Question 1

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

Accepted Answer

A)  single-entry accounting. 
B)  compound-entry accounting. 
C)  multiple-entry accounting. 
D)  double-entry accounting. 
A)  single-entry accounting. 
B)  compound-entry accounting. 
C)  multiple-entry accounting. 
D)  double-entry accounting.

Question 2

Connie made a purchase on account of printer paper to last for about three months; this transaction increased Supplies and decreased Accounts Payable.

Accepted Answer

A) True 
 B)False

Question 3

Match the terms with the definitions.
-A tool used to illustrate the double-entry accounting system showing the account title, left side, and right side.

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 4

can be either a debit or a credit balance.

Accepted Answer

A) is a debit footing. 
B)  is a debit balance. 
C)  is a credit balance. 
D)  is called a footing. 
A) is a debit footing. 
B)  is a debit balance. 
C)  is a credit balance. 
D)  is called a footing.

Question 5

A T account has which of the following three major parts?

Accepted Answer

A)  a title, a debit side, and a credit side 
B)  a title, a current date, and a balance 
C)  a debit side, a credit side, and a total column 
D)  a debit side, a credit side, and a balance 
A)  a title, a debit side, and a credit side 
B)  a title, a current date, and a balance 
C)  a debit side, a credit side, and a total column 
D)  a debit side, a credit side, and a balance

Question 6

The difference between the footings of an account is called the balance.

Accepted Answer

A) True 
 B)False

Question 7

Liability accounts normally have debit balances.

Accepted Answer

A) True 
 B)False

Question 8

Revenues

Accepted Answer

A)  decrease liabilities. 
B)  decrease cash. 
C)  increase expenses. 
D)  increase owner's equity. 
A)  decrease liabilities. 
B)  decrease cash. 
C)  increase expenses. 
D)  increase owner's equity.

Question 9

An investment of cash in a business by the owner

Accepted Answer

A)  increases cash. 
B)  decreases owner's equity. 
C)  appears in a liability account. 
D)  represents an obligation of the business. 
A)  increases cash. 
B)  decreases owner's equity. 
C)  appears in a liability account. 
D)  represents an obligation of the business.

Question 10

At least two accounts are affected by every transaction.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The difference between the total debits and credits to an account is called a

Accepted Answer

A)  balance. 
B)  ruling. 
C)  footing. 
D)  trial balance. 
A)  balance. 
B)  ruling. 
C)  footing. 
D)  trial balance.

Question 13

A trial balance is a formal business report.

Accepted Answer

A) True 
 B)False

Question 14

Owner's equity includes four types of accounts: Owner's Capital, Revenues, Expenses, and Owner's Drawing.

Accepted Answer

A) True 
 B)False

Question 15

Totals on the debit and credit sides to determine the balance of an account are known as

Accepted Answer

A)  rulings. 
B)  credits. 
C)  debits. 
D)  footings. 
A)  rulings. 
B)  credits. 
C)  debits. 
D)  footings.

Question 16

If services for the month total $7,000 in cash and $1,500 on account, the revenue account increases $5,500.

Accepted Answer

A) True 
 B)False

Question 17

A cash payment on a loan affects which of the following accounts?

Accepted Answer

A)  Cash and Accounts Receivable 
B)  Cash and Notes Payable 
C)  Cash and an expense account 
D)  Cash and a revenue account 
A)  Cash and Accounts Receivable 
B)  Cash and Notes Payable 
C)  Cash and an expense account 
D)  Cash and a revenue account

Question 18

The accounting equation must remain in balance.

Accepted Answer

A) True 
 B)False

Exam 3: The Double-Entry Framework

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

Connie made a purchase on account of printer paper to last for about three months; this transaction increased Supplies and decreased Accounts Payable.

Match the terms with the definitions. -A tool used to illustrate the double-entry accounting system showing the account title, left side, and right side.

can be either a debit or a credit balance.

A T account has which of the following three major parts?

The difference between the footings of an account is called the balance.

Liability accounts normally have debit balances.

Revenues

An investment of cash in a business by the owner

At least two accounts are affected by every transaction.

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

The difference between the total debits and credits to an account is called a

A trial balance is a formal business report.

Owner's equity includes four types of accounts: Owner's Capital, Revenues, Expenses, and Owner's Drawing.

Totals on the debit and credit sides to determine the balance of an account are known as

If services for the month total $7,000 in cash and $1,500 on account, the revenue account increases $5,500.

A cash payment on a loan affects which of the following accounts?

The accounting equation must remain in balance.

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

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