Question 1

An asset would be debited and a liability credited if:

Accepted Answer

A) the business bought supplies for cash. 
B) the business incurred an expense and paid it. 
C) the business incurred an expense and did not pay for the expense immediately. 
D) the business bought equipment on account. 
A) the business bought supplies for cash. 
B) the business incurred an expense and paid it. 
C) the business incurred an expense and did not pay for the expense immediately. 
D) the business bought equipment on account.

Question 2

The side that increases the account balance, by the rules of debit and credit, is said to be the:

Accepted Answer

A) debit side. 
B) credit side. 
C) normal balance. 
D) None of these answers are correct. 
A) debit side. 
B) credit side. 
C) normal balance. 
D) None of these answers are correct.

Question 3

Accounts Payable had a normal starting balance of $800. There were debit postings of $600 and credit postings of $300 during the month. The ending balance is:

Accepted Answer

A) $500 credit. 
B) $1,000 debit. 
C) $500 debit. 
D) $1,000 credit. 
A) $500 credit. 
B) $1,000 debit. 
C) $500 debit. 
D) $1,000 credit.

Question 4

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.
-

Accepted Answer

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

Question 5

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 6

Withdrawals and expenses are reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 7

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.

Question 8

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 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.
-

Accepted Answer

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

Question 10

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 11

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 12

Accounts Receivable has a normal balance of $1,100. After collecting $800, the balance in the account is:

Accepted Answer

A) debit $300. 
B) debit $1,900. 
C) credit $300. 
D) credit $1,900. 
A) debit $300. 
B) debit $1,900. 
C) credit $300. 
D) credit $1,900.

Question 13

On which financial statement would you find the ending Capital balance?

Accepted Answer

A) Income statement 
B) Balance Sheet 
C) Statement of owner's equity 
D) Both B and C are correct. 
A) Income statement 
B) Balance Sheet 
C) Statement of owner's equity 
D) Both B and C are correct.

Question 14

The business bought supplies on account. To record this:

Accepted Answer

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

Question 15

Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?

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 16

The financial statements contain debit and credit columns.

Accepted Answer

A) True 
 B)False

Question 17

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.
-

Accepted Answer

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

Question 18

A debit to a liability account was posted to the Capital account. This error would cause:

Accepted Answer

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

Question 19

Cash is debited when the business makes a payment for supplies.

Accepted Answer

A) True 
 B)False

Question 20

What would be the effect on accounts if the business purchased office supplies for cash?

Accepted Answer

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

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

An asset would be debited and a liability credited if:

The side that increases the account balance, by the rules of debit and credit, is said to be the:

Accounts Payable had a normal starting balance of $800. There were debit postings of $600 and credit postings of $300 during the month. The ending balance is:

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. -

The left side of any account is the:

Withdrawals and expenses are reported on the income statement.

An account that would be increased by a debit is:

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

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. -

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

Which of the following is prepared last?

Accounts Receivable has a normal balance of $1,100. After collecting $800, the balance in the account is:

On which financial statement would you find the ending Capital balance?

The business bought supplies on account. To record this:

Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?

The financial statements contain debit and credit columns.

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. -

A debit to a liability account was posted to the Capital account. This error would cause:

Cash is debited when the business makes a payment for supplies.

What would be the effect on accounts if the business purchased office supplies for cash?

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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