Question 1

Equipment is an example of a Capital account.

Accepted Answer

A) True 
 B)False

Question 2

The following transactions occurred during June for Center City Cycle Shop. Record the transactions below in the T accounts. Place the letter of the transaction next to the entry. Foot and calculate the ending balances of the T accounts where appropriate.
a. invested $6500 in the bike service from his personal savings account.
b. Bought office equipment for cash, $900.
c. Performed bike service for a customer on account, $1,000.
d. Company cell phone bill received, but not paid, $80.
e. Collected $500 from customer in transaction c.
f. withdrew $300 for personal use.

Accepted Answer

The answer of The following transactions occurred during June for...

Question 3

Net income or net loss for a period is calculated by the following formula:

Accepted Answer

A)  total liabilities - total revenue. 
B)  total revenues + total expenses - total withdrawals - assets. 
C)  total revenues - total expenses. 
D)  total revenues - total expenses + capital. 
A)  total liabilities - total revenue. 
B)  total revenues + total expenses - total withdrawals - assets. 
C)  total revenues - total expenses. 
D)  total revenues - total expenses + capital.

Question 4

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 5

Determine the beginning owner's equity of a business having beginning assets of $9,000 and ending liabilities of $5,000. During the year the liabilities decreased by $1,000.
$ ________

Accepted Answer

$3,000 [$9

Question 6

The entry to record Tom's payment of a home telephone bill is:

Accepted Answer

A)  debit Accounts Payable; credit Telephone Expense. 
B)  debit Tom, Withdrawals; credit Cash. 
C)  debit Telephone Expense; credit Cash. 
D)  debit Tom, Withdrawals; credit Accounts Payable. 
A)  debit Accounts Payable; credit Telephone Expense. 
B)  debit Tom, Withdrawals; credit Cash. 
C)  debit Telephone Expense; credit Cash. 
D)  debit Tom, Withdrawals; credit Accounts Payable.

Question 7

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.

Accepted Answer

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

Question 8

An account that would be increased by a credit is:

Accepted Answer

A)  Cash. 
B)  Prepaid Expense. 
C)  Utilities Expense. 
D)  Unearned Revenue. 
A)  Cash. 
B)  Prepaid Expense. 
C)  Utilities Expense. 
D)  Unearned Revenue.

Question 9

The financial statements contain debit and credit columns.

Accepted Answer

A) True 
 B)False

Question 10

The income statement is a financial statement.

Accepted Answer

A) True 
 B)False

Question 11

A ledger:

Accepted Answer

A)  includes all company accounts and their related balances. 
B)  can replace the financial statements. 
C)  is the same as a chart of accounts. 
D)  is known as a worksheet. 
A)  includes all company accounts and their related balances. 
B)  can replace the financial statements. 
C)  is the same as a chart of accounts. 
D)  is known as a worksheet.

Question 12

Three accounts are affected in every transaction.

Accepted Answer

A) True 
 B)False

Question 13

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:
Asset - A Revenue - R None of the above - N Liability - L Expense - E
b. In the second column, indicate the normal balance of the account by inserting a Dr. or Cr.

Accepted Answer

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

Question 14

When recording transactions in two or more accounts and the totals of the debits and credits are equal, it is called:

Accepted Answer

A)  debiting. 
B)  crediting. 
C)  balancing. 
D)  double-entry bookkeeping. 
A)  debiting. 
B)  crediting. 
C)  balancing. 
D)  double-entry bookkeeping.

Question 15

A compound entry is when more than one transaction occurs.

Accepted Answer

A) True 
 B)False

Question 16

Which type of account would NOT be reported on the income statement?

Accepted Answer

A)  Revenue 
B)  Expenses 
C)  Liabilities 
D)  None of the above answers are correct. 
A)  Revenue 
B)  Expenses 
C)  Liabilities 
D)  None of the above answers are correct.

Question 17

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 18

Withdrawals increase on the credit side of the account.

Accepted Answer

A) True 
 B)False

Question 19

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 20

The Accounts Payable account has total credit postings of $2,500 and debit postings of $1,500. The balance of the account is:

Accepted Answer

A)  $1,000 debit. 
B)  $1,000 credit. 
C)  $4,000 credit. 
D)  $4,000 debit. 
A)  $1,000 debit. 
B)  $1,000 credit. 
C)  $4,000 credit. 
D)  $4,000 debit.

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

Equipment is an example of a Capital account.

Net income or net loss for a period is calculated by the following formula:

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. -

Determine the beginning owner's equity of a business having beginning assets of $9,000 and ending liabilities of $5,000. During the year the liabilities decreased by $1,000. $ ________

The entry to record Tom's payment of a home telephone bill is:

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.

An account that would be increased by a credit is:

The financial statements contain debit and credit columns.

The income statement is a financial statement.

A ledger:

Three accounts are affected in every transaction.

When recording transactions in two or more accounts and the totals of the debits and credits are equal, it is called:

A compound entry is when more than one transaction occurs.

Which type of account would NOT be reported on the income statement?

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

Withdrawals increase on the credit side of the account.

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. -

The Accounts Payable account has total credit postings of $2,500 and debit postings of $1,500. The balance of the account is:

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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