Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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. 
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 3

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. 
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 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

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. 
A) Withdrawals 
B) Assets 
C) Expenses 
D) All of these answers are correct.

Question 7

The left side of any account is the:

Accepted Answer

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

Question 8

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

Question 9

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. 
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 10

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

Accepted Answer

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

Question 11

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. 
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 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 
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

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 14

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. 
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.

Question 15

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. 
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 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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. 
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 19

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. 
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 20

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...

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

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

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

An asset would be debited and a liability credited if:

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. - Column 1 Column 2 Column 3 Building

Expenses are recorded when incurred.

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

The left side of any account is the:

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:

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

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

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

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

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. - Column 1 Column 2 Column 3 Cleaning Fees Earned

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:

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

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

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

The ledger is:

The chart of accounts:

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. - Column 1 Column 2 Column 3 Installation Fees Earned

Accounting Concepts and Procedures

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters