Exam 2: Transaction Analysis

The normal balance of Accounts Receivable is a __________because it is a(n)_________ account.

The normal balance for any account is always the side of the account (debit or credit)where the largest amount is found.

An account with a normal debit balance indicates that the account is a liability account.

A trial balance showed total debits of $540,000 and total credits of $450,000. This discrepancy is most likely due to which type of error?

The payment of salaries to employees would:

George P. Smythe Co. purchased equipment from Chester Grahame Co for $200,000, paying 10% as a down payment and financing the remainder. The proper journal entry for this event is:

A company paid cash for an amount owed to a creditor. This transaction decreased cash and:

An account is increased by a debit and has a normal balance of a debit. This account is:

An account will have a debit balance if:

A business transaction has occurred when:

Consider the following transactions: I. Borrowed cash on a note payable, $80,000 II. Provided services on account, $10,000 III. Received cash from a customer as payment on account, $8,000 IV. Received a utility bill, $1,200 Total assets would be:

The debt created by a business when it makes a purchase on account is a(n):

What is the first step in the journalizing process?

Which type of account is increased when a company records an increase in debt?

Double-entry accounting means that each transaction:

Revenues are recorded when:

The normal balance of the Dividends account is a ___________ because it decreases __________.

Prepaid expense accounts appear on:

A company performed services for a customer on account. This transaction increased assets and:

The purchase of office equipment for cash would increase both an asset and a liability account.