Question 1

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

Accepted Answer

A)  An asset would be debited 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 asset would be debited and Capital credited.E) A) and C)
F) A) and B)

Question 2

Which of the following is prepared first?

Accepted Answer

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

Question 3

Debits must always equal credits.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following groups of accounts have a normal credit balance?

Accepted Answer

A)  Revenue, liabilities, and capital
B)  Assets, capital, and withdrawals
C)  Liabilities, expenses, and assets
D)  Assets, expenses, and withdrawalsE) B) and C)
F) A) and D)

Question 5

Determine the beginning owner's equity of a business having beginning assets of $10,000, ending liabilities of $5,000. During the year the liabilities decreased by $1,000.
$ ________

Accepted Answer

$4,000 [$1...

Question 6

The credit side is always the right side of the account.

Accepted Answer

A) True 
 B)False

Question 7

What would be the effect on accounts if the business provided services to a customer on account?

Accepted Answer

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

Question 8

The beginning balance in the Computers account was $2,000. The company purchased an additional $1000 worth of computers. The balance in the account is:

Accepted Answer

A)  debit of $2,000.
B)  credit of $3,000.
C)  debit of $3,000.
D)  credit of $2,000.E) C) and D)
F) B) and C)

Question 9

A credit to a liability account was posted to an expense account. This error would cause:

Accepted Answer

A)  assets to be overstated.
B)  liabilities to be overstated.
C)  expenses to be overstated.
D)  None of the above are correct.E) C) and D)
F) B) and C)

Question 10

Carrie flew to San Francisco on a business trip. The purchase price of the ticket was $422 and it was bought on account. The entry to record the transaction is:

Accepted Answer

A)  debit Accounts Payable, $422; credit Travel Expense, $422.
B)  debit Capital, $422; credit Accounts Payable, $422.
C)  debit Travel Expense, $422; credit Accounts Payable, $422.
D)  debit Travel Expense, $422; credit Cash, $422.E) A) and C)
F) C) and D)

Question 11

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

Accepted Answer

A)  assets to be understated.
B)  liabilities to be overstated.
C)  capital to be understated.
D)  None of the above are correct.E) A) and D)
F) All of the above

Question 12

A debit may signify a(n) :

Accepted Answer

A)  increase in asset accounts.
B)  increase in liability accounts.
C)  increase in the capital account.
D)  decrease in expense accounts.E) All of the above
F) C) and D)

Question 13

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.E) B) and D)
F) C) and D)

Question 14

A credit to an asset account was posted 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 C are correct.E) All of the above
F) A) and B)

Question 15

What is X-cel Company's net income or net loss if it had Revenue of $1,800, Salary Expense of $500, Utility Expense of $250, and Withdrawals of $5,000 during October?

Accepted Answer

A)  $50 net income
B)  $1,050 net loss
C)  $1,050 net income
D)  $50 net lossE) B) and D)
F) All of the above

Question 16

The right side of any account is the:

Accepted Answer

A)  debit side.
B)  credit side.
C)  ending balance.
D)  footings.E) A) and B)
F) A) and C)

Question 17

Determine the beginning owner's equity of a business having an ending owner's equity of $3,500, additional investments of $600 withdrawals of $500, and net loss of $750.
$ ________

Accepted Answer

$4,150 [$3...

Question 18

Selected accounts from the ledger of Thomas Company appear below. For each account, indicate the following:
a. In the first column at right, indicate the type of each account using the following abbreviations:
  b. In the second column, indicate the normal balance of the account by inserting a Dr. or Cr.

Accepted Answer

The answer of Selected accounts from the ledger of Thomas...

Question 19

Only one account is affected in every transaction.

Accepted Answer

A) True 
 B)False

Question 20

Office Supplies had a normal starting balance of $75. There were debit postings of $80 and credit postings of $60 during the month. The ending balance is:

Accepted Answer

A)  $55 debit.
B)  $55 credit.
C)  $95 debit.
D)  $95 credit.E) A) and C)
F) A) and B)

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

Which of the following groups of accounts have a normal credit balance?

Correct Answer
verified

The credit side is always the right side of the account.

Correct Answer
verified

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

Correct Answer
verified

A credit to a liability account was posted to an expense account. This error would cause:

Correct Answer
verified

The beginning balance in the Computers account was $2,000. The company purchased an additional $1000 worth of computers. The balance in the account is:

Correct Answer
verified

Correct Answer
verified

An account is said to have a debit balance if:

Correct Answer
verified

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

Correct Answer
verified

A debit may signify a(n) :

Correct Answer
verified

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

Correct Answer
verified

Office Supplies had a normal starting balance of $75. There were debit postings of $80 and credit postings of $60 during the month. The ending balance is:

Correct Answer
verified

Only one account is affected in every transaction.

Correct Answer
verified

Carrie flew to San Francisco on a business trip. The purchase price of the ticket was $422 and it was bought on account. The entry to record the transaction is:

Correct Answer
verified

Determine the beginning owner's equity of a business having beginning assets of $10,000, ending liabilities of $5,000. During the year the liabilities decreased by $1,000. $ ________

Correct Answer
verified
$4,000 [$1...
View Answer

Which of the following is prepared first?

Correct Answer
verified

What would be the effect on accounts if the business provided services to a customer on account?

Correct Answer
verified

Debits must always equal credits.

Correct Answer
verified

Determine the beginning owner's equity of a business having an ending owner's equity of $3,500, additional investments of $600 withdrawals of $500, and net loss of $750. $ ________

Correct Answer
verified
$4,150 [$3...
View Answer

The right side of any account is the:

Correct Answer
verified

What is X-cel Company's net income or net loss if it had Revenue of $1,800, Salary Expense of $500, Utility Expense of $250, and Withdrawals of $5,000 during October?

Correct Answer
verified

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

Which of the following groups of accounts have a normal credit balance?

Correct AnswerverifiedShow Answer

The credit side is always the right side of the account.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A credit to a liability account was posted to an expense account. This error would cause:

Correct AnswerverifiedShow Answer

The beginning balance in the Computers account was $2,000. The company purchased an additional $1000 worth of computers. The balance in the account is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An account is said to have a debit balance if:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A debit may signify a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Office Supplies had a normal starting balance of $75. There were debit postings of $80 and credit postings of $60 during the month. The ending balance is:

Correct AnswerverifiedShow Answer

Only one account is affected in every transaction.

Correct AnswerverifiedShow Answer

Carrie flew to San Francisco on a business trip. The purchase price of the ticket was $422 and it was bought on account. The entry to record the transaction is:

Correct AnswerverifiedShow Answer

Determine the beginning owner's equity of a business having beginning assets of $10,000, ending liabilities of $5,000. During the year the liabilities decreased by $1,000. $ ________

Correct Answerverified$4,000 [$1...View AnswerShow Answer

Which of the following is prepared first?

Correct AnswerverifiedShow Answer

What would be the effect on accounts if the business provided services to a customer on account?

Correct AnswerverifiedShow Answer

Debits must always equal credits.

Correct AnswerverifiedShow Answer

Determine the beginning owner's equity of a business having an ending owner's equity of $3,500, additional investments of $600 withdrawals of $500, and net loss of $750. $ ________

Correct Answerverified$4,150 [$3...View AnswerShow Answer

The right side of any account is the:

Correct AnswerverifiedShow Answer

What is X-cel Company's net income or net loss if it had Revenue of $1,800, Salary Expense of $500, Utility Expense of $250, and Withdrawals of $5,000 during October?

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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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
verified
$4,000 [$1...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
$4,150 [$3...
View Answer

Correct Answer
verified

Correct Answer
verified