Question 1

The investment of cash in the business by the owner increases total liabilities.

Accepted Answer

A) True 
 B)False  False

Question 2

Ben's Discorama performed $2,000 of services in designing a disc golf course, with payment to be received later. The performance of services is recorded with a

Accepted Answer

A)  debit to Accounts Receivable. 
B)  credit to Cash. 
C)  debit to Service Revenue. 
D)  credit to Accounts Payable. 
A)  debit to Accounts Receivable. 
B)  credit to Cash. 
C)  debit to Service Revenue. 
D)  credit to Accounts Payable. A

Question 3

Alta Pass Brewing Company purchased additional equipment for $120,000. Alta Pass paid $25,000 in cash and signed a note for the balance. Alta Pass debited Equipment, credited Cash and

Accepted Answer

A)  nothing further must be done. 
B)  debited the Capital account for $120,000. 
C)  credited another asset account for $95,000. 
D)  credited a liability account for $95,000. 
A)  nothing further must be done. 
B)  debited the Capital account for $120,000. 
C)  credited another asset account for $95,000. 
D)  credited a liability account for $95,000. D

Question 4

The chart of accounts is a

Accepted Answer

A)  list of accounts and their balances at a given time. 
B)  device used to prove the mathematical accuracy of the accounts. 
C)  listing of the accounts and the account numbers which identify their location in the ledger. 
D)  required step in the recording process. 
A)  list of accounts and their balances at a given time. 
B)  device used to prove the mathematical accuracy of the accounts. 
C)  listing of the accounts and the account numbers which identify their location in the ledger. 
D)  required step in the recording process.

Question 5

A debit is the normal balance for which of the following accounts?

Accepted Answer

A)  Owner's Capital account 
B)  Revenue account 
C)  Liability account 
D)  Owner's Drawings account 
A)  Owner's Capital account 
B)  Revenue account 
C)  Liability account 
D)  Owner's Drawings account

Question 6

When the owner withdraws cash for personal use, the Owner's Drawing account is credited.

Accepted Answer

A) True 
 B)False

Question 7

Purchasing supplies on account increases total assets.

Accepted Answer

A) True 
 B)False

Question 8

The right side of an account

Accepted Answer

A)  is the correct side. 
B)  reflects all transactions for the accounting period. 
C)  shows all the balances of the accounts in the system. 
D)  is the credit side. 
A)  is the correct side. 
B)  reflects all transactions for the accounting period. 
C)  shows all the balances of the accounts in the system. 
D)  is the credit side.

Question 9

Jake Beacham withdrew $600 from his business for personal use. This transaction is recorded with a

Accepted Answer

A)  debit to Salaries and Wages Expense. 
B)  credit to Owner's Capital. 
C)  debit to Owner's Drawing. 
D)  credit to Salaries and Wages Expense. 
A)  debit to Salaries and Wages Expense. 
B)  credit to Owner's Capital. 
C)  debit to Owner's Drawing. 
D)  credit to Salaries and Wages Expense.

Question 10

A T-account is

Accepted Answer

A)  a way of depicting the basic form of an account. 
B)  what the computer uses to organize bytes of information. 
C)  a special account used instead of a trial balance. 
D)  used for accounts that have both a debit and credit balance. 
A)  a way of depicting the basic form of an account. 
B)  what the computer uses to organize bytes of information. 
C)  a special account used instead of a trial balance. 
D)  used for accounts that have both a debit and credit balance.

Question 11

Credit always means

Accepted Answer

A)  increase. 
B)  decrease. 
C)  left side 
D)  right side. 
A)  increase. 
B)  decrease. 
C)  left side 
D)  right side.

Question 12

Sigur Ros Company is a newly organized business. The list of accounts to Instructions Organize the accounts into the order in which they should appear in the ledger of Sigur Ros Company and assign account numbers. Use the following system to assign account numbers.

Accepted Answer

101- Cash
112- Accounts Receivable
125-

Question 13

Assets normally show

Accepted Answer

A)  credit balances. 
B)  debit balances. 
C)  debit and credit balances. 
D)  debit or credit balances. 
A)  credit balances. 
B)  debit balances. 
C)  debit and credit balances. 
D)  debit or credit balances.

Question 14

The double-entry system is a logical method for recording transactions and results in equal amounts for debits and credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 15

A chart of accounts for a business firm

Accepted Answer

A)  is a graph. 
B)  indicates the amount of profit or loss for the period. 
C)  lists the accounts and account numbers that identify their location in the ledger. 
D)  shows the balance of each account in the general ledger. 
A)  is a graph. 
B)  indicates the amount of profit or loss for the period. 
C)  lists the accounts and account numbers that identify their location in the ledger. 
D)  shows the balance of each account in the general ledger.

Question 16

If a company has overdrawn its bank balance, then

Accepted Answer

A)  its cash account will show a debit balance. 
B)  its cash account will show a credit balance. 
C)  the cash account debits will exceed the cash account credits. 
D)  it cannot be detected by observing the balance of the cash account. 
A)  its cash account will show a debit balance. 
B)  its cash account will show a credit balance. 
C)  the cash account debits will exceed the cash account credits. 
D)  it cannot be detected by observing the balance of the cash account.

Question 17

On July 7, 2020, Rancho Realty Co. performed cash services of $1,900. To record this transaction Rancho would

Accepted Answer

A)  debit Service Revenue for $1,900. 
B)  credit Accounts Receivable for $1,900. 
C)  debit Cash for $1,900. 
D)  credit Accounts Payable for $1,900. 
A)  debit Service Revenue for $1,900. 
B)  credit Accounts Receivable for $1,900. 
C)  debit Cash for $1,900. 
D)  credit Accounts Payable for $1,900.

