Question 1

Which of the following accounts normally has a debit balance?

Accepted Answer

A)  Liabilities 
B)  Owners' equity 
C)  Revenues 
D)  Expenses 
A)  Liabilities 
B)  Owners' equity 
C)  Revenues 
D)  Expenses

Question 2

Income and expenses affect the profits made by an entity. Which of the following statements best describes how this fact is consistent with the accounting equation and the debit and credit rule?

Accepted Answer

A)  Income increases equity and so should be a debit and expenses decrease equity and so should be a credit. 
B)  Income increases equity and so should be a credit and expenses decrease equity and so should be a debit. 
C)  Income decreases equity and so should be a debit and expenses increase equity and so should be a credit. 
D)  Income and expenses both affect equity and so both should be a credit if they are increasing. 
A)  Income increases equity and so should be a debit and expenses decrease equity and so should be a credit. 
B)  Income increases equity and so should be a credit and expenses decrease equity and so should be a debit. 
C)  Income decreases equity and so should be a debit and expenses increase equity and so should be a credit. 
D)  Income and expenses both affect equity and so both should be a credit if they are increasing.

Question 3

Discuss the role that journals, the ledger, debits and credits and the trial balance play in the traditional approach to recording transactions (events).

Accepted Answer

The journals and ledger play an importan

Question 4

An accounting journal is a book of original entry that is prepared to record transactions in chronological order.

Accepted Answer

A) True 
 B)False

Question 5

The balance sheet lists final account balances for which of the following elements of financial statements?

Accepted Answer

A)  Assets and liabilities 
B)  Income and expenses 
C)  Assets, liabilities and owners' equity 
D)  Income, expenses and profit and loss 
A)  Assets and liabilities 
B)  Income and expenses 
C)  Assets, liabilities and owners' equity 
D)  Income, expenses and profit and loss

Question 6

On 1 August XYZ Ltd issued $240 000 shares to shareholders in exchange for cash of $100 000 and land of $140 000. This transaction would be recorded in the general ledger as:

Accepted Answer

A)  a debit to cash and land and a credit to share capital. 
B)  a credit to cash and land and a debit to share capital. 
C)  an increase to cash and land and a decrease to share capital. 
D)  a decrease to cash, and an increase to land and share capital. 
A)  a debit to cash and land and a credit to share capital. 
B)  a credit to cash and land and a debit to share capital. 
C)  an increase to cash and land and a decrease to share capital. 
D)  a decrease to cash, and an increase to land and share capital.

Question 7

The owner of an entity pays cash into the company's cash at bank account. The effect of this is to record an increase to cash on the left-hand side of the worksheet and an increase to equity on the right-hand side of the worksheet. This is the same as recording a debit on the left-hand side of the T account Cash at Bank and a credit on the right-hand side of the T account Owners' Equity.

Accepted Answer

A) True 
 B)False

Which of the following accounts normally has a debit balance?

Income and expenses affect the profits made by an entity. Which of the following statements best describes how this fact is consistent with the accounting equation and the debit and credit rule?

Discuss the role that journals, the ledger, debits and credits and the trial balance play in the traditional approach to recording transactions (events).

An accounting journal is a book of original entry that is prepared to record transactions in chronological order.

The balance sheet lists final account balances for which of the following elements of financial statements?

On 1 August XYZ Ltd issued $240 000 shares to shareholders in exchange for cash of $100 000 and land of $140 000. This transaction would be recorded in the general ledger as:

Introduction to Accounting

Types of Organisations and the Financial Reporting Framework

Ethics and Corporate Governance

Wealth and the Measurement of Profit

Presentation of Financial Position and the Worksheet

Presentation of Financial Performance and the Worksheet

Presentation of Cash Flows

Accounting for Selected Assets

Liabilities and Sources of Financing

Financial Statement Analysis

An Introduction to Management Accounting: a Strategic Perspective

Performance Measurement and the Balanced Scorecard

Costs and Cost Behaviour

Budgets

Cost-Volume-Profit Analysis

Accounting for Decision Making: With and Without Resource Constraints

Capital Investment Decisions

Filters

Exam 11: Worksheet to Debits and Credits

Which of the following accounts normally has a debit balance?

Income and expenses affect the profits made by an entity. Which of the following statements best describes how this fact is consistent with the accounting equation and the debit and credit rule?

Discuss the role that journals, the ledger, debits and credits and the trial balance play in the traditional approach to recording transactions (events).

An accounting journal is a book of original entry that is prepared to record transactions in chronological order.

The balance sheet lists final account balances for which of the following elements of financial statements?

On 1 August XYZ Ltd issued $240 000 shares to shareholders in exchange for cash of $100 000 and land of $140 000. This transaction would be recorded in the general ledger as:

Introduction to Accounting

Types of Organisations and the Financial Reporting Framework

Ethics and Corporate Governance

Wealth and the Measurement of Profit

Presentation of Financial Position and the Worksheet

Presentation of Financial Performance and the Worksheet

Presentation of Cash Flows

Accounting for Selected Assets

Liabilities and Sources of Financing

Financial Statement Analysis

An Introduction to Management Accounting: a Strategic Perspective

Performance Measurement and the Balanced Scorecard

Costs and Cost Behaviour

Budgets

Cost-Volume-Profit Analysis

Accounting for Decision Making: With and Without Resource Constraints

Capital Investment Decisions

Filters