Question 1

Which one of the following could represent the expanded basic accounting equation?

Accepted Answer

A)  Assets = Liabilities + Owner's Capital + Owner's Drawings - Revenue - Expenses 
B)  Assets + Owner's Drawings + Expenses = Liabilities + Owner's Capital + Revenues 
C)  Assets - Liabilities - Owner's Drawings = Owner's Capital + Revenues - Expenses 
D)  Assets = Revenues + Expenses - Liabilities 
A)  Assets = Liabilities + Owner's Capital + Owner's Drawings - Revenue - Expenses 
B)  Assets + Owner's Drawings + Expenses = Liabilities + Owner's Capital + Revenues 
C)  Assets - Liabilities - Owner's Drawings = Owner's Capital + Revenues - Expenses 
D)  Assets = Revenues + Expenses - Liabilities

Question 2

Debits

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 3

The double-entry system requires that each transaction must be recorded

Accepted Answer

A)  in at least two different accounts. 
B)  in two sets of books. 
C)  in a journal and in a ledger. 
D)  first as a revenue and then as an expense. 
A)  in at least two different accounts. 
B)  in two sets of books. 
C)  in a journal and in a ledger. 
D)  first as a revenue and then as an expense.

Question 4

In recording an accounting transaction in a double-entry system

Accepted Answer

A)  the number of debit accounts must equal the number of credit accounts. 
B)  there must always be entries made on both sides of the accounting equation. 
C)  the amount of the debits must equal the amount of the credits. 
D)  there must only be two accounts affected by any transaction. 
A)  the number of debit accounts must equal the number of credit accounts. 
B)  there must always be entries made on both sides of the accounting equation. 
C)  the amount of the debits must equal the amount of the credits. 
D)  there must only be two accounts affected by any transaction.

Question 5

Receipt of a payment on account requires a credit to Accounts Payable.

Accepted Answer

A) True 
 B)False

Question 6

A credit represents a decrease to a revenue account.

Accepted Answer

A) True 
 B)False

Question 7

A debit represents an increase to an expense account.

Accepted Answer

A) True 
 B)False

Question 8

The purchase of supplies on account requires a credit to Accounts Payable.

Accepted Answer

A) True 
 B)False

Question 9

Owner's Drawings is

Accepted Answer

A)  increased when the owner invests cash in the business. 
B)  credited when cash or other assets are distributed to the owner. 
C)  increased for owner withdrawals. 
D)  decreased when the owner withdraws cash from the business. 
A)  increased when the owner invests cash in the business. 
B)  credited when cash or other assets are distributed to the owner. 
C)  increased for owner withdrawals. 
D)  decreased when the owner withdraws cash from the business.

Question 10

The right side of an account is

Accepted Answer

A)  the credit side. 
B)  blank. 
C)  the debit side. 
D)  the normal balance of the account. 
A)  the credit side. 
B)  blank. 
C)  the debit side. 
D)  the normal balance of the account.

Question 11

The normal balance of a liability account is a debit.

Accepted Answer

A) True 
 B)False

Question 12

Borrowing cash from the bank is recorded with a

Accepted Answer

A)  debit to Accounts Payable. 
B)  credit to Cash. 
C)  debit to Notes Payable. 
D)  credit to Notes Payable. 
A)  debit to Accounts Payable. 
B)  credit to Cash. 
C)  debit to Notes Payable. 
D)  credit to Notes Payable.

Question 13

Brettschneider CPA provided accounting services and billed the client $6,600. As a result of this transaction,

Accepted Answer

A)  total assets remained unchanged. 
B)  total liabilities increased by $6,600. 
C)  owner's equity increased by $6,600. 
D)  both assets and liabilities increased by $6,600. 
A)  total assets remained unchanged. 
B)  total liabilities increased by $6,600. 
C)  owner's equity increased by $6,600. 
D)  both assets and liabilities increased by $6,600.

Question 14

A credit balance in a liability account indicates that an error in recording has occurred.

Accepted Answer

A) True 
 B)False

Question 15

On October 3, Jimmy Stokes, a musician, received a cash payment for services previously billed to a client. Jimmy paid his cell phone bill. He also bought supplies on account. For the three transactions, at least one of the entries will include a

Accepted Answer

A)  credit to Owner's Drawings. 
B)  credit to Supplies Expense. 
C)  debit to Accounts Payable. 
D)  credit to Accounts Receivable. 
A)  credit to Owner's Drawings. 
B)  credit to Supplies Expense. 
C)  debit to Accounts Payable. 
D)  credit to Accounts Receivable.