Question 18

A classmate is considering dropping his accounting class because he cannot understand the rules of debits and credits.
a. Can the student be successful in the course without an understanding of the rules of debits and credits?
b. Explain the rules of debits and credits in a way that will help him understand them.

Accepted Answer

a. Accounting is based on the double-ent

Question 19

Your roommate, a marketing major, thinks that debit means decrease and credit means increase. And, that every account can be debited and credited and as result, every account can have both a debit and a credit balance. Explain to your roommate (1) the meaning of debit and credit; (2) which accounts can only be debited, which can only be credited, and which can be both debited and credited; and (3) which accounts normally have debit balances and which credit balances.

Accepted Answer

The terms debit and credit mean the left

Question 20

Jane Mena, the owner of Black Cat Burrito, withdrew $1,600 from the business for personal use. This transaction is recorded with a

Accepted Answer

A)  debit to Salaries and Wages Expense and a credit to Cash. 
B)  debit to Cash and a credit to Owner's Capital. 
C)  debit to Owner's Drawing and a credit to Cash. 
D)  debit to Owner's Capital and a credit to Salaries and Wages Expense. 
A)  debit to Salaries and Wages Expense and a credit to Cash. 
B)  debit to Cash and a credit to Owner's Capital. 
C)  debit to Owner's Drawing and a credit to Cash. 
D)  debit to Owner's Capital and a credit to Salaries and Wages Expense.

The investment of cash in the business by the owner increases total liabilities.

Ben's Discorama performed $2,000 of services in designing a disc golf course, with payment to be received later. The performance of services is recorded with a

Alta Pass Brewing Company purchased additional equipment for $120,000. Alta Pass paid $25,000 in cash and signed a note for the balance. Alta Pass debited Equipment, credited Cash and

The chart of accounts is a

A debit is the normal balance for which of the following accounts?

When the owner withdraws cash for personal use, the Owner's Drawing account is credited.

Purchasing supplies on account increases total assets.

The right side of an account

Jake Beacham withdrew $600 from his business for personal use. This transaction is recorded with a

A T-account is

Credit always means

Sigur Ros Company is a newly organized business. The list of accounts to Instructions Organize the accounts into the order in which they should appear in the ledger of Sigur Ros Company and assign account numbers. Use the following system to assign account numbers.

Assets normally show

The double-entry system is a logical method for recording transactions and results in equal amounts for debits and credits for each transaction.

A chart of accounts for a business firm

If a company has overdrawn its bank balance, then

On July 7, 2020, Rancho Realty Co. performed cash services of $1,900. To record this transaction Rancho would

Jane Mena, the owner of Black Cat Burrito, withdrew $1,600 from the business for personal use. This transaction is recorded with a

Welcome to Accounting

The Accounting Equation and Transaction Analysis

The Recording Process: the Journal, the Ledger, and the Trial Balance

Adjusting the Accounts and Preparing an Adjusted Trial Balance

Completing a Worksheet and Completing the Accounting Cycle

Merchandising Companies: Purchases Perpetual

Merchandising Companies: Sales Perpetual

Merchandising Companies: Worksheets and Financial Statements Perpetual

Special Journals

Inventory

Cash, Banking, and Internal Controls

Payroll Accounting: Employee Taxes and Records

Payroll Accounting: Employer Taxes and Records

Filters

Exam 3: The Recording Process: Debits and Credits

The investment of cash in the business by the owner increases total liabilities.

Ben's Discorama performed $2,000 of services in designing a disc golf course, with payment to be received later. The performance of services is recorded with a

Alta Pass Brewing Company purchased additional equipment for $120,000. Alta Pass paid $25,000 in cash and signed a note for the balance. Alta Pass debited Equipment, credited Cash and

The chart of accounts is a

A debit is the normal balance for which of the following accounts?

When the owner withdraws cash for personal use, the Owner's Drawing account is credited.

Purchasing supplies on account increases total assets.

The right side of an account

Jake Beacham withdrew $600 from his business for personal use. This transaction is recorded with a

A T-account is

Credit always means

Sigur Ros Company is a newly organized business. The list of accounts to Instructions Organize the accounts into the order in which they should appear in the ledger of Sigur Ros Company and assign account numbers. Use the following system to assign account numbers.

Assets normally show

The double-entry system is a logical method for recording transactions and results in equal amounts for debits and credits for each transaction.

A chart of accounts for a business firm

If a company has overdrawn its bank balance, then

On July 7, 2020, Rancho Realty Co. performed cash services of $1,900. To record this transaction Rancho would

Jane Mena, the owner of Black Cat Burrito, withdrew $1,600 from the business for personal use. This transaction is recorded with a

Welcome to Accounting

The Accounting Equation and Transaction Analysis

The Recording Process: the Journal, the Ledger, and the Trial Balance

Adjusting the Accounts and Preparing an Adjusted Trial Balance

Completing a Worksheet and Completing the Accounting Cycle

Merchandising Companies: Purchases Perpetual

Merchandising Companies: Sales Perpetual

Merchandising Companies: Worksheets and Financial Statements Perpetual

Special Journals

Inventory

Cash, Banking, and Internal Controls

Payroll Accounting: Employee Taxes and Records

Payroll Accounting: Employer Taxes and Records

Filters