Question 1

When the owner invests personal equipment in the business,cash is decreased.

Accepted Answer

A) True 
 B)False

Question 2

The beginning balance in Cash was $4,000.Additional cash of $2,000 was received.Checks were written totaling $2,500.The ending balance in cash is:

Accepted Answer

A)  $2,000.
B)  $6,000.
C)  $4,500.
D)  $3,500.

Question 3

In accrual basis accounting,revenues are only recorded when cash is received.

Accepted Answer

A) True 
 B)False

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

Accepted Answer

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

Question 5

Expenses are recorded when incurred.

Accepted Answer

A) True 
 B)False

Question 6

What would be the effect on the accounts if the owner withdrew cash?

Accepted Answer

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

Question 7

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

Accepted Answer

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

Question 8

Extreme Home bought painting equipment on account for $3,000.The entry would include:

Accepted Answer

A)  debit to Supplies Expense,$3,000;credit to Cash,$3,000.
B)  debit to Equipment,$3,000;credit to Cash,$3,000
C)  debit to Equipment,$3,000;credit to Accounts Payable,$3,000.
D)  debit to Supplies Expense,$3,000;credit to Accounts Payable,$3,000.

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.
-$$\begin{array} { | l | c | c | c | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 \
\hline \text { Installation Fees Earned } & & & \
\hline
\end{array}$$

Accepted Answer

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

Question 10

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 bought equipment on account.
D)  None of these is correct.

Question 11

Accounts Receivable indicates amounts owed to us by our clients or creditors.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following entries would be used to record the billing of fees earned?

Accepted Answer

A)  Debit Accounts Receivable and credit Rental Fees
B)  Credit Cash and credit Rental Fees
C)  Debit Accounts Payable and credit Rental Fees
D)  Debit Cash and debit Rental Fees

Question 13

The business provided services to a credit 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 is correct.

Question 14

The ledger is:

Accepted Answer

A)  a group of accounts that records data from business transactions.
B)  a tool used to insure that all accounts have normal balances.
C)  a chronological record of the day's transactions.
D)  a tool used to ensure that debits equal credits.

Question 15

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.

Question 16

Which of the following accounts would be increased by a debit?

Accepted Answer

A)  Cash
B)  Accounts Payable
C)  Capital
D)  Service Revenue

Question 17

The chart of accounts:

Accepted Answer

A)  is a numbered list of all of the business's accounts.
B)  allows accounts to be located quickly.
C)  can be expanded as the business grows.
D)  All of the above are correct.

Question 18

Which of the statements of the rules of debit and credit is true?

Accepted Answer

A)  Decrease Accounts Receivable with a credit and the normal balance is a credit.
B)  Increase Accounts Payable with a credit and the normal balance is a credit.
C)  Increase Revenue with a debit and the normal balance is a debit.
D)  Decrease Cash with a debit and the normal balance is a debit.

Question 19

The left side of any account is the:

Accepted Answer

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

Question 20

Carrie flew to San Francisco on a business trip that will be reimbursed by her employer.The purchase price of the ticket was $500 and it was bought on account.The entry to record the transaction is:

Accepted Answer

A)  debit Accounts Payable,$500;credit Travel Expense,$500.
B)  debit Capital,$500;credit Accounts Payable,$500.
C)  debit Travel Expense,$500;credit Accounts Payable,$500.
D)  debit Travel Expense,$500;credit Cash,$500.

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

Which of the following accounts would be increased by a debit?

Correct Answer
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Which of the following entries would be used to record the billing of fees earned?

Correct Answer
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The business provided services to a credit customer.To record this:

Correct Answer
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The chart of accounts:

Correct Answer
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An asset would be debited and a liability credited if:

Correct Answer
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Correct Answer
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The ledger is:

Correct Answer
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Expenses are recorded when incurred.

Correct Answer
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In accrual basis accounting,revenues are only recorded when cash is received.

Correct Answer
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Accounts Receivable indicates amounts owed to us by our clients or creditors.

Correct Answer
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Correct Answer
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What would be the effect on the accounts if the owner withdrew cash?

Correct Answer
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Extreme Home bought painting equipment on account for $3,000.The entry would include:

Correct Answer
verified

Carrie flew to San Francisco on a business trip that will be reimbursed by her employer.The purchase price of the ticket was $500 and it was bought on account.The entry to record the transaction is:

Correct Answer
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When the owner invests personal equipment in the business,cash is decreased.

Correct Answer
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The beginning balance in Cash was $4,000.Additional cash of $2,000 was received.Checks were written totaling $2,500.The ending balance in cash is:

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

Correct Answer
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The left side of any account is the:

Correct Answer
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Which of the statements of the rules of debit and credit is true?

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

Which of the following accounts would be increased by a debit?

Correct AnswerverifiedShow Answer

Which of the following entries would be used to record the billing of fees earned?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The chart of accounts:

Correct AnswerverifiedShow Answer

An asset would be debited and a liability credited if:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The ledger is:

Correct AnswerverifiedShow Answer

Expenses are recorded when incurred.

Correct AnswerverifiedShow Answer

In accrual basis accounting,revenues are only recorded when cash is received.

Correct AnswerverifiedShow Answer

Accounts Receivable indicates amounts owed to us by our clients or creditors.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What would be the effect on the accounts if the owner withdrew cash?

Correct AnswerverifiedShow Answer

Extreme Home bought painting equipment on account for $3,000.The entry would include:

Correct AnswerverifiedShow Answer

Carrie flew to San Francisco on a business trip that will be reimbursed by her employer.The purchase price of the ticket was $500 and it was bought on account.The entry to record the transaction is:

Correct AnswerverifiedShow Answer

When the owner invests personal equipment in the business,cash is decreased.

Correct AnswerverifiedShow Answer

The beginning balance in Cash was $4,000.Additional cash of $2,000 was received.Checks were written totaling $2,500.The ending balance in cash is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The left side of any account is the:

Correct AnswerverifiedShow Answer

Which of the statements of the rules of debit and credit is true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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