Question 1

A credit is not the normal balance for which account listed below?

Accepted Answer

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

Question 2

Mr. Chatty's paid June rent for the building its restaurant occupies. This transaction is recorded with a

Accepted Answer

A)  debit to Rent Revenue. 
B)  credit to Cash. 
C)  debit to Accounts Payable. 
D)  credit to Rent Expense. 
A)  debit to Rent Revenue. 
B)  credit to Cash. 
C)  debit to Accounts Payable. 
D)  credit to Rent Expense.

Question 3

A service performed on account increases both assets and equity.

Accepted Answer

A) True 
 B)False

Question 4

A debit is recorded to increase an asset.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is not true?

Accepted Answer

A)  Expenses increase owner's equity. 
B)  Expenses have normal debit balances. 
C)  Expenses decrease owner's equity. 
D)  Expenses are a negative factor in the computation of net income. 
A)  Expenses increase owner's equity. 
B)  Expenses have normal debit balances. 
C)  Expenses decrease owner's equity. 
D)  Expenses are a negative factor in the computation of net income.

Question 6

Providing a service to a customer will be recorded by crediting the Service Revenue account.

Accepted Answer

A) True 
 B)False

Question 7

Which decreases owner's capital?

Accepted Answer

A)  Drawings. 
B)  Owner's investments. 
C)  Revenues. 
D)  Cash receipts. 
A)  Drawings. 
B)  Owner's investments. 
C)  Revenues. 
D)  Cash receipts.

Question 8

When Accounts Payable is credited, it indicates

Accepted Answer

A)  a decrease in the amount owed to creditors. 
B)  an increase in the amount owed to creditors. 
C)  an increase in the amount owed by customers. 
D)  a decrease in the amount owed by customers. 
A)  a decrease in the amount owed to creditors. 
B)  an increase in the amount owed to creditors. 
C)  an increase in the amount owed by customers. 
D)  a decrease in the amount owed by customers.

Question 9

On July 6, Rogers Company purchased equipment for $2,900 cash. As a result of this transaction,

Accepted Answer

A)  liabilities increased by $2,900. 
B)  total assets increased by $2,900. 
C)  owner's equity remained unchanged. 
D)  owner's equity decreased and total assets increased by $2,900. 
A)  liabilities increased by $2,900. 
B)  total assets increased by $2,900. 
C)  owner's equity remained unchanged. 
D)  owner's equity decreased and total assets increased by $2,900.

Question 10

A numbering system for a chart of accounts

Accepted Answer

A)  includes dollar amounts. 
B)  is uniform for all businesses. 
C)  usually starts with liabilities. 
D)  usually starts with assets. 
A)  includes dollar amounts. 
B)  is uniform for all businesses. 
C)  usually starts with liabilities. 
D)  usually starts with assets.

Question 11

Identify the equation element (asset, liability, owner's capital, owner's drawing, revenue, or expense), the normal balances (debit or credit), and which side shows an increase and which side shows a decrease for the following accounts. Complete the table.

Accepted Answer

The answer of Identify the equation element (asset, liability, owner's...

Question 12

Eight transactions are recorded in the following T-accounts:     Indicate for each debit and each credit: (a) whether an asset, liability, capital, drawing, revenue, or expense account was affected and (b) whether the account was increased (+) or (-) decreased.

Accepted Answer

The answer of Eight transactions are recorded in the following...

Question 13

Phast Mail Service purchased equipment for $2,000. Phast paid $500 in cash and signed a note for the balance. Phast debited the Equipment account, credited Cash and

Accepted Answer

A)  nothing further must be done. 
B)  debited the Capital account for $1,500. 
C)  credited another asset account for $500. 
D)  credited a liability account for $1,500. 
A)  nothing further must be done. 
B)  debited the Capital account for $1,500. 
C)  credited another asset account for $500. 
D)  credited a liability account for $1,500.

Question 14

Bellingham Company purchased manufacturing equipment for $20,000. Bellingham paid $5,000 in cash and signed a note for the balance. The company debited the Equipment account, credited the Cash account and

Accepted Answer

A)  credited the Drawings account for $15,000. 
B)  debited the Capital account for $15,000. 
C)  debited an expense account for $20,000. 
D)  credited a liability account for $15,000. 
A)  credited the Drawings account for $15,000. 
B)  debited the Capital account for $15,000. 
C)  debited an expense account for $20,000. 
D)  credited a liability account for $15,000.

Question 15

For each of the following transactions of Neon Garden, identify the account to 1. Purchased equipment for cash.
2. Paid weekly payroll.
3. Purchased supplies on account.
4. Received utility bill to

Accepted Answer

The answer of For each of the following transactions of...

Question 16

Credits

Accepted Answer

A)  decrease both assets and liabilities. 
B)  decrease assets and increase liabilities. 
C)  increase both assets and liabilities. 
D)  increase assets and decrease liabilities. 
A)  decrease both assets and liabilities. 
B)  decrease assets and increase liabilities. 
C)  increase both assets and liabilities. 
D)  increase assets and decrease liabilities.

