Question 1

What would be the effect on accounts if the owner withdrew cash?

Accepted Answer

A) An asset would be debited and an expense credited. 
B) Withdrawals would be debited and an asset credited. 
C) An asset would be debited and a revenue credited. 
D) An asset would be debited and Capital credited. 
A) An asset would be debited and an expense credited. 
B) Withdrawals would be debited and an asset credited. 
C) An asset would be debited and a revenue credited. 
D) An asset would be debited and Capital credited.

Question 2

Withdrawals and expenses are reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 3

Extreme Home bought painting equipment on account for $2,100.The entry would include:

Accepted Answer

A) debit to Supplies Expense,$2,100; credit to Cash,$2,100. 
B) debit to Equipment,$2,100; credit to Cash,$2,100. 
C) debit to Equipment,$2,100; credit to Accounts Payable,$2,100. 
D) debit to Supplies Expense,$2,100; credit to Accounts Payable,$2,100. 
A) debit to Supplies Expense,$2,100; credit to Cash,$2,100. 
B) debit to Equipment,$2,100; credit to Cash,$2,100. 
C) debit to Equipment,$2,100; credit to Accounts Payable,$2,100. 
D) debit to Supplies Expense,$2,100; credit to Accounts Payable,$2,100.

Question 4

Wages Expense appears on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 5

A chart of accounts is below.Following is a series of transactions.Indicate for each transaction the accounts that should be debited and credited by inserting the proper account number in the space provided.
 $\begin{array}{c}
\begin{array}{lll}
\text { 111 Cash}\
\text { 112 Accounts Receivable}\
\text { 121 Delivery Equipment}\
\text { 211 Accounts Payable}\
\text { 311 C. Webster, Capital}\
\end{array}
\begin{array}{lll}
\text { 312 C. Webster, Withdrawals}\
\text { 411 Delivery Fees Earned}\
\text { 511 Salaries Expense}\
\text { 512 Rent Expense}\
\text { 513 Advertising Expense}\
\text { 514 Gas Expense}
\end{array}
\end{array}$
\(\begin{array}{lll}
 \text { Debit}& \text { Credit}&  \text { Transaction }   \
\underline{\quad\quad}&\underline{\quad\quad}& \text { 1. Invested cash in the business. } \
\underline{\quad\quad}&\underline{\quad\quad}& \text { 2. Received cash for delivery services performed. } \
\underline{\quad\quad}&\underline{\quad\quad}& \text {  3. Billed a customer for services performed.}\
\underline{\quad\quad}&\underline{\quad\quad}& \text {4. Paid accounts payable. } \
\underline{\quad\quad}&\underline{\quad\quad}& \text {5. Collected accounts receivable. } \
\underline{\quad\quad}&\underline{\quad\quad}& \text {  6. Withdrew cash for personal use.}\
\underline{\quad\quad}&\underline{\quad\quad}& \text { 7. Paid advertising expense} \ 
 \underline{\quad\quad}&\underline{\quad\quad}&\text { 8. Paid rentexpense for the month. } \
\underline{\quad\quad}&\underline{\quad\quad}& \text { 9. Purchased delivery equipment on account. } \
\underline{\quad\quad}&\underline{\quad\quad}& \text {  10. Paid salaries for the week. } \
\end{array}\)

Accepted Answer

The answer of A chart of accounts is below.Following is...

Question 6

Which of the following entries would be used to record the billing of fees earned?

Accepted Answer

A) Debit Accounts Receivable and credit Rental Fees 
B) Credit Cash and credit Rental Fees 
C) Debit Cash and credit Rental Fees 
D) Debit Cash and debit Rental Fees 
A) Debit Accounts Receivable and credit Rental Fees 
B) Credit Cash and credit Rental Fees 
C) Debit Cash and credit Rental Fees 
D) Debit Cash and debit Rental Fees

Question 7

A debit to an asset account was posted to a liability account.This error would cause:

Accepted Answer

A) assets to be understated. 
B) liabilities to be overstated. 
C) capital to be overstated. 
D) None of the above are correct. 
A) assets to be understated. 
B) liabilities to be overstated. 
C) capital to be overstated. 
D) None of the above are correct.

Question 8

Given the following list of accounts with normal balances,what are the trial balance totals of the debits and credits? $\begin{array} {| l | r |} 
\hline \text { Cash } & \$ 1000 \
\hline \text { Equipment } & 500 \
\hline \text { Accounts Payable } & 350 \
\hline \text { Capital } & 900 \
\hline \text { Service Fees } & 1000 \
\hline \text { Salaries Expense } & 750 \
\hline
\end{array}$

Accepted Answer

A) $3,250 debit,$3,250 credit 
B) $1,125 debit,$1,125 credit 
C) $4,500 debit,$4,500 credit 
D) $2,250 debit,$2,250 credit 
A) $3,250 debit,$3,250 credit 
B) $1,125 debit,$1,125 credit 
C) $4,500 debit,$4,500 credit 
D) $2,250 debit,$2,250 credit

Question 9

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, and in Column 3 the financial statement that the account appears upon
-$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Postage Expense } & & & \
\hline
\end{array}$

Accepted Answer

The answer of For each of the following, identify in...

