Question 1

A debit is not the normal balance for which of the following accounts?

Accepted Answer

A)  Expense account 
B)  Revenue account 
C)  Asset account 
D)  Owner's Drawings account 
A)  Expense account 
B)  Revenue account 
C)  Asset account 
D)  Owner's Drawings account

Question 2

Debit and credit can be interpreted to mean increase and decrease, respectively.

Accepted Answer

A) True 
 B)False

Question 3

The chart of accounts is the basic form of an account format.

Accepted Answer

A) True 
 B)False

Question 4

Haircut 101 performed services for cash of $900. To record this transaction, Haircut 101 would

Accepted Answer

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

Question 5

The normal balance of an asset account is a credit.

Accepted Answer

A) True 
 B)False

Question 6

The purchase of equipment is recorded with a debit to the Equipment account.

Accepted Answer

A) True 
 B)False

Question 7

Which account listed below is increased with a debit?

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 8

Which usually indicates an error?

Accepted Answer

A)  A debit balance in Cash. 
B)  A credit balance in Land. 
C)  A debit balance in Rent Expense. 
D)  A credit balance in Owner's Capital. 
A)  A debit balance in Cash. 
B)  A credit balance in Land. 
C)  A debit balance in Rent Expense. 
D)  A credit balance in Owner's Capital.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The double-entry system of recording means that debits must equal credits.

Accepted Answer

A) True 
 B)False

Question 11

An accountant has debited an asset account for $1,400 and credited a liability account for $500. What can be done to complete the recording of the transaction?

Accepted Answer

A)  Nothing further must be done. 
B)  Debit an owner's equity account for $900. 
C)  Debit another asset account for $900. 
D)  Credit a different asset account for $900. 
A)  Nothing further must be done. 
B)  Debit an owner's equity account for $900. 
C)  Debit another asset account for $900. 
D)  Credit a different asset account for $900.

Question 12

The chart of accounts used by Notwist Copy Company is listed below. You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate boxes.

Accepted Answer

The answer of The chart of accounts used by Notwist...

Question 13

The accounting equation could be written as assets - owner's capital = liabilities.

Accepted Answer

A) True 
 B)False

Question 14

A debit to an account indicates an increase in that account.

Accepted Answer

A) True 
 B)False

Question 15

The normal balance of Owners' Capital is a

Accepted Answer

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

Question 16

A purchase of supplies, to be used over several months, on credit is recorded with a

Accepted Answer

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

Question 17

A debit to an asset account indicates

Accepted Answer

A)  an error. 
B)  a credit was made to a liability account. 
C)  a decrease in the asset. 
D)  an increase in the asset. 
A)  an error. 
B)  a credit was made to a liability account. 
C)  a decrease in the asset. 
D)  an increase in the asset.

Question 18

A payment on account increases total expenses.

Accepted Answer

A) True 
 B)False

Question 19

A credit to a liability account indicates

Accepted Answer

A)  that Cash decreased. 
B)  that the normal balance of the account is a credit. 
C)  a decrease in the liability. 
D)  an increase in the liability. 
A)  that Cash decreased. 
B)  that the normal balance of the account is a credit. 
C)  a decrease in the liability. 
D)  an increase in the liability.

Question 20

Liability accounts are increased with credits..

Accepted Answer

A) True 
 B)False

A debit is not the normal balance for which of the following accounts?

Debit and credit can be interpreted to mean increase and decrease, respectively.

The chart of accounts is the basic form of an account format.

Haircut 101 performed services for cash of $900. To record this transaction, Haircut 101 would

The normal balance of an asset account is a credit.

The purchase of equipment is recorded with a debit to the Equipment account.

Which account listed below is increased with a debit?

Which usually indicates an error?

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

The double-entry system of recording means that debits must equal credits.

An accountant has debited an asset account for $1,400 and credited a liability account for $500. What can be done to complete the recording of the transaction?

The chart of accounts used by Notwist Copy Company is listed below. You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate boxes.

The accounting equation could be written as assets - owner's capital = liabilities.

A debit to an account indicates an increase in that account.

The normal balance of Owners' Capital is a

A purchase of supplies, to be used over several months, on credit is recorded with a

A debit to an asset account indicates

A payment on account increases total expenses.

A credit to a liability account indicates

Liability accounts are increased with credits..

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

A debit is not the normal balance for which of the following accounts?

Debit and credit can be interpreted to mean increase and decrease, respectively.

The chart of accounts is the basic form of an account format.

Haircut 101 performed services for cash of $900. To record this transaction, Haircut 101 would

The normal balance of an asset account is a credit.

The purchase of equipment is recorded with a debit to the Equipment account.

Which account listed below is increased with a debit?

Which usually indicates an error?

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

The double-entry system of recording means that debits must equal credits.

An accountant has debited an asset account for $1,400 and credited a liability account for $500. What can be done to complete the recording of the transaction?

The chart of accounts used by Notwist Copy Company is listed below. You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate boxes.

The accounting equation could be written as assets - owner's capital = liabilities.

A debit to an account indicates an increase in that account.

The normal balance of Owners' Capital is a

A purchase of supplies, to be used over several months, on credit is recorded with a

A debit to an asset account indicates

A payment on account increases total expenses.

A credit to a liability account indicates

Liability accounts are increased with credits..

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