Question 16

Laura Chu withdraws $1,000 cash from her company, One Note Music, for personal use. Recording this transaction will include a credit to Cash and a debit of $1,000 to

Accepted Answer

A)  Drawings Expense. 
B)  Owner's Capital. 
C)  Owner's Drawings. 
D)  Salaries and Wages Expense. 
A)  Drawings Expense. 
B)  Owner's Capital. 
C)  Owner's Drawings. 
D)  Salaries and Wages Expense.

Question 17

On October 3, Ken Steele, a carpenter, received a cash payment for services previously billed to a client. Ken paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a

Accepted Answer

A)  credit to Owner's Capital. 
B)  debit to Notes Payable. 
C)  debit to Accounts Receivable. 
D)  credit to Accounts Payable. 
A)  credit to Owner's Capital. 
B)  debit to Notes Payable. 
C)  debit to Accounts Receivable. 
D)  credit to Accounts Payable.

Question 18

At June 1, Cooper Company had an accounts receivable balance of $14,000. During the month, the company performed credit services of $35,000 and collected accounts receivable of $23,000. What is the balance in accounts receivable at June 30?

Accepted Answer

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Question 19

Beethoven Company provided consulting services and billed the client $3,600. As a result of this event,

Accepted Answer

A)  assets remained unchanged. 
B)  assets increased by $3,600. 
C)  owner's equity increased by $3,600. 
D)  assets and owner's equity both increased by $3,600. 
A)  assets remained unchanged. 
B)  assets increased by $3,600. 
C)  owner's equity increased by $3,600. 
D)  assets and owner's equity both increased by $3,600.

Question 20

Purchasing supplies for cash will require a credit to Supplies and a debit to Cash.

Accepted Answer

A) True 
 B)False

Which one of the following could represent the expanded basic accounting equation?

Debits

The double-entry system requires that each transaction must be recorded

In recording an accounting transaction in a double-entry system

Receipt of a payment on account requires a credit to Accounts Payable.

A credit represents a decrease to a revenue account.

A debit represents an increase to an expense account.

The purchase of supplies on account requires a credit to Accounts Payable.

Owner's Drawings is

The right side of an account is

The normal balance of a liability account is a debit.

Borrowing cash from the bank is recorded with a

Brettschneider CPA provided accounting services and billed the client $6,600. As a result of this transaction,

A credit balance in a liability account indicates that an error in recording has occurred.

On October 3, Jimmy Stokes, a musician, received a cash payment for services previously billed to a client. Jimmy paid his cell phone bill. He also bought supplies on account. For the three transactions, at least one of the entries will include a

Laura Chu withdraws $1,000 cash from her company, One Note Music, for personal use. Recording this transaction will include a credit to Cash and a debit of $1,000 to

On October 3, Ken Steele, a carpenter, received a cash payment for services previously billed to a client. Ken paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a

At June 1, Cooper Company had an accounts receivable balance of $14,000. During the month, the company performed credit services of $35,000 and collected accounts receivable of $23,000. What is the balance in accounts receivable at June 30?

Beethoven Company provided consulting services and billed the client $3,600. As a result of this event,

Purchasing supplies for cash will require a credit to Supplies and a debit to Cash.

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

Which one of the following could represent the expanded basic accounting equation?

Debits

The double-entry system requires that each transaction must be recorded

In recording an accounting transaction in a double-entry system

Receipt of a payment on account requires a credit to Accounts Payable.

A credit represents a decrease to a revenue account.

A debit represents an increase to an expense account.

The purchase of supplies on account requires a credit to Accounts Payable.

Owner's Drawings is

The right side of an account is

The normal balance of a liability account is a debit.

Borrowing cash from the bank is recorded with a

Brettschneider CPA provided accounting services and billed the client $6,600. As a result of this transaction,

A credit balance in a liability account indicates that an error in recording has occurred.

On October 3, Jimmy Stokes, a musician, received a cash payment for services previously billed to a client. Jimmy paid his cell phone bill. He also bought supplies on account. For the three transactions, at least one of the entries will include a

Laura Chu withdraws $1,000 cash from her company, One Note Music, for personal use. Recording this transaction will include a credit to Cash and a debit of $1,000 to

On October 3, Ken Steele, a carpenter, received a cash payment for services previously billed to a client. Ken paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a

At June 1, Cooper Company had an accounts receivable balance of $14,000. During the month, the company performed credit services of $35,000 and collected accounts receivable of $23,000. What is the balance in accounts receivable at June 30?

Beethoven Company provided consulting services and billed the client $3,600. As a result of this event,

Purchasing supplies for cash will require a credit to Supplies and a debit to Cash.

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