Question 1

A credit may result in

Accepted Answer

A)  an increase in an asset account. 
B)  a decrease in the Capital account. 
C)  an increase in a liability account. 
D)  a decrease in a liability account. 
E)  none of these. 
A)  an increase in an asset account. 
B)  a decrease in the Capital account. 
C)  an increase in a liability account. 
D)  a decrease in a liability account. 
E)  none of these. C

Question 2

Explain how the Drawing account differs from an expense account.

Accepted Answer

The Drawing account is the opposite of an investment by the owner and records personal use of owner. An expense is a cost related to the earning of revenue or the cost of doing business. In both cases, there is usually a decrease to Cash.

Question 3

Which of the following is correct, assuming the following transaction: Kennedy Company received and paid the rent for the month.

Accepted Answer

A)  Rent Expense is debited. 
B)  Cash is debited. 
C)  Rent Expense is credited. 
D)  Accounts Payable is debited. 
A)  Rent Expense is debited. 
B)  Cash is debited. 
C)  Rent Expense is credited. 
D)  Accounts Payable is debited. A

Question 4

A _______________ is a transaction that requires more than one debit or more than one credit to be recorded.

Accepted Answer

A)  complex entry 
B)  double entry 
C)  deluxe entry 
D)  compound entry 
A)  complex entry 
B)  double entry 
C)  deluxe entry 
D)  compound entry

Question 5

Match the terms below with the correct definitions.
-Listing of the ending balances of all ledger accounts that proves the equality of total debits and credits

Accepted Answer

A) Trial balance 
B) Normal balance 
C) Trial balance error 
D) Transposition 
E) Credit
F)Trial balance account order
G)Footing
H)Debit
I)Compound entry 
A) Trial balance 
B) Normal balance 
C) Trial balance error 
D) Transposition 
E) Credit
F)Trial balance account order
G)Footing
H)Debit
I)Compound entry

Question 6

Which of the following accounts decrease when they are debited?

Accepted Answer

A)  Assets and Drawing 
B)  Drawing and Capital 
C)  Expenses and Assets 
D)  Capital and Liabilities 
E)  Liabilities and Expenses 
A)  Assets and Drawing 
B)  Drawing and Capital 
C)  Expenses and Assets 
D)  Capital and Liabilities 
E)  Liabilities and Expenses

Question 7

If a $47 cash purchase of supplies is recorded as a $57 debit to Supplies Expense and a $57 credit to Cash, the result will be that

Accepted Answer

A)  the trial balance will be out of balance. 
B)  the Supplies Expense account will be understated. 
C)  the Cash account will be overstated. 
D)  Supplies Expense will be overstated and Supplies will be understated. 
E)  none of these will be true. 
A)  the trial balance will be out of balance. 
B)  the Supplies Expense account will be understated. 
C)  the Cash account will be overstated. 
D)  Supplies Expense will be overstated and Supplies will be understated. 
E)  none of these will be true.

Question 8

A list of account balances in two columns-one labelled "Debit" and one labelled "Credit" is the:

Accepted Answer

A)  trial balance. 
B)  ledger balance. 
C)  balance sheet. 
D)  journal balance. 
E)  owner's equity statement. 
A)  trial balance. 
B)  ledger balance. 
C)  balance sheet. 
D)  journal balance. 
E)  owner's equity statement.

Question 9

A credit may result in

Accepted Answer

A)  an increase in a liability account. 
B)  an increase in a revenue account. 
C)  a decrease in an asset account. 
D)  an increase in the Capital account. 
E)  all of these. 
A)  an increase in a liability account. 
B)  an increase in a revenue account. 
C)  a decrease in an asset account. 
D)  an increase in the Capital account. 
E)  all of these.

Question 10

Match the terms below with the correct definitions.
-Transaction that has two or more debits and/or credits

Accepted Answer

A) Trial balance 
B) Normal balance 
C) Trial balance error 
D) Transposition 
E) Credit
F)Trial balance account order
G)Footing
H)Debit
I)Compound entry 
A) Trial balance 
B) Normal balance 
C) Trial balance error 
D) Transposition 
E) Credit
F)Trial balance account order
G)Footing
H)Debit
I)Compound entry

Question 11

List in order of preparation and explain the purpose of the three main financial statements, including what is on each statement.

Accepted Answer

Income Statement-Shows total revenue min

Question 12

In a T account form, the left side is the increase side for:

Accepted Answer

A)  liabilities. 
B)  capital. 
C)  assets. 
D)  revenue. 
A)  liabilities. 
B)  capital. 
C)  assets. 
D)  revenue.

Question 13

An entry to Accounts Payable will be on the left side of the account if there is a decrease and on the right side of the account if there is an increase.

Accepted Answer

A) True 
 B)False

Question 14

Income from Services would be shown on the ______________.

