Question 1

When preparing a trial balance, it is not necessary to use dollar signs.

Accepted Answer

A) True 
 B)False

Question 2

The credit side is always the right side of the account.

Accepted Answer

A) True 
 B)False

Question 3

Cash would be affected by any transaction that involves a withdrawal.

Accepted Answer

A) True 
 B)False

Question 4

Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits? $$\begin{array}{l}
\begin{array} {| l | l | } 
\hline \text {Cash}&\$1,200 \
\hline \text {Accounts Receivable}&700\
\hline \text {Capital}&1,900\\hline \text {Withdrawals}&500\
\hline \text {Service Fees }&1,000\
\hline \text {Rent Expense}&500\\hline
\end{array}
\end{array}$$

Accepted Answer

A)  $2,900 debit, $2,900 credit 
B)  $3,900 debit, $3,900 credit 
C)  $2,000 debit, $2,000 credit 
D)  $1,200 debit, $1,200 credit

Question 5

Identify the normal balance for each of the following accounts by using a Dr. (debit) or a Cr. (credit).
________ 1. Salaries Expense
________ 2. R. Johns, Withdrawals
________ 3. R. Johns, Capital
________ 4. Accounting Fees
________ 5. Cash
________ 6. Accounts Receivable
________ 7. Accounts Payable
________ 8. Rent Expense
________ 9. Equipment
________ 10. Advertising Expense

Accepted Answer

The answer of Identify the normal balance for each of...

Question 6

Number the following types of accounts (1-6) as they would appear on the Trial Balance.
________ Assets
________ Capital
________ Revenue
________ Liabilities
________ Withdrawals
________ Expenses

Accepted Answer

The answer of Number the following types of accounts (1-6)...

Question 7

Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits? $$\begin{array} { l | r } 
\hline \text { Cash } & \$ 500 \
\hline \text { Accounts Receivable } & 100 \
\hline \text { Capital } & 200 \
\hline \text { Withdrawals } & 100 \
\hline \text { Service Fees } & 700 \
\hline \text { Rent Expense } & 200 \
\hline
\end{array}$$

Accepted Answer

A)  $800 debit, $1,000 credit 
B)  $800 debit, $800 credit 
C)  $1,000 debit, $1,000 credit 
D)  $900 debit, $900 credit

Question 8

Explain the difference between expenses and withdrawals.

Accepted Answer

The answer of Explain the difference between expenses and withdrawals....

Question 9

Which of the following is NOT a financial statement?

Accepted Answer

A)  Balance sheet 
B)  Income statement 
C)  Statement of owner's equity 
D)  Trial balance

Question 10

A liability would be credited and an expense debited if

Accepted Answer

A)  the business paid a creditor. 
B)  the business incurred an expense and did not pay the expense immediately. 
C)  the business bought supplies on account. 
D)  the business bought supplies for cash.

Question 11

Which type of account would NOT be reported on the balance sheet?

Accepted Answer

A)  Revenue 
B)  Cash 
C)  Accounts Payable 
D)  Accounts Receivable

Question 12

A debit to an asset account was posted to an expense account. This error would cause

Accepted Answer

A)  liabilities to be overstated. 
B)  expenses to be overstated. 
C)  assets to be understated 
D)  Both B and C are correct.

Question 13

An asset would be debited and a liability credited if

Accepted Answer

A)  the business bought supplies for cash. 
B)  the business incurred an expense and paid it. 
C)  the business incurred an expense and did not pay for the expense immediately. 
D)  the business bought equipment on account.

Question 14

The normal balance of an account is

Accepted Answer

A)  debit. 
B)  credit. 
C)  the side that decreases. 
D)  the side that increases.

Question 15

Cash had a normal starting balance of $600. There were debit postings of $200 and credit postings of $300 during the month. The ending balance is

Accepted Answer

A)  $500 credit. 
B)  $1,100 debit. 
C)  $500 debit. 
D)  $1,100 credit.

Question 16

The Accounts Payable account has a zero opening balance, total debit postings of $800 and credit postings of $1,400. The balance is

Accepted Answer

A)  $2,200 debit. 
B)  $600 credit. 
C)  $2,200 credit. 
D)  $600 debit.

Question 17

Which of the following statements is NOT true?

Accepted Answer

A)  Account balances are used to prepare a trial balance. 
B)  A Trial Balance helps prove the accuracy of the ledger. 
C)  Footings are needed even if an account has only a single entry. 
D)  Accounts are listed in order on the Trial Balance.

Question 18

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

Accepted Answer

A)  chart of accounts. 
B)  account. 
C)  trial balance. 
D)  footing.

Question 19

A trial balance is a formal report prepared after the balance sheet.

Accepted Answer

A) True 
 B)False

Question 20

Accounts Payable would appear on which financial statement?

Accepted Answer

A)  Balance sheet 
B)  Income statement 
C)  Owner's equity statement 
D)  None of these answers are correct.

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

When preparing a trial balance, it is not necessary to use dollar signs.

The credit side is always the right side of the account.

Cash would be affected by any transaction that involves a withdrawal.

Identify the normal balance for each of the following accounts by using a Dr. (debit) or a Cr. (credit). 1. Salaries Expense 2. R. Johns, Withdrawals 3. R. Johns, Capital 4. Accounting Fees 5. Cash 6. Accounts Receivable 7. Accounts Payable 8. Rent Expense 9. Equipment 10. Advertising Expense

Number the following types of accounts (1-6) as they would appear on the Trial Balance. Assets Capital Revenue Liabilities Withdrawals Expenses

Explain the difference between expenses and withdrawals.

Which of the following is NOT a financial statement?

A liability would be credited and an expense debited if

Which type of account would NOT be reported on the balance sheet?

A debit to an asset account was posted to an expense account. This error would cause

An asset would be debited and a liability credited if

The normal balance of an account is

Cash had a normal starting balance of $600. There were debit postings of $200 and credit postings of $300 during the month. The ending balance is

The Accounts Payable account has a zero opening balance, total debit postings of $800 and credit postings of $1,400. The balance is

Which of the following statements is NOT true?

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

A trial balance is a formal report prepared after the balance sheet.

Accounts Payable would appear on which financial statement?

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

When preparing a trial balance, it is not necessary to use dollar signs.

The credit side is always the right side of the account.

Cash would be affected by any transaction that involves a withdrawal.

Number the following types of accounts (1-6) as they would appear on the Trial Balance. ________ Assets ________ Capital ________ Revenue ________ Liabilities ________ Withdrawals ________ Expenses

Explain the difference between expenses and withdrawals.

Which of the following is NOT a financial statement?

A liability would be credited and an expense debited if

Which type of account would NOT be reported on the balance sheet?

A debit to an asset account was posted to an expense account. This error would cause

An asset would be debited and a liability credited if

The normal balance of an account is

Cash had a normal starting balance of $600. There were debit postings of $200 and credit postings of $300 during the month. The ending balance is

The Accounts Payable account has a zero opening balance, total debit postings of $800 and credit postings of $1,400. The balance is

Which of the following statements is NOT true?

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

A trial balance is a formal report prepared after the balance sheet.

Accounts Payable would appear on which financial statement?

Number the following types of accounts (1-6) as they would appear on the Trial Balance. