for three months should be recorded as an increase in revenue and a decrease in cash.

Kate made a $475 payment on her company van. She should credit Accounts Payable and debit the automobile account.

The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called complex-entry accounting.

The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called

At least two accounts are affected by every transaction.

Elysa paid $135 for utilities for her office; this transaction increased Cash and the expense account.

Match the terms with the definitions. -A system in which each transaction has a dual effect on the accounting elements.

The difference between the footings of an account is called the balance.

Revenues

An increase in an asset account may be offset by a(n)

If services for the month total $7,000 in cash and $1,500 on account, the revenue account increases $8,500.

When debits equal credits for a transaction, the accounting equation is in balance.

Services on account increase a revenue account and increase the cash account.

Prepaid Insurance is an expense account.

Asset accounts normally have debit balances.

Owner's equity includes four types of accounts: Owner's Capital, Revenues, Expenses, and Owner's Drawing.

The trial balance

An example of an expense is

The standard T account includes all of the following EXCEPT

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for a Professional Service Business: The Combination Journal

Filters

Exam 3: The Double-Entry Framework

The purchase of a supply of markers for three months should be recorded as an increase in revenue and a decrease in cash.

Kate made a $475 payment on her company van. She should credit Accounts Payable and debit the automobile account.

The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called complex-entry accounting.

The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called

At least two accounts are affected by every transaction.

Elysa paid $135 for utilities for her office; this transaction increased Cash and the expense account.

Match the terms with the definitions. -A system in which each transaction has a dual effect on the accounting elements.

The difference between the footings of an account is called the balance.

Revenues

An increase in an asset account may be offset by a(n)

If services for the month total $7,000 in cash and $1,500 on account, the revenue account increases $8,500.

When debits equal credits for a transaction, the accounting equation is in balance.

Services on account increase a revenue account and increase the cash account.

Prepaid Insurance is an expense account.

Asset accounts normally have debit balances.

Owner's equity includes four types of accounts: Owner's Capital, Revenues, Expenses, and Owner's Drawing.

The trial balance

An example of an expense is

The standard T account includes all of the following EXCEPT

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for a Professional Service Business: The Combination Journal

Filters