Question 10

___ 4.Legal Fees

Accepted Answer

A) Dr.(debit) 
B) Cr.(credit) 
A) Dr.(debit) 
B) Cr.(credit)

Question 11

Equipment is an example of a liability.

Accepted Answer

A) True 
 B)False

Question 12

Carrie flew to San Francisco on a business trip.The purchase price of the ticket was $422 and it was bought on account.The entry to record the transaction is:

Accepted Answer

A) debit Accounts Payable,$422; credit Travel Expense,$422. 
B) debit Capital,$422; credit Accounts Payable,$422. 
C) debit Travel Expense,$422; credit Accounts Payable,$422. 
D) debit Travel Expense,$422; credit Cash,$422. 
A) debit Accounts Payable,$422; credit Travel Expense,$422. 
B) debit Capital,$422; credit Accounts Payable,$422. 
C) debit Travel Expense,$422; credit Accounts Payable,$422. 
D) debit Travel Expense,$422; credit Cash,$422.

Question 13

The chart of accounts:

Accepted Answer

A) is a numbered list of all of the business' accounts. 
B) allows accounts to be located quickly. 
C) can be expanded as the business grows. 
D) All of the above are correct. 
A) is a numbered list of all of the business' accounts. 
B) allows accounts to be located quickly. 
C) can be expanded as the business grows. 
D) All of the above are correct.

Question 14

Given the following list of accounts with normal balances,what are the trial balance totals of the debits and credits? $\begin{array} {| l | r| } 
\hline \text { Cash } & \$ 1,100 \
\hline \text { Accounts Receivable } & 800 \
\hline \text { Capital } & 1,900 \
\hline \text { Withdrawals } & 500 \
\hline \text { Service Fees } & 1,000 \
\hline \text { Rent Expense } & 500 \
\hline
\end{array}$

Accepted Answer

A) $2,900 debit,$2,900 credit 
B) $3,900 debit,$3,900 credit 
C) $2,000 debit,$2,000 credit 
D) $1,200 debit,$1,200 credit 
A) $2,900 debit,$2,900 credit 
B) $3,900 debit,$3,900 credit 
C) $2,000 debit,$2,000 credit 
D) $1,200 debit,$1,200 credit

Question 15

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, and in Column 3 the financial statement that the account appears upon.
-$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Cleaning Fees Earned } & & & \
\hline
\end{array}$

Accepted Answer

The answer of For each of the following, identify in...

Question 16

A debit may signify a(n):

Accepted Answer

A) increase in asset accounts. 
B) increase in liability accounts. 
C) increase in the capital account. 
D) decrease in expense accounts. 
A) increase in asset accounts. 
B) increase in liability accounts. 
C) increase in the capital account. 
D) decrease in expense accounts.

Question 17

A formal account that has columns for date,explanation,post reference,debit,and credit is called the:

Accepted Answer

A) T account. 
B) standard account form. 
C) ledger. 
D) chart of accounts. 
A) T account. 
B) standard account form. 
C) ledger. 
D) chart of accounts.

Question 18

Accounts Receivable indicates amounts owed to us by our clients or customers.

Accepted Answer

A) True 
 B)False

Question 19

The debit side of all accounts decreases the balance and the credit side increases all accounts.

Accepted Answer

A) True 
 B)False

Question 20

An account that would be increased by a debit is:

Accepted Answer

A) Cash. 
B) Fees Earned. 
C) Capital. 
D) Accounts Payable. 
A) Cash. 
B) Fees Earned. 
C) Capital. 
D) Accounts Payable.

Exam 2: Debits and Credits: Analyzing and Recording Business Transactions

What would be the effect on accounts if the owner withdrew cash?

Withdrawals and expenses are reported on the income statement.

Extreme Home bought painting equipment on account for $2,100.The entry would include:

Wages Expense appears on the balance sheet.

Which of the following entries would be used to record the billing of fees earned?

A debit to an asset account was posted to a liability account.This error would cause:

Given the following list of accounts with normal balances,what are the trial balance totals of the debits and credits? Cash \ 1000 Equipment 500 Accounts Payable 350 Capital 900 Service Fees 1000 Salaries Expense 750

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, and in Column 3 the financial statement that the account appears upon - Column 1 Column 2 Column 3 Postage Expense

___ 4.Legal Fees

Equipment is an example of a liability.

Carrie flew to San Francisco on a business trip.The purchase price of the ticket was $422 and it was bought on account.The entry to record the transaction is:

The chart of accounts:

Given the following list of accounts with normal balances,what are the trial balance totals of the debits and credits? Cash \ 1,100 Accounts Receivable 800 Capital 1,900 Withdrawals 500 Service Fees 1,000 Rent Expense 500

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, and in Column 3 the financial statement that the account appears upon. - Column 1 Column 2 Column 3 Cleaning Fees Earned

A debit may signify a(n):

A formal account that has columns for date,explanation,post reference,debit,and credit is called the:

Accounts Receivable indicates amounts owed to us by our clients or customers.

The debit side of all accounts decreases the balance and the credit side increases all accounts.

An account that would be increased by a debit is:

Accounting Concepts and Procedures

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, plant, equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters