Question 1

Sara Bernheat withdraws $700 cash from her business for personal use. Recording this transaction will include a debit of $700 to

Accepted Answer

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

Question 2

During an accounting period, a business has numerous transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries.

Accepted Answer

The answer of During an accounting period, a business has...

Question 3

Selected transactions for A. Byrjun, a property manager, in her first month of business,
are as follows.   Instructions
For each transaction indicate the following.
(a) The basic type of account debited and credited (asset (A), liability (L), owner's equity (OE)).
(b) The specific account debited and credited (cash, rent expense, service revenue, etc.).
(c) Whether the specific account is increased (incr.) or decreased (decr).
(d) The normal balance of the specific account.
Use the following format, in which the January 2 transaction is given as an example.

Accepted Answer

The answer of Selected transactions for A. Byrjun, a property...

Question 4

For each of the following accounts indicate (a) the type of account (Asset, Liability, Owner's Equity, Revenue, Expense), (b) the debit and credit effects, and (c) the normal account balance.

Accepted Answer

The answer of For each of the following accounts indicate...

Question 5

Which of the following rules is incorrect?

Accepted Answer

A)  Credits decrease the owner's drawings account. 
B)  Debits increase the owner's capital account. 
C)  Credits increase revenue accounts. 
D)  Debits decrease liability accounts. 
A)  Credits decrease the owner's drawings account. 
B)  Debits increase the owner's capital account. 
C)  Credits increase revenue accounts. 
D)  Debits decrease liability accounts.

Question 6

Both services performed on account and services performed in exchange for Cash are recorded with a credit to Revenues.

Accepted Answer

A) True 
 B)False

Question 7

In the first month of operations, the total of the debit entries to the cash account amounted to $1,400 and the total of the credit entries to the cash account amounted to $800. The cash account has a(n)

Accepted Answer

A)  $800 credit balance. 
B)  $1,400 debit balance. 
C)  $600 debit balance. 
D)  $600 credit balance. 
A)  $800 credit balance. 
B)  $1,400 debit balance. 
C)  $600 debit balance. 
D)  $600 credit balance.

Question 8

Ben's Discorama received $1,000 for services in designing a disc golf course. It is recorded with a

Accepted Answer

A)  debit to Accounts Receivable. 
B)  credit to Cash. 
C)  debit to an expense account. 
D)  credit to Service Revenue. 
A)  debit to Accounts Receivable. 
B)  credit to Cash. 
C)  debit to an expense account. 
D)  credit to Service Revenue.

Question 9

A credit to an asset account indicates

Accepted Answer

A)  an error. 
B)  that the normal balance of the account is a credit. 
C)  a decrease in the asset. 
D)  an increase in the asset. 
A)  an error. 
B)  that the normal balance of the account is a credit. 
C)  a decrease in the asset. 
D)  an increase in the asset.

Question 10

Under the double-entry system, revenues must always equal expenses.

Accepted Answer

A) True 
 B)False

Question 11

Knowledge of the normal balances of accounts would help identify which of the following as an error in the recording process?

Accepted Answer

A)  A debit balance in an asset account 
B)  A credit balance in a revenue account 
C)  A credit balance in a liabilities account 
D)  A credit balance in an expense account 
A)  A debit balance in an asset account 
B)  A credit balance in a revenue account 
C)  A credit balance in a liabilities account 
D)  A credit balance in an expense account

Question 12

Agworth Company debited an asset account for $1,300 and credited a liability account for $600. Which of the following would be an incorrect way to complete the recording of the transaction?

Accepted Answer

A)  Credit an asset account for $700. 
B)  Credit another liability account for $700. 
C)  Credit an owner's equity account for $700. 
D)  Debit an owner's equity account for $700. 
A)  Credit an asset account for $700. 
B)  Credit another liability account for $700. 
C)  Credit an owner's equity account for $700. 
D)  Debit an owner's equity account for $700.

Question 13

The equipment and supplies accounts normally show

Accepted Answer

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

Question 14

Which of the following correctly identifies the normal balances of accounts?

Accepted Answer

A) $\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Owner's Capital } & \text { Credit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Debit }
\end{array}$ 
B) $\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Owner's Capital } & \text { Credit } \
\text { Revenues } & \text { Debit } \
\text { Expenses } & \text { Credit }
\end{array}$ 
C) $\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Debit } \
\text { Owner's Capital } & \text { Debit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Credit }
\end{array}$ 
D) $\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Owner's Capital } & \text { Credit } \
\text { Revenues } & \text { Debit } \
\text { Expenses } & \text { Credit }
\end{array}$ 
A) $\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Owner's Capital } & \text { Credit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Debit }
\end{array}$ 
B) $\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Owner's Capital } & \text { Credit } \
\text { Revenues } & \text { Debit } \
\text { Expenses } & \text { Credit }
\end{array}$ 
C) $\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Debit } \
\text { Owner's Capital } & \text { Debit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Credit }
\end{array}$ 
D) $\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Owner's Capital } & \text { Credit } \
\text { Revenues } & \text { Debit } \
\text { Expenses } & \text { Credit }
\end{array}$

Question 15

Services performed on account requires a credit to Accounts Receivable.

