Question 1

What would be the effect on the accounts if the business purchased equipment on account?

Accepted Answer

A)  An asset would be debited and an expense debited. 
B)  Expense would be debited and Liability credited. 
C)  An asset would be debited and Liability debited. 
D)  An asset would be debited and a Liability credited. 
A)  An asset would be debited and an expense debited. 
B)  Expense would be debited and Liability credited. 
C)  An asset would be debited and Liability debited. 
D)  An asset would be debited and a Liability credited.

Question 2

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 3

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.
-

Accepted Answer

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

Question 4

Office Supplies had a normal starting balance of $95. There were debit postings of $120 and credit postings of $60 during the month. The ending balance of the account is:

Accepted Answer

A)  $85 debit. 
B)  $85 credit. 
C)  $155 debit. 
D)  $155 credit. 
A)  $85 debit. 
B)  $85 credit. 
C)  $155 debit. 
D)  $155 credit.

Question 5

When the owner invests personal equipment in the business, cash is decreased.

Accepted Answer

A) True 
 B)False

Question 6

Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?

Accepted Answer

A)  $3,250 debit, $3,250 credit 
B)  $1,900 debit, $1,900 credit 
C)  $4,500 debit, $4,500 credit 
D)  $2,250 debit, $2,250 credit 
A)  $3,250 debit, $3,250 credit 
B)  $1,900 debit, $1,900 credit 
C)  $4,500 debit, $4,500 credit 
D)  $2,250 debit, $2,250 credit

Question 7

An asset would be debited and another asset credited if:

Accepted Answer

A)  the business bought supplies for cash. 
B)  the business incurred an expense and paid it. 
C)  the business bought equipment on account. 
D)  None of these is correct. 
A)  the business bought supplies for cash. 
B)  the business incurred an expense and paid it. 
C)  the business bought equipment on account. 
D)  None of these is correct.

Question 8

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 9

Which of the statements of the rules of debit and credit is true?

Accepted Answer

A)  Decrease Accounts Receivable with a credit and the normal balance is a credit. 
B)  Increase Accounts Payable with a credit and the normal balance is a credit. 
C)  Increase Revenue with a debit and the normal balance is a debit. 
D)  Decrease Cash with a debit and the normal balance is a debit. 
A)  Decrease Accounts Receivable with a credit and the normal balance is a credit. 
B)  Increase Accounts Payable with a credit and the normal balance is a credit. 
C)  Increase Revenue with a debit and the normal balance is a debit. 
D)  Decrease Cash with a debit and the normal balance is a debit.

Question 10

The beginning balance in Cash was $5,000. Additional cash of $2,600 was received. Checks were written totaling $3,300. The ending balance in cash is:

Accepted Answer

A)  $2,400. 
B)  $7,600. 
C)  $5,700. 
D)  $4,300. 
A)  $2,400. 
B)  $7,600. 
C)  $5,700. 
D)  $4,300.

Question 11

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

Accepted Answer

A)  Withdrawals 
B)  Assets 
C)  Expenses 
D)  None of the above 
A)  Withdrawals 
B)  Assets 
C)  Expenses 
D)  None of the above

Question 12

Which of the following is prepared last?

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 13

What is X-cel Company's net income or net loss if it had Revenue of $2,200, Salary Expense of $700, Utility Expense of $350, and Withdrawals of $3,000 during October?

Accepted Answer

A)  $1,850 net income 
B)  $1,150 net loss 
C)  $1,150 net income 
D)  $1,850 net loss 
A)  $1,850 net income 
B)  $1,150 net loss 
C)  $1,150 net income 
D)  $1,850 net loss

Question 14

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 15

Number the following types of accounts (1-6) as they would appear on the Trial Balance.
________ Assets
________ Capital
________ Revenue
________ Liabilities
________ Withdrawals
________ Expenses

Accepted Answer

1 Assets
3 Capital
5

Question 16

The owner of BobCats R Us paid his personal Visa Card 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 Payable. 
A)  credit Cash; debit Capital. 
B)  credit Cash; debit Supplies Expense. 
C)  credit Cash; debit Withdrawals. 
D)  credit Cash; debit Accounts Payable.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Cash is credited when the business makes a payment for supplies.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  Withdrawals 
B)  Assets 
C)  Expenses 
D)  All of these answers are correct. 
A)  Withdrawals 
B)  Assets 
C)  Expenses 
D)  All of these answers are correct.

Question 20

Accounts Payable indicates monies owed to us by our clients or customers.

Accepted Answer

A) True 
 B)False

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

What would be the effect on the accounts if the business purchased equipment on account?

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

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. -

Office Supplies had a normal starting balance of $95. There were debit postings of $120 and credit postings of $60 during the month. The ending balance of the account is:

When the owner invests personal equipment in the business, cash is decreased.

Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?

An asset would be debited and another asset credited if:

The right side of any account is the:

Which of the statements of the rules of debit and credit is true?

The beginning balance in Cash was $5,000. Additional cash of $2,600 was received. Checks were written totaling $3,300. The ending balance in cash is:

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

Which of the following is prepared last?

What is X-cel Company's net income or net loss if it had Revenue of $2,200, Salary Expense of $700, Utility Expense of $350, and Withdrawals of $3,000 during October?

An account is said to have a debit balance if:

Number the following types of accounts (1-6) as they would appear on the Trial Balance. ________ Assets ________ Capital ________ Revenue ________ Liabilities ________ Withdrawals ________ Expenses

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

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

Cash is credited when the business makes a payment for supplies.

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

Accounts Payable indicates monies owed to us by our clients or customers.

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

Number the following types of accounts (1-6) as they would appear on the Trial Balance. Assets Capital Revenue Liabilities Withdrawals Expenses