Question 1

The side of an account that increases the balance is always the same as the normal balance side.

Accepted Answer

A) True 
 B)False

Question 2

A list of all the accounts from the ledger with their ending balances is called a:

Accepted Answer

A)  normal balance.
B)  trial balance.
C)  chart of accounts.
D)  bank statement.

Question 3

The Accounts Receivable account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 4

What would be the effect on the accounts if the business received the telephone bill but did not pay it immediately?

Accepted Answer

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

Question 5

The business incurred an expense and paid it immediately.To record this:

Accepted Answer

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

Question 6

The owner of BobCats R Us paid his personal MasterCard bill using a company check.The correct entry to record the transaction is:

Accepted Answer

A)  credit Cash;debit Capital.
B)  credit Cash;debit Supplies Expense.
C)  credit Cash;debit Withdrawals.
D)  credit Cash;debit Accounts Receivable.

Question 7

A transaction that involves more than one credit or more than one debit is called a compound entry.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

An accounting device used to record increases and decreases in individual assets,liabilities,capital,revenue,expenses,and withdrawals is a(n) :

Accepted Answer

A)  chart of accounts.
B)  account.
C)  trial balance.
D)  footing.

Question 10

Which of the following is prepared first?

Accepted Answer

A)  Balance sheet
B)  Income statement
C)  Statement of owner's equity
D)  Trial balance

Question 11

Identify whether a debit or credit would be correct for each of the following account changes.Use a Dr.(debit)or Cr.(credit)in the space provided.
________ 1.Increase Delivery Van
________ 2.Increase Accounts Receivable
________ 3.Increase Accounts Payable
________ 4.Increase Salaries Expense
________ 5.Increase Service Fees Earned
________ 6.Decrease Cash
________ 7.Increase S.McCrae,Capital
________ 8.Increase S.McCrae,Withdrawals
________ 9.Increase Rent Expense
________ 10.Increase Equipment

Accepted Answer

1.Dr.
2.Dr.
3.Cr.
4....

Question 12

A credit to an asset account was posted as a credit to the Capital account.This error would cause:

Accepted Answer

A)  assets to be overstated.
B)  liabilities to be overstated.
C)  capital to be understated.
D)  Both A and C are correct.

Question 13

A credit to an asset account was posted as a credit to a revenue account.This error would cause:

Accepted Answer

A)  assets to be overstated.
B)  revenue to be overstated.
C)  expenses to be overstated.
D)  Both A and B are correct.

Question 14

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

Accepted Answer

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

Question 15

The financial statements contain debit and credit columns.

Accepted Answer

A) True 
 B)False

Question 16

A debit to a liability account was posted as a debit 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 is correct.

Question 17

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

Accepted Answer

A)  An asset would be debited and an expense debited.
B)  Expense 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.

Question 18

An account is said to have a debit balance if:

Accepted Answer

A)  the footing of the debits exceeds the footing of the credits.
B)  there are more entries on the debit side than on the credit side.
C)  its normal balance is debit without regard to the amounts or number of entries on the debit side.
D)  the last entry of the accounting period was posted on the debit side.

Question 19

Dennis,owner of Dennis's Golf Center,withdrew $900 in cash from the business.Record the transaction by:

Accepted Answer

A)  debiting Dennis,Withdrawals,$900;crediting Cash,$900.
B)  debiting Accounts Receivable,$900;crediting Cash,$900.
C)  debiting Expense,$900;crediting Cash,$900.
D)  debiting Dennis,Withdrawals,$900;crediting Dennis,Capital,$900.

Question 20

The left column of a financial statement is often used to:

Accepted Answer

A)  show debits.
B)  show credits.
C)  show totals.
D)  subtotal numbers.

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

A credit to an asset account was posted as a credit to the Capital account.This error would cause:

Correct Answer
verified

Correct Answer
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The business incurred an expense and paid it immediately.To record this:

Correct Answer
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The Accounts Receivable account is increased by a debit.

Correct Answer
verified

Dennis,owner of Dennis's Golf Center,withdrew $900 in cash from the business.Record the transaction by:

Correct Answer
verified

The owner of BobCats R Us paid his personal MasterCard bill using a company check.The correct entry to record the transaction is:

Correct Answer
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A credit to an asset account was posted as a credit to a revenue account.This error would cause:

Correct Answer
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The financial statements contain debit and credit columns.

Correct Answer
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Which of the following is prepared first?

Correct Answer
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A transaction that involves more than one credit or more than one debit is called a compound entry.

Correct Answer
verified

Correct Answer
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An accounting device used to record increases and decreases in individual assets,liabilities,capital,revenue,expenses,and withdrawals is a(n) :

Correct Answer
verified

Correct Answer
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1.Dr.
2.Dr.
3.Cr.
4....
View Answer

The side of an account that increases the balance is always the same as the normal balance side.

Correct Answer
verified

The left column of a financial statement is often used to:

Correct Answer
verified

A list of all the accounts from the ledger with their ending balances is called a:

Correct Answer
verified

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

Correct Answer
verified

What would be the effect on the accounts if the business received the telephone bill but did not pay it immediately?

Correct Answer
verified

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

Correct Answer
verified

An account is said to have a debit balance if:

Correct Answer
verified

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

A credit to an asset account was posted as a credit to the Capital account.This error would cause:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The business incurred an expense and paid it immediately.To record this:

Correct AnswerverifiedShow Answer

The Accounts Receivable account is increased by a debit.

Correct AnswerverifiedShow Answer

Dennis,owner of Dennis's Golf Center,withdrew $900 in cash from the business.Record the transaction by:

Correct AnswerverifiedShow Answer

The owner of BobCats R Us paid his personal MasterCard bill using a company check.The correct entry to record the transaction is:

Correct AnswerverifiedShow Answer

A credit to an asset account was posted as a credit to a revenue account.This error would cause:

Correct AnswerverifiedShow Answer

The financial statements contain debit and credit columns.

Correct AnswerverifiedShow Answer

Which of the following is prepared first?

Correct AnswerverifiedShow Answer

A transaction that involves more than one credit or more than one debit is called a compound entry.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An accounting device used to record increases and decreases in individual assets,liabilities,capital,revenue,expenses,and withdrawals is a(n) :

Correct AnswerverifiedShow Answer

Correct Answerverified1.Dr.2.Dr.3.Cr.4....View AnswerShow Answer

The side of an account that increases the balance is always the same as the normal balance side.

Correct AnswerverifiedShow Answer

The left column of a financial statement is often used to:

Correct AnswerverifiedShow Answer

A list of all the accounts from the ledger with their ending balances is called a:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What would be the effect on the accounts if the business received the telephone bill but did not pay it immediately?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An account is said to have a debit balance if:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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1.Dr.
2.Dr.
3.Cr.
4....
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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