Question 1

Gae Kapral withdraws $7,000 cash from her law firm for personal use. This transaction is recorded with a debit of $7,000 to

Accepted Answer

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

Question 2

Which decreases owner's capital?

Accepted Answer

A)  Revenues 
B)  Owner's Investments. 
C)  Expenses. 
D)  Cash payments. 
A)  Revenues 
B)  Owner's Investments. 
C)  Expenses. 
D)  Cash payments.

Question 3

The best interpretation of the word credit is the

Accepted Answer

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

Question 4

A fellow classmate is confused about how debits and credits relate to the basic accounting equation. State the basic accounting equation, convert it into the expanded accounting equation, and then explain how it ties into the rules for debits and credits.

Accepted Answer

The basic accounting equation is:
Assets

Question 5

Bertoli Company showed the following balances at the end of its first year: 
$\begin{array}{lr}
\text { Cash } & \$ 4,000 \
\text { Prepaid insurance } & 7,000 \
\text { Accounts receivable } & 8,000 \
\text { Accounts payable } & 4,000 \
\text { Notes payable } & 7,000 \
\text { Owner's Capital } & 3,000 \
\text { Owner's Drawings } & 2,000 \
\text { Revenues } & 32,000 \
\text { Expenses } & 25,000
\end{array}$
What is the total credits for Bertoli?

Accepted Answer

A)  $ 14,000 
B)  $46,000 
C)  $44,000 
D)  $48,000 
A)  $ 14,000 
B)  $46,000 
C)  $44,000 
D)  $48,000

Question 6

The normal balance of an expense is a credit.

Accepted Answer

A) True 
 B)False

Question 7

Debits are used to

Accepted Answer

A)  decrease both asset and liability accounts 
B)  decrease liability accounts and increase asset accounts. 
C)  increase both asset and liability accountss. 
D)  increase liability accounts and decrease asset accounts. 
A)  decrease both asset and liability accounts 
B)  decrease liability accounts and increase asset accounts. 
C)  increase both asset and liability accountss. 
D)  increase liability accounts and decrease asset accounts.

Question 8

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

Accepted Answer

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

Question 9

Which of the following statements about expenses is not true?

Accepted Answer

A)  Expenses decrease owner's equity. 
B)  Expenses have normal debit balances. 
C)  Expenses increase owner's drawings. 
D)  Expenses are subtraced from revenues in the computation of net income. 
A)  Expenses decrease owner's equity. 
B)  Expenses have normal debit balances. 
C)  Expenses increase owner's drawings. 
D)  Expenses are subtraced from revenues in the computation of net income.

Question 10

Which of the following statements is true?

Accepted Answer

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

Question 11

For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance. Increase (+), Decrease (-).

Accepted Answer

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

Question 12

An account consists of

Accepted Answer

A)  one part. 
B)  two parts. 
C)  three parts. 
D)  four parts. 
A)  one part. 
B)  two parts. 
C)  three parts. 
D)  four parts.

Question 13

An account is often referred to as a T-account because of the way it is constructed.

Accepted Answer

A) True 
 B)False

Question 14

Qwik Company showed the following balances at the end of its first year: 
$\begin{array}{lr}
\text { Cash } & \$ 8,700 \
\text { Prepaid insurance } & 9,400 \
\text { Accounts receivable } & 7,000 \
\text { Accounts payable } & 5,800\\text { Notes payable } & 9,400 \
\text { Owner's Capital } & 2,300 \
\text { Owner's Drawings } & 1,400 \
\text { Revenues } & 44,000 \
\text { Expenses } & 35,000
\end{array}$
What is the total of the accounts with a credit balance?

Accepted Answer

A)  $ 52,400 
B)  $ 61,500 
C)  $ 62,900 
D)  $ 70,900 
A)  $ 52,400 
B)  $ 61,500 
C)  $ 62,900 
D)  $ 70,900

Question 15

In the first month of operations for Pendleton Industries, the total of the debit entries to the cash account amounted to $33,000 ($13,000 investment by the owner and revenues of $20,000). The total of the credit entries to the cash account amounted to $21,000 (purchase of equipment $8,000 and payment of expenses $13,000). At the end of the month, the cash account has a(n)

Accepted Answer

A)  $5,000 credit balance. 
B)  $5,000 debit balance. 
C)  $12,000 debit balance. 
D)  $12,000 credit balance. 
A)  $5,000 credit balance. 
B)  $5,000 debit balance. 
C)  $12,000 debit balance. 
D)  $12,000 credit balance.

