Question 1

Elysa paid $135 for utilities for her office; this transaction increased Cash and the expense account.

Accepted Answer

A) True 
 B)False

Question 2

Match the terms with the definitions.
-To enter an amount on the right side of an account.

Accepted Answer

A) balance 
B) credit 
C) credit balance 
D) debit 
E) debit balance
F)double-entry accounting
G)footings
H)normal balance
I)T account
J)trial balance 
A) balance 
B) credit 
C) credit balance 
D) debit 
E) debit balance
F)double-entry accounting
G)footings
H)normal balance
I)T account
J)trial balance

Question 3

Craig deposits $6,000 in an account to start a new business. He should debit Cash and credit his capital account.

Accepted Answer

A) True 
 B)False

Question 4

The balance of a T account is on the side with the larger footing.

Accepted Answer

A) True 
 B)False

Question 5

The sum of the debits must equal the sum of the credits on the trial balance.

Accepted Answer

A) True 
 B)False

Question 6

The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called complex-entry accounting.

Accepted Answer

A) True 
 B)False

Question 7

John received $350 for delivery services; this transaction increased Cash and revenue.

Accepted Answer

A) True 
 B)False

Question 8

The standard T account includes all of the following EXCEPT

Accepted Answer

A)  a credit side. 
B)  a debit side. 
C)  a title. 
D)  the current date. 
A)  a credit side. 
B)  a debit side. 
C)  a title. 
D)  the current date.

Question 9

Footings in T accounts

Accepted Answer

A)  appear after each entry. 
B)  always appear on the right side. 
C)  are unnecessary when there is only one entry. 
D)  appear only in accounts carried over from the previous accounting period. 
A)  appear after each entry. 
B)  always appear on the right side. 
C)  are unnecessary when there is only one entry. 
D)  appear only in accounts carried over from the previous accounting period.

Question 10

Prepaid Insurance is an asset account.

Accepted Answer

A) True 
 B)False

Question 11

Match the terms with the definitions.
-The normal balance of asset, expense, and drawing accounts.

Accepted Answer

A) balance 
B) credit 
C) credit balance 
D) debit 
E) debit balance
F)double-entry accounting
G)footings
H)normal balance
I)T account
J)trial balance 
A) balance 
B) credit 
C) credit balance 
D) debit 
E) debit balance
F)double-entry accounting
G)footings
H)normal balance
I)T account
J)trial balance

Question 12

Match the terms with the definitions.
-The difference between the footings of an account.

Accepted Answer

A) balance 
B) credit 
C) credit balance 
D) debit 
E) debit balance
F)double-entry accounting
G)footings
H)normal balance
I)T account
J)trial balance 
A) balance 
B) credit 
C) credit balance 
D) debit 
E) debit balance
F)double-entry accounting
G)footings
H)normal balance
I)T account
J)trial balance

Question 13

The trial balance is used in preparing financial statements.

Accepted Answer

A) True 
 B)False

Question 14

Match the terms with the definitions.
-To enter an amount of the left side of an account.

Accepted Answer

A) balance 
B) credit 
C) credit balance 
D) debit 
E) debit balance
F)double-entry accounting
G)footings
H)normal balance
I)T account
J)trial balance 
A) balance 
B) credit 
C) credit balance 
D) debit 
E) debit balance
F)double-entry accounting
G)footings
H)normal balance
I)T account
J)trial balance

Question 15

Examples of revenue accounts include all of the following EXCEPT

Accepted Answer

A)  Wages. 
B)  Sales. 
C)  Delivery Fees. 
D)  Professional Fees. 
A)  Wages. 
B)  Sales. 
C)  Delivery Fees. 
D)  Professional Fees.

Question 16

When debits equal credits for a transaction, the accounting equation is in balance.

Accepted Answer

A) True 
 B)False

Question 17

Liability, owner's capital, and revenue accounts normally have

Accepted Answer

A)  debit balances. 
B)  large balances. 
C)  negative balances. 
D)  credit balances. 
A)  debit balances. 
B)  large balances. 
C)  negative balances. 
D)  credit balances.

Question 18

Increases in owner's equity are entered as credits.

Accepted Answer

A) True 
 B)False

Question 19

Match the terms with the definitions.
-The side that increases an account.

Accepted Answer

A) balance 
B) credit 
C) credit balance 
D) debit 
E) debit balance
F)double-entry accounting
G)footings
H)normal balance
I)T account
J)trial balance 
A) balance 
B) credit 
C) credit balance 
D) debit 
E) debit balance
F)double-entry accounting
G)footings
H)normal balance
I)T account
J)trial balance

Question 20

Withdrawals of cash and other assets by the owner for personal reasons decrease owner's equity.

Accepted Answer

A) True 
 B)False

Exam 3: The Double-Entry Framework

Elysa paid $135 for utilities for her office; this transaction increased Cash and the expense account.

Match the terms with the definitions. -To enter an amount on the right side of an account.

Craig deposits $6,000 in an account to start a new business. He should debit Cash and credit his capital account.

The balance of a T account is on the side with the larger footing.

The sum of the debits must equal the sum of the credits on the trial balance.

The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called complex-entry accounting.

John received $350 for delivery services; this transaction increased Cash and revenue.

The standard T account includes all of the following EXCEPT

Footings in T accounts

Prepaid Insurance is an asset account.

Match the terms with the definitions. -The normal balance of asset, expense, and drawing accounts.

Match the terms with the definitions. -The difference between the footings of an account.

The trial balance is used in preparing financial statements.

Match the terms with the definitions. -To enter an amount of the left side of an account.

Examples of revenue accounts include all of the following EXCEPT

When debits equal credits for a transaction, the accounting equation is in balance.

Liability, owner's capital, and revenue accounts normally have

Increases in owner's equity are entered as credits.

Match the terms with the definitions. -The side that increases an account.

Withdrawals of cash and other assets by the owner for personal reasons decrease owner's equity.

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for Accounts Receivable

Accounting for Notes and Interest

Accounting for Long-Term Assets

Accounting for Partnerships

Corporations: Organization and Capital Stocks

Corporations: Earnings, Taxes, Distributions, and the Retained Earnings Statement

Corporations: Bonds

Statement of Cash Flows

Analysis of Financial Statements

Departmental Accounting

Manufacturing Accounting: The Job Order Cost System

Manufacturing Accounting: The Work Sheet and Financial Statements

Filters