Question 1

When the bank takes money out of a company's account,why does the bank say that they have debited that account?

Accepted Answer

A) The bank has increased the company's assets and assets increase with debits. 
B) The bank has decreased its' liability to the company and liabilities decrease with debits. 
C) The bank has decreased the company's assets and assets decrease with debits. 
D) The bank has increased its' liability to the company and liabilities increase with debits. 
A) The bank has increased the company's assets and assets increase with debits. 
B) The bank has decreased its' liability to the company and liabilities decrease with debits. 
C) The bank has decreased the company's assets and assets decrease with debits. 
D) The bank has increased its' liability to the company and liabilities increase with debits.

Question 2

Accounts that increase on the credit side are Assets,dividends and Expenses (ADE).

Accepted Answer

A) True 
 B)False

Question 3

A company has a ten million dollar debit balance in the payable accounts.Given this information,which of the following is a TRUE statement?

Accepted Answer

A) It is NOT normal for payable accounts to have a debit balance 
B) Not enough information provided,since normal account balances are different for each company. 
C) Payable accounts don't tend to run this high,so this is not a normal balance. 
D) It is ALWAYS normal for payable accounts to have a debit balance. 
A) It is NOT normal for payable accounts to have a debit balance 
B) Not enough information provided,since normal account balances are different for each company. 
C) Payable accounts don't tend to run this high,so this is not a normal balance. 
D) It is ALWAYS normal for payable accounts to have a debit balance.

Question 4

The first step in recording a transaction in the general journal is to record the:

Accepted Answer

A) explanation of the entry. 
B) account(s)to be credited and the amount(s). 
C) date of the entry. 
D) account(s)to be debited and the amount(s). 
A) explanation of the entry. 
B) account(s)to be credited and the amount(s). 
C) date of the entry. 
D) account(s)to be debited and the amount(s).

Question 5

Account titles such as Marketing Expense and Depreciation Expense would be numbered starting with a 3.

Accepted Answer

A) True 
 B)False

Question 6

Chronological order dictates the order in which transactions are journalized.

Accepted Answer

A) True 
 B)False

Question 7

If an account's total credits are more than its total debits,then it has a positive balance.

Accepted Answer

A) True 
 B)False

Question 8

On the trial balance,which account balances should be listed in the credit column?

Accepted Answer

A) Liabilities,Retained Earnings,and Revenues 
B) Assets,Retained Earnings,and Expenses 
C) Liabilities,Common Stock,and Expenses 
D) Assets,Dividends,and Expenses 
A) Liabilities,Retained Earnings,and Revenues 
B) Assets,Retained Earnings,and Expenses 
C) Liabilities,Common Stock,and Expenses 
D) Assets,Dividends,and Expenses

Question 9

The credit (right)side of an account shows an increase or decrease depending upon the type of account.

Accepted Answer

A) True 
 B)False

Question 10

The trial balance is an official financial statement.

Accepted Answer

A) True 
 B)False

Question 11

The sequence of steps used to record and report business transactions is referred to as:

Accepted Answer

A) transaction analysis. 
B) the accounting cycle. 
C) journalizing. 
D) the accounting period. 
A) transaction analysis. 
B) the accounting cycle. 
C) journalizing. 
D) the accounting period.

Question 12

Land,Cash,Office Equipment and Accounts Receivable belong to what category of accounts?

Accepted Answer

A) Liabilities 
B) Revenues 
C) Expenses 
D) Assets 
A) Liabilities 
B) Revenues 
C) Expenses 
D) Assets

Question 13

The second step in recording a transaction in the general journal is to record the:

Accepted Answer

A) explanation of the entry. 
B) account(s)to be credited and the amount(s). 
C) date of the entry. 
D) account(s)to be debited and the amount(s). 
A) explanation of the entry. 
B) account(s)to be credited and the amount(s). 
C) date of the entry. 
D) account(s)to be debited and the amount(s).

Question 14

Which of the following is NOT a liability?

Accepted Answer

A) Accounts Payable 
B) Interest Payable 
C) Rent Expense 
D) All of the above are liabilities. 
A) Accounts Payable 
B) Interest Payable 
C) Rent Expense 
D) All of the above are liabilities.