Question 16

If a revenue account is credited, the revenue account is increased.

Accepted Answer

A) True 
 B)False

Question 17

The left side of an account is

Accepted Answer

A)  blank. 
B)  a description of the account. 
C)  the debit side. 
D)  the balance of the account. 
A)  blank. 
B)  a description of the account. 
C)  the debit side. 
D)  the balance of the account.

Question 18

Which increases owner's capital?

Accepted Answer

A)  Revenues 
B)  Cash collections. 
C)  Expenses. 
D)  Drawings. 
A)  Revenues 
B)  Cash collections. 
C)  Expenses. 
D)  Drawings.

Question 19

A purchase of land for cash is recorded with a

Accepted Answer

A)  debit to Cash. 
B)  credit to Cash. 
C)  debit to an expense account. 
D)  credit to Land. 
A)  debit to Cash. 
B)  credit to Cash. 
C)  debit to an expense account. 
D)  credit to Land.

Question 20

At January 31, 2020, the balance in Bigelow Inc.'s accounts payable account was $780. During February, Bigelow purchased supplies on credit of $900 and paid creditors $1,150. At the end of February, the balance in the accounts payable account should be

Accepted Answer

A)  $530 credit. 
B)  $1,030 credit. 
C)  $530 debit. 
D)  $830 debit. 
A)  $530 credit. 
B)  $1,030 credit. 
C)  $530 debit. 
D)  $830 debit.

Gae Kapral withdraws $7,000 cash from her law firm for personal use. This transaction is recorded with a debit of $7,000 to

Which decreases owner's capital?

The best interpretation of the word credit is the

A fellow classmate is confused about how debits and credits relate to the basic accounting equation. State the basic accounting equation, convert it into the expanded accounting equation, and then explain how it ties into the rules for debits and credits.

Bertoli Company showed the following balances at the end of its first year: Cash \ 4,000 Prepaid insurance 7,000 Accounts receivable 8,000 Accounts payable 4,000 Notes payable 7,000 Owner's Capital 3,000 Owner's Drawings 2,000 Revenues 32,000 Expenses 25,000 What is the total credits for Bertoli?

The normal balance of an expense is a credit.

Debits are used to

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

Which of the following statements about expenses is not true?

Which of the following statements is true?

For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance. Increase (+), Decrease (-).

An account consists of

An account is often referred to as a T-account because of the way it is constructed.

If a revenue account is credited, the revenue account is increased.

The left side of an account is

Which increases owner's capital?

A purchase of land for cash is recorded with a

At January 31, 2020, the balance in Bigelow Inc.'s accounts payable account was $780. During February, Bigelow purchased supplies on credit of $900 and paid creditors $1,150. At the end of February, the balance in the accounts payable account should be

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

Gae Kapral withdraws $7,000 cash from her law firm for personal use. This transaction is recorded with a debit of $7,000 to

Which decreases owner's capital?

The best interpretation of the word credit is the

A fellow classmate is confused about how debits and credits relate to the basic accounting equation. State the basic accounting equation, convert it into the expanded accounting equation, and then explain how it ties into the rules for debits and credits.

Bertoli Company showed the following balances at the end of its first year: Cash \ 4,000 Prepaid insurance 7,000 Accounts receivable 8,000 Accounts payable 4,000 Notes payable 7,000 Owner's Capital 3,000 Owner's Drawings 2,000 Revenues 32,000 Expenses 25,000 What is the total credits for Bertoli?

The normal balance of an expense is a credit.

Debits are used to

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

Which of the following statements about expenses is not true?

Which of the following statements is true?

For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance. Increase (+), Decrease (-).

An account consists of

An account is often referred to as a T-account because of the way it is constructed.

If a revenue account is credited, the revenue account is increased.

The left side of an account is

Which increases owner's capital?

A purchase of land for cash is recorded with a

At January 31, 2020, the balance in Bigelow Inc.'s accounts payable account was $780. During February, Bigelow purchased supplies on credit of $900 and paid creditors $1,150. At the end of February, the balance in the accounts payable account should be

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