Question 1

Which of the following types of accounts has a normal debit balance?

Accepted Answer

A) Withdrawals 
B) Assets 
C) Expenses 
D) All of these answers are correct. 
A) Withdrawals 
B) Assets 
C) Expenses 
D) All of these answers are correct.

Question 2

Explain the difference between expenses and withdrawals.

Accepted Answer

A withdrawal is used for recording the o

Question 3

Which of the following entries records the investment of cash by John,owner of a sole proprietorship?

Accepted Answer

A) Debit John,Capital; credit Cash 
B) Debit Cash; credit John,Withdrawals 
C) Debit John,Withdrawals; credit Cash 
D) Debit Cash; credit John,Capital 
A) Debit John,Capital; credit Cash 
B) Debit Cash; credit John,Withdrawals 
C) Debit John,Withdrawals; credit Cash 
D) Debit Cash; credit John,Capital

Question 4

Selected accounts from the ledger of Thomas Company appear below.For each account,indicate the following:
a. In the first column at right, indicate the type of each account using the following abbreviations:
Asset - A$\quad$Revenue - R$\quad$None of the above - N$\quad$Liability - L $\quad$Expense - E
b. In the second column, indicate the normal balance of the account by inserting a Dr. or Cr.
\(\begin{array} { | l | c | c | } 
\hline \text { Account } & \begin{array} { c } 
\text { Type of } \
\text { Account }
\end{array} & \text { Normal Balance } \
\hline \text { 1. Office Supplies } & \underline{\quad\quad} &\underline{\quad\quad}  \
\hline \text { 2. Accounts Receivable } & \underline{\quad\quad} &\underline{\quad\quad} \
\hline \text { 3. Fees Earned } & \underline{\quad\quad}&\underline{\quad\quad} \
\hline \text { 4. Thomas, Withdrawals } &\underline{\quad\quad}& \underline{\quad\quad}\
\hline \text { 5. Accounts Payable } & \underline{\quad\quad}&\underline{\quad\quad} \
\hline \text { 6. Salaries Expense } & \underline{\quad\quad}&\underline{\quad\quad} \
\hline \text { 7. Thomas, Capital } & \underline{\quad\quad}&\underline{\quad\quad} \
\hline \text { 8. Accounts Receivable } & \underline{\quad\quad}&\underline{\quad\quad} \
\hline \text { 9. Equipment } &\underline{\quad\quad}&\underline{\quad\quad} \
\hline \text { 10. Telephone Expense } & \underline{\quad\quad} &\underline{\quad\quad} \
\hline
\end{array}\)

Accepted Answer

The answer of Selected accounts from the ledger of Thomas...

Question 5

A credit to an asset account was posted to a revenue account.This error would cause:

Accepted Answer

A) assets to be overstated. 
B) revenue to be overstated. 
C) expenses to be overstated. 
D) Both A and C are correct. 
A) assets to be overstated. 
B) revenue to be overstated. 
C) expenses to be overstated. 
D) Both A and C are correct.

Question 6

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.
-$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Equipment } & & & \
\hline
\end{array}$

Accepted Answer

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

Question 7

Match between columns
                        Premises: Decrease Accounts Payable
Increase Service Fees
Decrease Cash
Increase Rent Expense
Decrease Accounts Receivable
Increase Salaries Expense
Increase Delivery Van
Increase S.McCrae,Withdrawals
Decrease Equipment
Increase S.McCrae,Capital

Accepted Answer

The Answer of Dr.(debit) and Cr.(credit) is...

Question 8

The left side of any account is the:

Accepted Answer

A) debit side. 
B) credit side. 
C) ending balance. 
D) footings. 
A) debit side. 
B) credit side. 
C) ending balance. 
D) footings.

Question 9

Which of the following is prepared last?

Accepted Answer

A) Balance Sheet 
B) Income Statement 
C) Statement of Owner's Equity 
D) Trial Balance 
A) Balance Sheet 
B) Income Statement 
C) Statement of Owner's Equity 
D) Trial Balance

Question 10

Accounts receivable increases on the debit side of the account.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following types of accounts has a normal credit balance?

Accepted Answer

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

Question 12

Only one account is affected in every transaction.

Accepted Answer

A) True 
 B)False

Question 13

___ 5.Cash

Accepted Answer

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

Question 14

The business provided services to a cash customer.To record this:

Accepted Answer

A) an asset is debited and a liability is credited. 
B) an asset is debited and a revenue is credited. 
C) an expense is debited and Capital is credited. 
D) None of these are correct. 
A) an asset is debited and a liability is credited. 
B) an asset is debited and a revenue is credited. 
C) an expense is debited and Capital is credited. 
D) None of these are correct.

Question 15

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

Accepted Answer

A) liabilities to be overstated. 
B) expenses to be overstated. 
C) assets to be understated. 
D) Both B and C are correct. 
A) liabilities to be overstated. 
B) expenses to be overstated. 
C) assets to be understated. 
D) Both B and C are correct.

Question 16

A list of all the accounts from the ledger with their ending balances is called a:

Accepted Answer

A) normal balance. 
B) trial balance. 
C) chart of accounts. 
D) footing. 
A) normal balance. 
B) trial balance. 
C) chart of accounts. 
D) footing.

Question 17

A compound entry is:

Accepted Answer

A) a transaction involving more than one debit and/or credit. 
B) used to prepare the trial balance. 
C) the same as the chart of accounts. 
D) found on the income statement. 
A) a transaction involving more than one debit and/or credit. 
B) used to prepare the trial balance. 
C) the same as the chart of accounts. 
D) found on the income statement.

Question 18

The owner invested personal equipment in the business.To record this transaction:

Accepted Answer

A) debit Equipment and credit Accounts Payable. 
B) debit Accounts Payable and credit Equipment. 
C) debit Equipment and credit Capital. 
D) credit Equipment and debit Capital. 
A) debit Equipment and credit Accounts Payable. 
B) debit Accounts Payable and credit Equipment. 
C) debit Equipment and credit Capital. 
D) credit Equipment and debit Capital.

Question 19

___ 6.Accounts Receivable

Accepted Answer

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

Question 20

The income statement contains:

Accepted Answer

A) liabilities. 
B) revenues. 
C) assets. 
D) Both B and C are correct. 
A) liabilities. 
B) revenues. 
C) assets. 
D) Both B and C are correct.

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

Which of the following types of accounts has a normal debit balance?

Explain the difference between expenses and withdrawals.

Which of the following entries records the investment of cash by John,owner of a sole proprietorship?

A credit to an asset account was posted to a revenue account.This error would cause:

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 Equipment

The left side of any account is the:

Which of the following is prepared last?

Accounts receivable increases on the debit side of the account.

Which of the following types of accounts has a normal credit balance?

Only one account is affected in every transaction.

___ 5.Cash

The business provided services to a cash customer.To record this:

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

A list of all the accounts from the ledger with their ending balances is called a:

A compound entry is:

The owner invested personal equipment in the business.To record this transaction:

___ 6.Accounts Receivable

The income statement contains:

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

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