Question 15

A T-account has a $922 credit balance.This account is most likely:

Accepted Answer

A) Office Equipment. 
B) Rent Expense. 
C) Dividends. 
D) Sales Revenue. 
A) Office Equipment. 
B) Rent Expense. 
C) Dividends. 
D) Sales Revenue.

Question 16

Cash,Common Stock,and Advertising Expense have normal balances of:

Accepted Answer

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

Question 17

Once you post the transaction to the general ledger,you must go back to the general journal and fill in:

Accepted Answer

A) the date. 
B) the amount debited or credited. 
C) the posting reference column with the account number of the posting. 
D) the account name that was involved in the transaction. 
A) the date. 
B) the amount debited or credited. 
C) the posting reference column with the account number of the posting. 
D) the account name that was involved in the transaction.

Question 18

Accounts Payable,Taxes Payable,and Notes Payable:

Accepted Answer

A) increase on the debit side,decrease on the credit side and are assets. 
B) decrease on the debit side,increase on the credit side and are liabilities. 
C) increase on the debit side,decrease on the credit side and are expenses. 
D) decrease on the debit side,increase on the credit side and are revenues. 
A) increase on the debit side,decrease on the credit side and are assets. 
B) decrease on the debit side,increase on the credit side and are liabilities. 
C) increase on the debit side,decrease on the credit side and are expenses. 
D) decrease on the debit side,increase on the credit side and are revenues.

Question 19

Items such as salaries and interest that have been incurred,but not yet paid,are called:

Accepted Answer

A) accrued assets. 
B) accrued liabilities. 
C) accrued revenues. 
D) accrued notes. 
A) accrued assets. 
B) accrued liabilities. 
C) accrued revenues. 
D) accrued notes.

Question 20

The general journal was developed to organize transactions by account.

Accepted Answer

A) True 
 B)False

When the bank takes money out of a company's account,why does the bank say that they have debited that account?

Accounts that increase on the credit side are Assets,dividends and Expenses (ADE).

A company has a ten million dollar debit balance in the payable accounts.Given this information,which of the following is a TRUE statement?

The first step in recording a transaction in the general journal is to record the:

Account titles such as Marketing Expense and Depreciation Expense would be numbered starting with a 3.

Chronological order dictates the order in which transactions are journalized.

If an account's total credits are more than its total debits,then it has a positive balance.

On the trial balance,which account balances should be listed in the credit column?

The credit (right)side of an account shows an increase or decrease depending upon the type of account.

The trial balance is an official financial statement.

The sequence of steps used to record and report business transactions is referred to as:

Land,Cash,Office Equipment and Accounts Receivable belong to what category of accounts?

The second step in recording a transaction in the general journal is to record the:

Which of the following is NOT a liability?

A T-account has a $922 credit balance.This account is most likely:

Cash,Common Stock,and Advertising Expense have normal balances of:

Once you post the transaction to the general ledger,you must go back to the general journal and fill in:

Accounts Payable,Taxes Payable,and Notes Payable:

Items such as salaries and interest that have been incurred,but not yet paid,are called:

The general journal was developed to organize transactions by account.

Business, Accounting, and You

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Analyzing and Recording Business Transactions

When the bank takes money out of a company's account,why does the bank say that they have debited that account?

Accounts that increase on the credit side are Assets,dividends and Expenses (ADE).

A company has a ten million dollar debit balance in the payable accounts.Given this information,which of the following is a TRUE statement?

The first step in recording a transaction in the general journal is to record the:

Account titles such as Marketing Expense and Depreciation Expense would be numbered starting with a 3.

Chronological order dictates the order in which transactions are journalized.

If an account's total credits are more than its total debits,then it has a positive balance.

On the trial balance,which account balances should be listed in the credit column?

The credit (right)side of an account shows an increase or decrease depending upon the type of account.

The trial balance is an official financial statement.

The sequence of steps used to record and report business transactions is referred to as:

Land,Cash,Office Equipment and Accounts Receivable belong to what category of accounts?

The second step in recording a transaction in the general journal is to record the:

Which of the following is NOT a liability?

A T-account has a $922 credit balance.This account is most likely:

Cash,Common Stock,and Advertising Expense have normal balances of:

Once you post the transaction to the general ledger,you must go back to the general journal and fill in:

Accounts Payable,Taxes Payable,and Notes Payable:

Items such as salaries and interest that have been incurred,but not yet paid,are called:

The general journal was developed to organize transactions by account.

Business, Accounting, and You

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters