Question 1

Increases in owner's equity are recorded with credits.

Accepted Answer

A) True 
 B)False

Question 2

An accounting system that involves recording the effects of each transaction as debits and credits is

Accepted Answer

A)  completing one T account. 
B)  the double-entry system. 
C)  preparing financial statements. 
D)  analyzing a business transaction.

Question 3

The normal balance of an account is the

Accepted Answer

A)  increase side of the account. 
B)  decrease side of the account. 
C)  the left side of the account. 
D)  the right side of the account.

Question 4

Cash
Accounts Receivable
Office Equipment
Office Supplies
Accounts Payable
Brandon Phipps, Capital
Brandon Phipps, Drawing
Fees Income
Rent Expense
Salaries Expense
Utilities Expense

Read each of the following transactions. Determine the accounts to be debited and credited.

-Performed services for cash

Accepted Answer

The answer of Cash
Accounts Receivable
Office Equipment
Office Supplies
Accounts Payable
Brandon Phipps, Capital
Brandon...

Question 5

Received $1,200 in cash for copy services

Accepted Answer

The answer of Received $1,200 in cash for copy services...

Question 6

Cash
Accounts Receivable
Office Equipment
Office Supplies
Accounts Payable
Brandon Phipps, Capital
Brandon Phipps, Drawing
Fees Income
Rent Expense
Salaries Expense
Utilities Expense

Read each of the following transactions. Determine the accounts to be debited and credited.

-Performed services on credit

Accepted Answer

The answer of Cash
Accounts Receivable
Office Equipment
Office Supplies
Accounts Payable
Brandon Phipps, Capital
Brandon...

Question 7

A(n) ____________________ account is used to record increases in owner's equity from the sale of goods or services.

Accepted Answer

The answer of A(n) ____________________ account is used to record...

Question 8

If a trial balance is not in balance (the Debit and Credit columns are not equal), a logical first step is to

Accepted Answer

A)  check each account balance calculation. 
B)  check each account balance in the general ledger to the trial balance number. 
C)  check the addition of each column. 
D)  divide the difference by either 9 or 2.

Question 9

The accounts and balances for Paw Prints Pet Sitters on November 1 are provided below. $$\begin{array} { l r l } 
\text { Cash } & 19,450 & \text { Fees Income } &-0-\
\text { Accounts Receivable } & 890 & \text { Rent Expense } &-0-\
\text { Office Equipment } & 2,300 & \text { Utilities Expense }&-0- \
\text { Supplies } & 250 & \text { Salaries Expense }&-0- \
\text { Accounts Payable } & 1,400 & \
\text { Kelly Connor, Capital } & 21,490 & \
\text { Kelly Connor, Drawing } & - 0 - &
\end{array}$$ The following transactions occurred during the month of November.
a. Collected $350 from credit customers
b. Issued a check for $700 for rent
c. Paid $1,900 for salaries
d. The owner withdrew $500 in cash for personal expenses
e. Issued a check for $200 to pay the monthly utility bill
f. Received $2,845 in cash for services performed
g. Purchased office equipment for $1,350 on credit
-Using the information shown, prepare a trial balance for Paw Prints Pet Sitters at November 30, 2013.

Accepted Answer

The answer of The accounts and balances for Paw Prints...

Question 10

Financial statements are prepared after the trial balance is prepared.

Accepted Answer

A) True 
 B)False

Question 11

The normal balance side of a liability account is the debit side.

Accepted Answer

A) True 
 B)False

Question 12

When developing a chart of accounts, the highest block of numbers is assigned to asset accounts.

Accepted Answer

A) True 
 B)False

Question 13

After transactions for the period have been recorded, a trial balance is prepared to verify the equality of total debits and credits.

Accepted Answer

A) True 
 B)False

Question 14

The ending capital balance appears on which of the following statement(s)?

Accepted Answer

A)  Statement of owner's equity 
B)  Income Statement 
C)  Statement of owner's equity and balance sheet 
D)  Statement of owner's equity and income statement

Question 15

A column of figures is added and the total is entered in small pencil figures called a(n) ____________________.

Accepted Answer

The answer of A column of figures is added and...

Question 16

An account whose balance is transferred to another account at the end of an accounting period is a temporary account.

Accepted Answer

A) True 
 B)False

Question 17

Another name for permanent accounts is real accounts.

Accepted Answer

A) True 
 B)False

Question 18

Purchased office equipment on credit

Accepted Answer

The answer of Purchased office equipment on credit...

Question 19

A business pays a creditor on account. The journal entry to record this transaction is:

Accepted Answer

A)  Debit Accounts Payable; Credit Cash 
B)  Debit Accounts Receivable; Credit Accounts Payable 
C)  Debit Cash; Credit Accounts Payable 
D)  Debit Accounts Receivable; Credit to Cash

Question 20

Which of the following would result in an error when preparing the Trial Balance?

Accepted Answer

A)  Placing the Withdrawal account balance in the Debit column 
B)  Placing a Revenue account balance in the Credit column 
C)  Placing the balance in Prepaid Rent in the Credit column 
D)  Placing the Accounts Payable balance in the Credit column

Exam 3: Analyzing Business Transactions Using T Accounts

Increases in owner's equity are recorded with credits.

An accounting system that involves recording the effects of each transaction as debits and credits is

The normal balance of an account is the

Received $1,200 in cash for copy services

A(n) ____________________ account is used to record increases in owner's equity from the sale of goods or services.

If a trial balance is not in balance (the Debit and Credit columns are not equal) , a logical first step is to

Financial statements are prepared after the trial balance is prepared.

The normal balance side of a liability account is the debit side.

When developing a chart of accounts, the highest block of numbers is assigned to asset accounts.

After transactions for the period have been recorded, a trial balance is prepared to verify the equality of total debits and credits.

The ending capital balance appears on which of the following statement(s) ?

A column of figures is added and the total is entered in small pencil figures called a(n) ____________________.

An account whose balance is transferred to another account at the end of an accounting period is a temporary account.

Another name for permanent accounts is real accounts.

Purchased office equipment on credit

A business pays a creditor on account. The journal entry to record this transaction is:

Which of the following would result in an error when preparing the Trial Balance?