Question 1

Revenues decrease owner's equity.

Accepted Answer

A) True 
 B)False

Question 2

A credit

Accepted Answer

A)  increases assets. 
B)  is on the right side. 
C)  decreases liabilities. 
D)  decreases owner's equity. 
A)  increases assets. 
B)  is on the right side. 
C)  decreases liabilities. 
D)  decreases owner's equity.

Question 3

Accounts that affect owner's equity are

Accepted Answer

A)  assets, capital, and revenue. 
B)  capital, liabilities, and expenses. 
C)  expenses, capital, and revenue. 
D)  drawing, assets, and liabilities. 
A)  assets, capital, and revenue. 
B)  capital, liabilities, and expenses. 
C)  expenses, capital, and revenue. 
D)  drawing, assets, and liabilities.

Question 4

Payment of office rent represents a decrease in

Accepted Answer

A)  a liability account. 
B)  expenses. 
C)  cash. 
D)  a revenue account. 
A)  a liability account. 
B)  expenses. 
C)  cash. 
D)  a revenue account.

Question 5

Payment of a telephone bill represents an increase in a(n)

Accepted Answer

A)  asset. 
B)  liability. 
C)  revenue. 
D)  expense. 
A)  asset. 
B)  liability. 
C)  revenue. 
D)  expense.

Question 6

To debit an account is to enter an amount on the left side of the account.

Accepted Answer

A) True 
 B)False

Question 7

Expense accounts normally have debit balances.

Accepted Answer

A) True 
 B)False

Question 8

The capital account

Accepted Answer

A)  decreases with increased revenue. 
B)  increases with increased expenses. 
C)  has a normal balance of a debit. 
D)  increases when the owner invests money in the business. 
A)  decreases with increased revenue. 
B)  increases with increased expenses. 
C)  has a normal balance of a debit. 
D)  increases when the owner invests money in the business.

Question 9

If services for the month total $3,300 in cash and $700 on account, Accounts Receivable increases $700.

Accepted Answer

A) True 
 B)False

Question 10

Services on account increase a revenue account and increase the cash account.

Accepted Answer

A) True 
 B)False

Question 11

The purchase of a supply of markers for three months should be recorded as an increase in revenue and a decrease in cash.

Accepted Answer

A) True 
 B)False

Question 12

An increase in an asset account may be offset by a(n)

Accepted Answer

A)  decrease in a liability account. 
B)  increase in an expense account. 
C)  increase in owner's equity. 
D)  decrease in owner's equity. 
A)  decrease in a liability account. 
B)  increase in an expense account. 
C)  increase in owner's equity. 
D)  decrease in owner's equity.

Question 13

Equity accounts normally have debit balances.

Accepted Answer

A) True 
 B)False

Question 14

A trial balance is taken periodically to check the equality of the debits and credits.

Accepted Answer

A) True 
 B)False

Question 15

An example of an expense is

Accepted Answer

A)  prepaid insurance. 
B)  advertising. 
C)  accounts payable. 
D)  cash. 
A)  prepaid insurance. 
B)  advertising. 
C)  accounts payable. 
D)  cash.

Question 16

A purchase of an asset on account

Accepted Answer

A)  increases cash. 
B)  decreases owner's equity. 
C)  increases assets. 
D)  decreases expenses. 
A)  increases cash. 
B)  decreases owner's equity. 
C)  increases assets. 
D)  decreases expenses.

Question 17

Match the terms with the definitions.
-A list of accounts, showing the title and balance of each account, used to prove that the debit balances equal the credit balances.

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 18

Match the terms with the definitions.
-The total dollar amounts on the debit and credit sides 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 19

The purchase of an asset on account and making a partial payment results in all of the following EXCEPT

Accepted Answer

A)  an increase in an asset account. 
B)  a decrease in the Cash account. 
C)  a balanced accounting equation. 
D)  an increase in owner's equity. 
A)  an increase in an asset account. 
B)  a decrease in the Cash account. 
C)  a balanced accounting equation. 
D)  an increase in owner's equity.

Question 20

An increase or decrease in any asset, liability, owner's equity, revenue, or expense is always accompanied by an offsetting change within the basic accounting elements.

Accepted Answer

A) True 
 B)False

Exam 3: The Double-Entry Framework

Revenues decrease owner's equity.

A credit

Accounts that affect owner's equity are

Payment of office rent represents a decrease in

Payment of a telephone bill represents an increase in a(n)

To debit an account is to enter an amount on the left side of the account.

Expense accounts normally have debit balances.

The capital account

If services for the month total $3,300 in cash and $700 on account, Accounts Receivable increases $700.

Services on account increase a revenue account and increase the cash account.

The purchase of a supply of markers for three months should be recorded as an increase in revenue and a decrease in cash.

An increase in an asset account may be offset by a(n)

Equity accounts normally have debit balances.

A trial balance is taken periodically to check the equality of the debits and credits.

An example of an expense is

A purchase of an asset on account

Match the terms with the definitions. -A list of accounts, showing the title and balance of each account, used to prove that the debit balances equal the credit balances.

Match the terms with the definitions. -The total dollar amounts on the debit and credit sides of an account.

The purchase of an asset on account and making a partial payment results in all of the following EXCEPT

An increase or decrease in any asset, liability, owner's equity, revenue, or expense is always accompanied by an offsetting change within the basic accounting elements.

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