Question 1

Which of the following accounts would be increased by a debit entry?

Accepted Answer

A)  Accounts receivable 
B)  Owners' equity 
C)  Accounts payable 
D)  Sales 
A)  Accounts receivable 
B)  Owners' equity 
C)  Accounts payable 
D)  Sales A

Question 2

If an entity paid $200 for two months' rent in advance on 1 June and recorded it all as rent expense on that date, which of the following would be the necessary adjusting entry at 30 June?

Accepted Answer

A)  Debit rent expense $100 and credit prepaid rent $100 
B)  Debit prepaid rent $100 and credit rent expense $100 
C)  Debit rent expense $200 and credit prepaid rent $200 
D)  Debit prepaid rent $200 and credit rent expense $200 
A)  Debit rent expense $100 and credit prepaid rent $100 
B)  Debit prepaid rent $100 and credit rent expense $100 
C)  Debit rent expense $200 and credit prepaid rent $200 
D)  Debit prepaid rent $200 and credit rent expense $200 B

Question 3

Prepare general journal entries for the following independent events.

Accepted Answer

The answer of Prepare general journal entries for the following...

Question 4

If an entity paid $200 for two months' rent in advance on 1 June and recorded it all as prepaid rent on that date, which of the following would be the necessary adjusting entry at 30 June?

Accepted Answer

A)  Debit rent expense $100 and credit prepaid rent $100 
B)  Debit prepaid rent $100 and credit rent expense $100 
C)  Debit rent expense $200 and credit prepaid rent $200 
D)  Debit prepaid rent $200 and credit rent expense $200 
A)  Debit rent expense $100 and credit prepaid rent $100 
B)  Debit prepaid rent $100 and credit rent expense $100 
C)  Debit rent expense $200 and credit prepaid rent $200 
D)  Debit prepaid rent $200 and credit rent expense $200

Question 5

Which of the following does not normally have a credit balance?

Accepted Answer

A)  Asset 
B)  Liability 
C)  Equity 
D)  Revenue 
A)  Asset 
B)  Liability 
C)  Equity 
D)  Revenue

Question 6

The following transactions relate to Murali Traders for the year ended 30 June - the first year of operation.

Accepted Answer

The answer of The following transactions relate to Murali Traders...

Question 7

XYZ receives $1000 in June for rent from a client for the month of July. How should this be recorded by XYZ assuming a balance date of 30 June?

Accepted Answer

A)  Debit cash $1000 and credit accounts receivable $1000 
B)  Debit cash $1000 and credit unearned revenue $1000 
C)  Debit unearned revenue $1000 and credit cash $1000 
D)  Debit cash $1000 and credit prepaid rent $1000 
A)  Debit cash $1000 and credit accounts receivable $1000 
B)  Debit cash $1000 and credit unearned revenue $1000 
C)  Debit unearned revenue $1000 and credit cash $1000 
D)  Debit cash $1000 and credit prepaid rent $1000

Question 8

A trial balance is prepared to check on the arithmetical accuracy of the ledger.

Accepted Answer

A) True 
 B)False

Question 9

An increase in assets and an increase in liabilities is the same as saying assets have been debited and liabilities have been credited.

Accepted Answer

A) True 
 B)False

Question 10

An accounting journal:

Accepted Answer

A)  is an original book of entry in accounting records. 
B)  records transactions on a chronological basis. 
C)  provides the information for recording in the ledger. 
D)  all of the above. 
A)  is an original book of entry in accounting records. 
B)  records transactions on a chronological basis. 
C)  provides the information for recording in the ledger. 
D)  all of the above.

Question 11

The worksheet approach and the T account approach to recording transactions are not really comparable, as the worksheet approach uses increases and decreases whereas the T account approach uses debits and credits.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements about double-entry bookkeeping is true?

Accepted Answer

A)  The double-entry principle is referred to as accrual accounting. 
B)  For each transaction or economic event the total amount debited must equal the total amount credited. 
C)  If one account is increased, then another account must be decreased. 
D)  The total number of accounts debited must equal the total number of accounts credited. 
A)  The double-entry principle is referred to as accrual accounting. 
B)  For each transaction or economic event the total amount debited must equal the total amount credited. 
C)  If one account is increased, then another account must be decreased. 
D)  The total number of accounts debited must equal the total number of accounts credited.

Question 13

When using an extended trial balance approach to recording end-of-period adjustments, there is a risk of errors and omissions as this approach will only result in the recording of one side of the transaction.

Accepted Answer

A) True 
 B)False

Question 14

Decreases in assets are credited, and increases in liabilities are debited.

Accepted Answer

A) True 
 B)False

Question 15

The recording of transactions in the ledger always involves:

Accepted Answer

A)  same number of debit and credit entries. 
B)  same dollar amounts of debits and credits. 
C)  the original recording of the transaction. 
D)  plenty of work for accountants. 
A)  same number of debit and credit entries. 
B)  same dollar amounts of debits and credits. 
C)  the original recording of the transaction. 
D)  plenty of work for accountants.

Question 16

A credit entry is used to record increases to:

Accepted Answer

A)  accounts receivable. 
B)  accounts payable. 
C)  wages expense. 
D)  cash. 
A)  accounts receivable. 
B)  accounts payable. 
C)  wages expense. 
D)  cash.

Question 17

Increases in assets involve debits and increases to equity and liabilities involve credits under a ledger-based approach to recording transactions.

Accepted Answer

A) True 
 B)False

Question 18

As used in accounting, what do the terms 'debit' and 'credit' mean?