Question 17

The normal balance of a liability account is a credit.

Accepted Answer

A) True 
 B)False

Question 18

At January 1, 2020, Croc Industries reported owner's capital of $140,000. During 2020, Croc had a net loss of $30,000 and owner drawings of $15,000. At December 31, 2020, the amount of owner's capital is

Accepted Answer

A)  $ 95,000. 
B)  $110,000. 
C)  $125,000. 
D)  $155,000. 
A)  $ 95,000. 
B)  $110,000. 
C)  $125,000. 
D)  $155,000.

Question 19

For the basic accounting equation to stay in balance, each transaction recorded must

Accepted Answer

A)  affect two or less accounts. 
B)  affect two or more accounts. 
C)  always affect exactly two accounts. 
D)  affect the same number of asset and liability accounts. 
A)  affect two or less accounts. 
B)  affect two or more accounts. 
C)  always affect exactly two accounts. 
D)  affect the same number of asset and liability accounts.

Question 20

A t-account is so named because

Accepted Answer

A)  it shows a total for the account. 
B)  it resembles the letter T. 
C)  it is a tabular format. 
D)  it comes from the Latin word "tabere" 
A)  it shows a total for the account. 
B)  it resembles the letter T. 
C)  it is a tabular format. 
D)  it comes from the Latin word "tabere"

A credit is not the normal balance for which account listed below?

Mr. Chatty's paid June rent for the building its restaurant occupies. This transaction is recorded with a

A service performed on account increases both assets and equity.

A debit is recorded to increase an asset.

Which of the following statements is not true?

Providing a service to a customer will be recorded by crediting the Service Revenue account.

Which decreases owner's capital?

When Accounts Payable is credited, it indicates

On July 6, Rogers Company purchased equipment for $2,900 cash. As a result of this transaction,

A numbering system for a chart of accounts

Identify the equation element (asset, liability, owner's capital, owner's drawing, revenue, or expense), the normal balances (debit or credit), and which side shows an increase and which side shows a decrease for the following accounts. Complete the table.

Eight transactions are recorded in the following T-accounts: Indicate for each debit and each credit: (a) whether an asset, liability, capital, drawing, revenue, or expense account was affected and (b) whether the account was increased (+) or (-) decreased.

Phast Mail Service purchased equipment for $2,000. Phast paid $500 in cash and signed a note for the balance. Phast debited the Equipment account, credited Cash and

Bellingham Company purchased manufacturing equipment for $20,000. Bellingham paid $5,000 in cash and signed a note for the balance. The company debited the Equipment account, credited the Cash account and

For each of the following transactions of Neon Garden, identify the account to 1. Purchased equipment for cash. 2. Paid weekly payroll. 3. Purchased supplies on account. 4. Received utility bill to

Credits

The normal balance of a liability account is a credit.

At January 1, 2020, Croc Industries reported owner's capital of $140,000. During 2020, Croc had a net loss of $30,000 and owner drawings of $15,000. At December 31, 2020, the amount of owner's capital is

For the basic accounting equation to stay in balance, each transaction recorded must

A t-account is so named because

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

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Exam 3: The Recording Process: Debits and Credits

A credit is not the normal balance for which account listed below?

Mr. Chatty's paid June rent for the building its restaurant occupies. This transaction is recorded with a

A service performed on account increases both assets and equity.

A debit is recorded to increase an asset.

Which of the following statements is not true?

Providing a service to a customer will be recorded by crediting the Service Revenue account.

Which decreases owner's capital?

When Accounts Payable is credited, it indicates

On July 6, Rogers Company purchased equipment for $2,900 cash. As a result of this transaction,

A numbering system for a chart of accounts

Identify the equation element (asset, liability, owner's capital, owner's drawing, revenue, or expense), the normal balances (debit or credit), and which side shows an increase and which side shows a decrease for the following accounts. Complete the table.

Eight transactions are recorded in the following T-accounts: Indicate for each debit and each credit: (a) whether an asset, liability, capital, drawing, revenue, or expense account was affected and (b) whether the account was increased (+) or (-) decreased.

Phast Mail Service purchased equipment for $2,000. Phast paid $500 in cash and signed a note for the balance. Phast debited the Equipment account, credited Cash and

Bellingham Company purchased manufacturing equipment for $20,000. Bellingham paid $5,000 in cash and signed a note for the balance. The company debited the Equipment account, credited the Cash account and

For each of the following transactions of Neon Garden, identify the account to 1. Purchased equipment for cash. 2. Paid weekly payroll. 3. Purchased supplies on account. 4. Received utility bill to

Credits

The normal balance of a liability account is a credit.

At January 1, 2020, Croc Industries reported owner's capital of $140,000. During 2020, Croc had a net loss of $30,000 and owner drawings of $15,000. At December 31, 2020, the amount of owner's capital is

For the basic accounting equation to stay in balance, each transaction recorded must

A t-account is so named because

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