Question 1

A debit may signify a(n)

Accepted Answer

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

Question 2

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

Accepted Answer

A)  Prepaid Rent, debit; Rent Revenue, credit. 
B)  Cash, debit; Unearned Rent, credit. 
C)  Cash, debit; Prepaid Rent, credit. 
D)  Cash, debit; Rent Expense credit. 
A)  Prepaid Rent, debit; Rent Revenue, credit. 
B)  Cash, debit; Unearned Rent, credit. 
C)  Cash, debit; Prepaid Rent, credit. 
D)  Cash, debit; Rent Expense credit. B

Question 3

A trial balance is prepared to

Accepted Answer

A)  prove that there were no errors made in recording transactions into the journal 
B)  prove that no errors were made in posting to the ledger 
C)  prove that each account balance is correct 
D)  summarize the account balances to help prepare financial statements 
A)  prove that there were no errors made in recording transactions into the journal 
B)  prove that no errors were made in posting to the ledger 
C)  prove that each account balance is correct 
D)  summarize the account balances to help prepare financial statements D

Question 4

Liability accounts are increased by debits.

Accepted Answer

A) True 
 B)False

Question 5

The normal balance of an expense account is a credit.

Accepted Answer

A) True 
 B)False

Question 6

Even when a trial balance is in balance, there may be errors in the individual accounts.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following group of accounts are increased with a debit?

Accepted Answer

A)  assets, liabilities, owner's equity 
B)  assets, drawing, expenses 
C)  assets, revenues, expenses 
D)  assets, liabilities, revenues 
A)  assets, liabilities, owner's equity 
B)  assets, drawing, expenses 
C)  assets, revenues, expenses 
D)  assets, liabilities, revenues

Question 8

Exhibit 2-1
All nine transactions for Ralston Sports Co. for September 2011, the first month of operations, are recorded in the following T accounts:
           Refer to Exhibit 2-1. Prepare a trial balance, listing the accounts in their proper order.

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 9

When a business receives a bill from the utility company, no entry should be made until the invoice is paid.

Accepted Answer

A) True 
 B)False

Question 10

For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance total to be unequal, indicate whether the debit or credit total is higher and by how much.

Accepted Answer

\(\begin{array}{l}
\text { a. The totals

Question 11

A credit to the cash account will increase the account.

Accepted Answer

A) True 
 B)False

Question 12

The normal balance of revenue accounts is a credit.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following entries records the withdrawal of cash by Sue Martin, owner of a proprietorship, for personal use?

Accepted Answer

A)  debit Sue Martin, Capital; credit Cash 
B)  debit Sue Martin, Drawing; credit Cash 
C)  debit Salaries Expense; credit Cash 
D)  debit Salaries Expense; credit Salaries Payable 
A)  debit Sue Martin, Capital; credit Cash 
B)  debit Sue Martin, Drawing; credit Cash 
C)  debit Salaries Expense; credit Cash 
D)  debit Salaries Expense; credit Salaries Payable

Question 14

Which of the following entries records the receipt of a utility bill from the water company?

Accepted Answer

A)  debit Utilities Expense; credit Accounts Payable 
B)  debit Utilities Payable; credit Accounts Receivable 
C)  debit Accounts Payable; credit Cash 
D)  debit Accounts Payable; credit Utilities Payable 
A)  debit Utilities Expense; credit Accounts Payable 
B)  debit Utilities Payable; credit Accounts Receivable 
C)  debit Accounts Payable; credit Cash 
D)  debit Accounts Payable; credit Utilities Payable

Question 15

The process of initially recording a business transaction is called

Accepted Answer

A)  closing 
B)  posting 
C)  journalizing 
D)  balancing 
A)  closing 
B)  posting 
C)  journalizing 
D)  balancing

Question 16

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

Accepted Answer

A) True 
 B)False

Question 17

On January 31, the cash account balance was $96,750. During January, cash receipts totaled $305,000 and cash payments totaled was $375,880. Determine the cash balance on January 1.

Accepted Answer

@#LAT-DLM& + $305,000 - $375,8

Question 18

When an owner invests assets in the business, the capital account increases due to revenue being earned.

Accepted Answer

A) True 
 B)False

Question 19

When an accounts payable account is paid in cash, the owner's equity in the business decreases.

Accepted Answer

A) True 
 B)False

Question 20

The process of recording a transaction in the journal is called

Accepted Answer

A)  recording 
B)  journalizing 
C)  posting 
D)  summarizing 
A)  recording 
B)  journalizing 
C)  posting 
D)  summarizing

A debit may signify a(n)

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

A trial balance is prepared to

Liability accounts are increased by debits.

The normal balance of an expense account is a credit.

Even when a trial balance is in balance, there may be errors in the individual accounts.

Which of the following group of accounts are increased with a debit?

Exhibit 2-1 All nine transactions for Ralston Sports Co. for September 2011, the first month of operations, are recorded in the following T accounts: Refer to Exhibit 2-1. Prepare a trial balance, listing the accounts in their proper order.

When a business receives a bill from the utility company, no entry should be made until the invoice is paid.

For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance total to be unequal, indicate whether the debit or credit total is higher and by how much.

A credit to the cash account will increase the account.

The normal balance of revenue accounts is a credit.

Which of the following entries records the withdrawal of cash by Sue Martin, owner of a proprietorship, for personal use?

Which of the following entries records the receipt of a utility bill from the water company?

The process of initially recording a business transaction is called

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

On January 31, the cash account balance was $96,750. During January, cash receipts totaled $305,000 and cash payments totaled was $375,880. Determine the cash balance on January 1.

When an owner invests assets in the business, the capital account increases due to revenue being earned.

When an accounts payable account is paid in cash, the owner's equity in the business decreases.

The process of recording a transaction in the journal is called

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Analyzing Transactions

A debit may signify a(n)

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.

A trial balance is prepared to

Liability accounts are increased by debits.

The normal balance of an expense account is a credit.

Even when a trial balance is in balance, there may be errors in the individual accounts.

Which of the following group of accounts are increased with a debit?

Exhibit 2-1 All nine transactions for Ralston Sports Co. for September 2011, the first month of operations, are recorded in the following T accounts: Refer to Exhibit 2-1. Prepare a trial balance, listing the accounts in their proper order.

When a business receives a bill from the utility company, no entry should be made until the invoice is paid.

For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance total to be unequal, indicate whether the debit or credit total is higher and by how much.

A credit to the cash account will increase the account.

The normal balance of revenue accounts is a credit.

Which of the following entries records the withdrawal of cash by Sue Martin, owner of a proprietorship, for personal use?

Which of the following entries records the receipt of a utility bill from the water company?

The process of initially recording a business transaction is called

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

On January 31, the cash account balance was $96,750. During January, cash receipts totaled $305,000 and cash payments totaled was $375,880. Determine the cash balance on January 1.

When an owner invests assets in the business, the capital account increases due to revenue being earned.

When an accounts payable account is paid in cash, the owner's equity in the business decreases.

The process of recording a transaction in the journal is called

Introduction to Accounting and Business

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters