Question 1

The normal balance of an asset account is a debit.

Accepted Answer

A) True 
 B)False

Question 2

A debit to a liability account indicates

Accepted Answer

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

Question 3

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

Accepted Answer

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

Question 4

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

Accepted Answer

A)  Equipment 
B)  Cash 
C)  Accounts Receivable 
D)  Accounts Payable 
A)  Equipment 
B)  Cash 
C)  Accounts Receivable 
D)  Accounts Payable

Question 5

Josie's Gym received payment from customers that they billed last month. The receipt is recorded with a

Accepted Answer

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

Question 6

Boise Co. pays its employees twice a month, on the 7th and the 21st. On June 21, Boise Co. paid employee salaries of $6,000. This transaction would

Accepted Answer

A)  increase owner's equity by $6,000. 
B)  decrease the balance in Salaries and Wages Expense by $6,000. 
C)  decrease net income for the month by $6,000. 
D)  be recorded by a $6,000 debit to Salaries and Wages Payable and a $6,000 credit to Salaries and Wages Expense. 
A)  increase owner's equity by $6,000. 
B)  decrease the balance in Salaries and Wages Expense by $6,000. 
C)  decrease net income for the month by $6,000. 
D)  be recorded by a $6,000 debit to Salaries and Wages Payable and a $6,000 credit to Salaries and Wages Expense.

Question 7

Knowing the normal balances of accounts would help an accountant spot which of the following as a recording error?

Accepted Answer

A)  A debit balance in the owner's drawing account 
B)  A debit balance in an asset account 
C)  A credit balance in a liabilities account 
D)  A debit balance in a revenue account 
A)  A debit balance in the owner's drawing account 
B)  A debit balance in an asset account 
C)  A credit balance in a liabilities account 
D)  A debit balance in a revenue account

Question 8

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

Accepted Answer

A)  A credit balance in Accounts Payable 
B)  A debit balance in Accounts Receivable 
C)  A debit balance in Owner's Drawings 
D)  A debit balance in Revenue 
A)  A credit balance in Accounts Payable 
B)  A debit balance in Accounts Receivable 
C)  A debit balance in Owner's Drawings 
D)  A debit balance in Revenue

Question 9

The normal balance of Owner's Capital is a debit.

Accepted Answer

A) True 
 B)False

Question 10

The investement of cash in the business by the owner increases total assets and total equity.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is true?

Accepted Answer

A)  Expenses accounts have normal credit balances and decrease owner's capital. 
B)  Expense accounts are increased with debits and have normal debit balances. 
C)  Expenses increase owner's capital. 
D)  Expenses and Owner's Drawings are negative factors in the computation of net income. 
A)  Expenses accounts have normal credit balances and decrease owner's capital. 
B)  Expense accounts are increased with debits and have normal debit balances. 
C)  Expenses increase owner's capital. 
D)  Expenses and Owner's Drawings are negative factors in the computation of net income.

Question 12

The owner's drawings account

Accepted Answer

A)  appears on the income statement along with the expenses of the business. 
B)  must show transactions every accounting period. 
C)  is increased with debits and decreased with credits. 
D)  is not a proper subdivision of owner's equity. 
A)  appears on the income statement along with the expenses of the business. 
B)  must show transactions every accounting period. 
C)  is increased with debits and decreased with credits. 
D)  is not a proper subdivision of owner's equity.

Question 13

Which of the following is not true of the terms debit and credit?

Accepted Answer

A)  They can be abbreviated as Dr. and Cr. 
B)  They can be interpreted to mean increase and decrease. 
C)  They can be used to describe the balance of an account. 
D)  They can be interpreted to mean left and right. 
A)  They can be abbreviated as Dr. and Cr. 
B)  They can be interpreted to mean increase and decrease. 
C)  They can be used to describe the balance of an account. 
D)  They can be interpreted to mean left and right.

Question 14

When Accounts Receivable account is debited, 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 15

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

Accepted Answer

A) True 
 B)False

Question 16

The recording process becomes more efficient and informative if all transactions are recorded in one account.

Accepted Answer

A) True 
 B)False

Question 17

Purchasing equipment for cash will increase total assets.

Accepted Answer

A) True 
 B)False

Question 18

Which account below is not a subdivision of owner's equity?

Accepted Answer

A)  Owner's Drawings 
B)  Revenues 
C)  Expenses 
D)  Liabilities 
A)  Owner's Drawings 
B)  Revenues 
C)  Expenses 
D)  Liabilities

Question 19

The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger.

Accepted Answer

A) True 
 B)False

Question 20

The normal balance of all accounts is a debit.

Accepted Answer

A) True 
 B)False

The normal balance of an asset account is a debit.

A debit to a liability account indicates

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

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

Josie's Gym received payment from customers that they billed last month. The receipt is recorded with a

Boise Co. pays its employees twice a month, on the 7th and the 21st. On June 21, Boise Co. paid employee salaries of $6,000. This transaction would

Knowing the normal balances of accounts would help an accountant spot which of the following as a recording error?

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

The normal balance of Owner's Capital is a debit.

The investement of cash in the business by the owner increases total assets and total equity.

Which of the following statements is true?

The owner's drawings account

Which of the following is not true of the terms debit and credit?

When Accounts Receivable account is debited, it indicates

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

The recording process becomes more efficient and informative if all transactions are recorded in one account.

Purchasing equipment for cash will increase total assets.

Which account below is not a subdivision of owner's equity?

The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger.

The normal balance of all accounts is a debit.

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 normal balance of an asset account is a debit.

A debit to a liability account indicates

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

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

Josie's Gym received payment from customers that they billed last month. The receipt is recorded with a

Boise Co. pays its employees twice a month, on the 7th and the 21st. On June 21, Boise Co. paid employee salaries of $6,000. This transaction would

Knowing the normal balances of accounts would help an accountant spot which of the following as a recording error?

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

The normal balance of Owner's Capital is a debit.

The investement of cash in the business by the owner increases total assets and total equity.

Which of the following statements is true?

The owner's drawings account

Which of the following is not true of the terms debit and credit?

When Accounts Receivable account is debited, it indicates

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

The recording process becomes more efficient and informative if all transactions are recorded in one account.

Purchasing equipment for cash will increase total assets.

Which account below is not a subdivision of owner's equity?

The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger.

The normal balance of all accounts is a debit.

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