Accepted Answer

A)  debit side of the trial balance 
B)  credit side of the trial balance 
C)  not on the trial balance 
D)  on both the debit and credit side of the trial balance 
A)  debit side of the trial balance 
B)  credit side of the trial balance 
C)  not on the trial balance 
D)  on both the debit and credit side of the trial balance

Question 15

Indicate whether each of the following changes in accounts would be a debit (D) or credit (C) entry.
 ___To decrease Cash
___To increase Owner, Capital
___To decrease Accounts Payable
___To increase Salaries Expense
___To decrease Equipment
___To increase Revenue
___To decrease Accounts Receivable
___To increase Owner, Drawing
___To increase Prepaid Insurance
___To increase Accounts Payable

Accepted Answer

The answer of Indicate whether each of the following changes...

Question 16

A debit may result in

Accepted Answer

A)  an increase in an expense account. 
B)  an increase in an asset account. 
C)  a decrease in a liability account. 
D)  a decrease in a revenue account. 
E)  all of these. 
A)  an increase in an expense account. 
B)  an increase in an asset account. 
C)  a decrease in a liability account. 
D)  a decrease in a revenue account. 
E)  all of these.

Question 17

If equipment is bought by paying $200 as a down payment and the remaining $400 in 30 days, total liabilities are increased by $200.

Accepted Answer

A) True 
 B)False

Question 18

Accounts Receivable would be shown on the __________________.

Accepted Answer

A)  debit side of the trial balance 
B)  credit side of the trial balance 
C)  not on the trial balance 
D)  debit and credit side of the trial balance 
A)  debit side of the trial balance 
B)  credit side of the trial balance 
C)  not on the trial balance 
D)  debit and credit side of the trial balance

Question 19

Owner withdrawals are reported on which financial statement?

Accepted Answer

A)  statement of owner's equity 
B)  balance sheet 
C)  income statement 
D)  none of the answers listed 
A)  statement of owner's equity 
B)  balance sheet 
C)  income statement 
D)  none of the answers listed

Question 20

Which of the following is correct, assuming the following transaction: Nixon Company sold services on account.

Accepted Answer

A)  Cash is credited. 
B)  Accounts Receivable is credited. 
C)  Income from Services is credited. 
D)  Cash is debited. 
A)  Cash is credited. 
B)  Accounts Receivable is credited. 
C)  Income from Services is credited. 
D)  Cash is debited.

A credit may result in

Explain how the Drawing account differs from an expense account.

Which of the following is correct, assuming the following transaction: Kennedy Company received and paid the rent for the month.

A _______________ is a transaction that requires more than one debit or more than one credit to be recorded.

Match the terms below with the correct definitions. -Listing of the ending balances of all ledger accounts that proves the equality of total debits and credits

Which of the following accounts decrease when they are debited?

If a $47 cash purchase of supplies is recorded as a $57 debit to Supplies Expense and a $57 credit to Cash, the result will be that

A list of account balances in two columns-one labelled "Debit" and one labelled "Credit" is the:

A credit may result in

Match the terms below with the correct definitions. -Transaction that has two or more debits and/or credits

List in order of preparation and explain the purpose of the three main financial statements, including what is on each statement.

In a T account form, the left side is the increase side for:

An entry to Accounts Payable will be on the left side of the account if there is a decrease and on the right side of the account if there is an increase.

Income from Services would be shown on the ______________.

A debit may result in

If equipment is bought by paying $200 as a down payment and the remaining $400 in 30 days, total liabilities are increased by $200.

Accounts Receivable would be shown on the __________________.

Owner withdrawals are reported on which financial statement?

Which of the following is correct, assuming the following transaction: Nixon Company sold services on account.

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters

Exam 2: T Accounts, Debits and Credits, Trial Balance, and Financial Statements

A credit may result in

Explain how the Drawing account differs from an expense account.

Which of the following is correct, assuming the following transaction: Kennedy Company received and paid the rent for the month.

A _______________ is a transaction that requires more than one debit or more than one credit to be recorded.

Match the terms below with the correct definitions. -Listing of the ending balances of all ledger accounts that proves the equality of total debits and credits

Which of the following accounts decrease when they are debited?

If a $47 cash purchase of supplies is recorded as a $57 debit to Supplies Expense and a $57 credit to Cash, the result will be that

A list of account balances in two columns-one labelled "Debit" and one labelled "Credit" is the:

A credit may result in

Match the terms below with the correct definitions. -Transaction that has two or more debits and/or credits

List in order of preparation and explain the purpose of the three main financial statements, including what is on each statement.

In a T account form, the left side is the increase side for:

An entry to Accounts Payable will be on the left side of the account if there is a decrease and on the right side of the account if there is an increase.

Income from Services would be shown on the ______________.

A debit may result in

If equipment is bought by paying $200 as a down payment and the remaining $400 in 30 days, total liabilities are increased by $200.

Accounts Receivable would be shown on the __________________.

Owner withdrawals are reported on which financial statement?

Which of the following is correct, assuming the following transaction: Nixon Company sold services on account.

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters