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

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

Revenues are recorded when earned.

An accounting device used to record increases and decreases in individual assets,liabilities,capital,revenue,expenses,and withdrawals is a(n):

The side that increases the account balance,by the rules of debit and credit,is said to be the:

___ 2.M.Bryant,Withdrawals

___ 9.Office Equipment

Determine the beginning owner's equity of a business having an ending owner's equity of $3,500,additional investments of $600 withdrawals of $500,and net loss of $750. $ ________

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

The entry to record Tom's payment of a home telephone bill is:

When the owner invests personal equipment in the business,cash is increased.

Which of the following groups of accounts have a normal debit balance?

The beginning balance in the Computers account was $2,000.The company purchased an additional $1000 worth of computers.The balance in the account is:

Which of the following errors would cause the trial balance to be out of balance?

The Accounts Payable account is:

The owner of BobCats R Us paid his personal MasterCard bill using a company check.The correct entry to record the transaction is:

What would be the effect on accounts if the business received the telephone bill but did not pay it immediately.

A credit to a liability account was posted to an expense account.This error would cause:

Accounts Payable appears on the income statement.

What would be the effect on accounts if the business provided services to a customer on account?

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