Accepted Answer

A) True 
 B)False

Question 16

The best interpretation of the word debit is the

Accepted Answer

A)  left side of an account. 
B)  increase side of an account. 
C)  right side of an account. 
D)  decrease side of an account. 
A)  left side of an account. 
B)  increase side of an account. 
C)  right side of an account. 
D)  decrease side of an account.

Question 17

On June 1, 2020, Barcelona Inc. reported a cash balance of $11,000. During June, Barcelona made deposits of $3,000 and made disbursements totalling $9,000. What is the cash balance at the end of June?

Accepted Answer

A)  $5,000 debit balance 
B)  $14,000 debit balance 
C)  $5,000 credit balance 
D)  $4,000 credit balance 
A)  $5,000 debit balance 
B)  $14,000 debit balance 
C)  $5,000 credit balance 
D)  $4,000 credit balance

Question 18

For each transaction given, enter in the tabulation given below a "D" for debit and a "C" for credit to reflect the increases and decreases of the assets, liabilities, and owner's equity accounts. In some cases there may Transactions:
1. Owner invests cash in the business.
2. Pays cash for equipment.
3. Pays administrative assistant's salary.
4. Purchases office supplies on account.
5. Pays electricity bill.
6. Borrows money from local bank.
7. Makes payment on account.
8. Receives cash due from customers.
9. Provides services on account.
10. Owner withdraws assets from the business.

Accepted Answer

The answer of For each transaction given, enter in the...

Question 19

Asset accounts are increased with credits.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a true statement?

Accepted Answer

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

Sara Bernheat withdraws $700 cash from her business for personal use. Recording this transaction will include a debit of $700 to

During an accounting period, a business has numerous transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries.

For each of the following accounts indicate (a) the type of account (Asset, Liability, Owner's Equity, Revenue, Expense), (b) the debit and credit effects, and (c) the normal account balance.

Which of the following rules is incorrect?

Both services performed on account and services performed in exchange for Cash are recorded with a credit to Revenues.

In the first month of operations, the total of the debit entries to the cash account amounted to $1,400 and the total of the credit entries to the cash account amounted to $800. The cash account has a(n)

Ben's Discorama received $1,000 for services in designing a disc golf course. It is recorded with a

A credit to an asset account indicates

Under the double-entry system, revenues must always equal expenses.

Knowledge of the normal balances of accounts would help identify which of the following as an error in the recording process?

Agworth Company debited an asset account for $1,300 and credited a liability account for $600. Which of the following would be an incorrect way to complete the recording of the transaction?

The equipment and supplies accounts normally show

Which of the following correctly identifies the normal balances of accounts?

Services performed on account requires a credit to Accounts Receivable.

The best interpretation of the word debit is the

On June 1, 2020, Barcelona Inc. reported a cash balance of $11,000. During June, Barcelona made deposits of $3,000 and made disbursements totalling $9,000. What is the cash balance at the end of June?

Asset accounts are increased with credits.

Which of the following is a true statement?

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

Sara Bernheat withdraws $700 cash from her business for personal use. Recording this transaction will include a debit of $700 to

During an accounting period, a business has numerous transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries.

For each of the following accounts indicate (a) the type of account (Asset, Liability, Owner's Equity, Revenue, Expense), (b) the debit and credit effects, and (c) the normal account balance.

Which of the following rules is incorrect?

Both services performed on account and services performed in exchange for Cash are recorded with a credit to Revenues.

In the first month of operations, the total of the debit entries to the cash account amounted to $1,400 and the total of the credit entries to the cash account amounted to $800. The cash account has a(n)

Ben's Discorama received $1,000 for services in designing a disc golf course. It is recorded with a

A credit to an asset account indicates

Under the double-entry system, revenues must always equal expenses.

Knowledge of the normal balances of accounts would help identify which of the following as an error in the recording process?

Agworth Company debited an asset account for $1,300 and credited a liability account for $600. Which of the following would be an incorrect way to complete the recording of the transaction?

The equipment and supplies accounts normally show

Which of the following correctly identifies the normal balances of accounts?

Services performed on account requires a credit to Accounts Receivable.

The best interpretation of the word debit is the

On June 1, 2020, Barcelona Inc. reported a cash balance of $11,000. During June, Barcelona made deposits of $3,000 and made disbursements totalling $9,000. What is the cash balance at the end of June?

Asset accounts are increased with credits.

Which of the following is a true statement?

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