Accepted Answer

A)  The bad and good things, respectively, that happen to a business 
B)  Increases and decreases, respectively 
C)  Left and right sides, respectively, of a T ledger account 
D)  First and second, respectively 
A)  The bad and good things, respectively, that happen to a business 
B)  Increases and decreases, respectively 
C)  Left and right sides, respectively, of a T ledger account 
D)  First and second, respectively

Question 19

The ledger accounts for accumulated depreciation and allowance for doubtful debts:

Accepted Answer

A)  would normally hold credit balances. 
B)  would normally hold debit balances. 
C)  represent expenses. 
D)  represent liabilities. 
A)  would normally hold credit balances. 
B)  would normally hold debit balances. 
C)  represent expenses. 
D)  represent liabilities.

Question 20

The recording of transactions in the worksheet and ledger both revolve around the principle of duality and the accounting equation.

Accepted Answer

A) True 
 B)False

Which of the following accounts would be increased by a debit entry?

If an entity paid $200 for two months' rent in advance on 1 June and recorded it all as rent expense on that date, which of the following would be the necessary adjusting entry at 30 June?

Prepare general journal entries for the following independent events.

If an entity paid $200 for two months' rent in advance on 1 June and recorded it all as prepaid rent on that date, which of the following would be the necessary adjusting entry at 30 June?

Which of the following does not normally have a credit balance?

The following transactions relate to Murali Traders for the year ended 30 June - the first year of operation.

XYZ receives $1000 in June for rent from a client for the month of July. How should this be recorded by XYZ assuming a balance date of 30 June?

A trial balance is prepared to check on the arithmetical accuracy of the ledger.

An increase in assets and an increase in liabilities is the same as saying assets have been debited and liabilities have been credited.

An accounting journal:

The worksheet approach and the T account approach to recording transactions are not really comparable, as the worksheet approach uses increases and decreases whereas the T account approach uses debits and credits.

Which of the following statements about double-entry bookkeeping is true?

When using an extended trial balance approach to recording end-of-period adjustments, there is a risk of errors and omissions as this approach will only result in the recording of one side of the transaction.

Decreases in assets are credited, and increases in liabilities are debited.

The recording of transactions in the ledger always involves:

A credit entry is used to record increases to:

Increases in assets involve debits and increases to equity and liabilities involve credits under a ledger-based approach to recording transactions.

As used in accounting, what do the terms 'debit' and 'credit' mean?

The ledger accounts for accumulated depreciation and allowance for doubtful debts:

The recording of transactions in the worksheet and ledger both revolve around the principle of duality and the accounting equation.

Introduction to Accounting

Types of Organisations and the Financial Reporting Framework

Ethics and Corporate Governance

Wealth and the Measurement of Profit

Presentation of Financial Position and the Worksheet

Presentation of Financial Performance and the Worksheet

Presentation of Cash Flows

Accounting for Selected Assets

Liabilities and Sources of Financing

Financial Statement Analysis

An Introduction to Management Accounting: a Strategic Perspective

Performance Measurement and the Balanced Scorecard

Costs and Cost Behaviour

Budgets

Cost-Volume-Profit Analysis

Accounting for Decision Making: With and Without Resource Constraints

Capital Investment Decisions

Filters

Exam 11: Worksheet to Debits and Credits

Which of the following accounts would be increased by a debit entry?

If an entity paid $200 for two months' rent in advance on 1 June and recorded it all as rent expense on that date, which of the following would be the necessary adjusting entry at 30 June?

Prepare general journal entries for the following independent events.

If an entity paid $200 for two months' rent in advance on 1 June and recorded it all as prepaid rent on that date, which of the following would be the necessary adjusting entry at 30 June?

Which of the following does not normally have a credit balance?

The following transactions relate to Murali Traders for the year ended 30 June - the first year of operation.

XYZ receives $1000 in June for rent from a client for the month of July. How should this be recorded by XYZ assuming a balance date of 30 June?

A trial balance is prepared to check on the arithmetical accuracy of the ledger.

An increase in assets and an increase in liabilities is the same as saying assets have been debited and liabilities have been credited.

An accounting journal:

The worksheet approach and the T account approach to recording transactions are not really comparable, as the worksheet approach uses increases and decreases whereas the T account approach uses debits and credits.

Which of the following statements about double-entry bookkeeping is true?

When using an extended trial balance approach to recording end-of-period adjustments, there is a risk of errors and omissions as this approach will only result in the recording of one side of the transaction.

Decreases in assets are credited, and increases in liabilities are debited.

The recording of transactions in the ledger always involves:

A credit entry is used to record increases to:

Increases in assets involve debits and increases to equity and liabilities involve credits under a ledger-based approach to recording transactions.

As used in accounting, what do the terms 'debit' and 'credit' mean?

The ledger accounts for accumulated depreciation and allowance for doubtful debts:

The recording of transactions in the worksheet and ledger both revolve around the principle of duality and the accounting equation.

Introduction to Accounting

Types of Organisations and the Financial Reporting Framework

Ethics and Corporate Governance

Wealth and the Measurement of Profit

Presentation of Financial Position and the Worksheet

Presentation of Financial Performance and the Worksheet

Presentation of Cash Flows

Accounting for Selected Assets

Liabilities and Sources of Financing

Financial Statement Analysis

An Introduction to Management Accounting: a Strategic Perspective

Performance Measurement and the Balanced Scorecard

Costs and Cost Behaviour

Budgets

Cost-Volume-Profit Analysis

Accounting for Decision Making: With and Without Resource Constraints

Capital Investment Decisions

Filters