Question 1

Accounts receivable decrease on the debit side of the account.

Accepted Answer

A) True 
 B)False

Question 2

Accounts Payable is an asset account that is increased on the credit side.

Accepted Answer

A) True 
 B)False

Question 3

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 of the account is:

Accepted Answer

A) $55 debit. 
B) $55 credit. 
C) $95 debit. 
D) $95 credit. 
A) $55 debit. 
B) $55 credit. 
C) $95 debit. 
D) $95 credit.

Question 4

A credit may signify a(n):

Accepted Answer

A) increase in assets. 
B) decrease in liabilities. 
C) increase in revenue. 
D) increase in withdrawals. 
A) increase in assets. 
B) decrease in liabilities. 
C) increase in revenue. 
D) increase in withdrawals.

Question 5

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

Accepted Answer

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

Question 6

A T account is used for demonstration purposes.

Accepted Answer

A) True 
 B)False

Question 7

The owner invested personal equipment in the business.To record this transaction:

Accepted Answer

A) debit Equipment and credit Revenue. 
B) debit Accounts Payable and credit Equipment. 
C) debit Equipment and credit Capital. 
D) credit Equipment and debit Capital. 
A) debit Equipment and credit Revenue. 
B) debit Accounts Payable and credit Equipment. 
C) debit Equipment and credit Capital. 
D) credit Equipment and debit Capital.

Question 8

The beginning balance in the Capital account would appear on which financial statement?

Accepted Answer

A) Statement of Owner's Equity 
B) Balance Sheet 
C) Income Statement 
D) None of these answers is correct. 
A) Statement of Owner's Equity 
B) Balance Sheet 
C) Income Statement 
D) None of these answers is correct.

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

Accepted Answer

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

Question 10

Cash has a normal balance of $1,100.After collecting $800,the balance in the account is:

Accepted Answer

A) debit $300. 
B) debit $1,900. 
C) credit $300. 
D) credit $1,900. 
A) debit $300. 
B) debit $1,900. 
C) credit $300. 
D) credit $1,900.

Question 11

A chart of accounts is below.Following is a series of transactions.Indicate for each transaction the accounts that should be debited and credited by inserting the proper account number in the space provided.

Accepted Answer

The answer of A chart of accounts is below.Following is...

Question 12

The income statement contains:

Accepted Answer

A) liabilities. 
B) revenues. 
C) assets. 
D) Both B and C are correct. 
A) liabilities. 
B) revenues. 
C) assets. 
D) Both B and C are correct.

Question 13

The following transactions occurred during June for Campus Cycle Shop.Record the transactions below in the T accounts.Place the letter of the transaction next to the entry.Foot and calculate the ending balances of the T accounts where appropriate.
a.Tyler invested $6500 in the bike service from his personal savings account.
b.Bought office equipment for cash,$900.
c.Performed bike service for a customer on account,$1,000.
d.Company cell phone bill received,but not paid,$80.
e.Collected $500 from customer in transaction c.
f.Tyler withdrew $300 for personal use.

Accepted Answer

The answer of The following transactions occurred during June for...

Question 14

Determine the beginning owner's equity of a business having beginning assets of $9,000 and ending liabilities of $3,000.During the year the liabilities decreased by $1,000.
$ ________

Accepted Answer

$5,000 [$9

Question 15

Net income or net loss for a period is calculated by the following formula:

Accepted Answer

A) total revenues - total liabilities. 
B) total revenues - total expenses - total withdrawals + assets. 
C) total revenues - total expenses. 
D) total revenues - total expenses + capital. 
A) total revenues - total liabilities. 
B) total revenues - total expenses - total withdrawals + assets. 
C) total revenues - total expenses. 
D) total revenues - total expenses + capital.

Question 16

A chart of accounts:

Accepted Answer

A) is set up in alphabetical order. 
B) is a list of customer accounts. 
C) is a listing of all the accounts used by a company. 
D) All of the above are correct. 
A) is set up in alphabetical order. 
B) is a list of customer accounts. 
C) is a listing of all the accounts used by a company. 
D) All of the above are correct.

Question 17

Accounts Payable indicates monies owed to us by our clients or customers.

Accepted Answer

A) True 
 B)False

Question 18

Why is Revenue increased on the Credit side? (Explain as it pertains to the expanded accounting equation and its relationship to Owner's Equity. )

Accepted Answer

Revenue is an increa

Question 19

Cash is credited when the business makes a payment for supplies.

Accepted Answer

A) True 
 B)False

Question 20

A ledger:

Accepted Answer

A) includes all company accounts and their balances. 
B) can replace the financial statements. 
C) is the same as a chart of accounts. 
D) is known as a worksheet. 
A) includes all company accounts and their balances. 
B) can replace the financial statements. 
C) is the same as a chart of accounts. 
D) is known as a worksheet.

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

Accounts receivable decrease on the debit side of the account.

Accounts Payable is an asset account that is increased on the credit side.

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 of the account is:

A credit may signify a(n):

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 Lawn Care Fees Earned

A T account is used for demonstration purposes.

The owner invested personal equipment in the business.To record this transaction:

The beginning balance in the Capital account would appear on which financial statement?

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 Salaries Expense

Cash has a normal balance of $1,100.After collecting $800,the balance in the account is:

A chart of accounts is below.Following is a series of transactions.Indicate for each transaction the accounts that should be debited and credited by inserting the proper account number in the space provided.

The income statement contains:

Determine the beginning owner's equity of a business having beginning assets of $9,000 and ending liabilities of $3,000.During the year the liabilities decreased by $1,000. $ ________

Net income or net loss for a period is calculated by the following formula:

A chart of accounts:

Accounts Payable indicates monies owed to us by our clients or customers.

Why is Revenue increased on the Credit side? (Explain as it pertains to the expanded accounting equation and its relationship to Owner's Equity. )

Cash is credited when the business makes a payment for supplies.

A ledger:

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