Question 1

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.

Accepted Answer

The answer of Under a double-entry system, show how the...

Question 2

Liabilities normally show

Accepted Answer

A)  credit balances. 
B)  debit balances. 
C)  debit and credit balances. 
D)  debit or credit balances.

Question 3

When Accounts Payable account is debited, it indicates

Accepted Answer

A)  a decrease in the amount owed to creditors. 
B)  an increase in the amount owed to creditors. 
C)  an increase in the amount owed by customers. 
D)  a decrease in the amount owed by customers.

Question 4

Which of the following statements is correct?

Accepted Answer

A)  Debits increase assets. 
B)  Credits increase assets. 
C)  Credits decrease liabilities. 
D)  Debits decrease both liabilities and assets.

Question 5

At October 1, 2020, Medina Co. had an accounts payable balance of $50,000. During the month, the company made purchases on account of $35,000 and made payments on account of $48,000. At October 31, 2020, the accounts payable balance is

Accepted Answer

A)  $37,000. 
B)  $33,000. 
C)  $63,000. 
D)  $133,000.

Question 6

Camper Van Company purchased equipment for $2,300 cash. As a result of this event,

Accepted Answer

A)  owner's equity decreased by $2,300. 
B)  total assets increased by $2,300. 
C)  total assets remained unchanged. 
D)  owner's equity decreased and total assets increased by $2,300.

Question 7

During February 2020, its first month of operations, the owner of Solcist Co. invested cash of $50,000. Solcist had cash revenues of $16,000 and paid expenses of $21,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 29?

Accepted Answer

A)  $5,000 credit 
B)  $5,000 debit 
C)  $45,000 debit 
D)  $55,000 debit

Question 8

On May 1, 2020, Anzola Company. reported a cash balance of $6,000. During May, Anzola deposited $12,000. Total disbursements were $7,000. The cash balance at the end of May is a

Accepted Answer

A)  $18,000 debit balance. 
B)  $11,000 debit balance. 
C)  $25,000 credit balance. 
D)  $11,000 credit balance.

Question 9

For each of the following accounts, indicate the effects of (a) a debit and (b) the normal account balance.
 1. Notes Payable
 2. Cash
 3. Salaries and Wages Expense
 4. Service Revenue
 5. Equipment
 6. Owner's Capital

Accepted Answer

The answer of For each of the following accounts, indicate...

Question 10

An account is an individual accounting record of increases and decreases in specific

Accepted Answer

A)  liabilities. 
B)  assets. 
C)  expenses. 
D)  assets, liabilities, and owner's equity items.

Question 11

Which one of the following is not a part of an account?

Accepted Answer

A)  Credit side 
B)  Trial balance 
C)  Debit side 
D)  Title

Question 12

An account consists of

Accepted Answer

A)  a title, a debit balance, and a credit balance. 
B)  a title, a left side, and a debit balance. 
C)  a title, a debit side, and a credit side. 
D)  a title, a right side, and a debit balance.

Question 13

A service performed on account increases both assets and liabilities.

Accepted Answer

A) True 
 B)False

Question 14

In October, Panda Bear Childcare collected payment from customers billed in September for September childcare services. The receipt of the cash is recorded with a debit to Cash and a credit to

Accepted Answer

A)  Service Revenue. 
B)  Accounts Payable. 
C)  Accounts Receivable. 
D)  Owner's Capital.

Question 15

Which of the following statements is false?

Accepted Answer

A)  Revenues increase owner's equity. 
B)  Revenues have normal credit balances. 
C)  Revenues are a positive factor in the computation of net income. 
D)  Revenues are increased by debits.

Question 16

For the accounts listed below, indicate if the normal balance of the account is a debit or credit.

Accepted Answer

The answer of For the accounts listed below, indicate if...

Question 17

Indicate the account debited and the account credited for each date:

Accepted Answer

The answer of Indicate the account debited and the account...

Question 18

On January 4, Ballard Industries purchased supplies of $4,000 on credit. Ballard will debit Supplies and

Accepted Answer

A)  credit Accounts Payable. 
B)  credit Accounts Receivable. 
C)  credit Cash. 
D)  credit Supplies Expense.

Question 19

The investment of cash in the business by the owner is recorded with a debit to Owner's Capital.

Accepted Answer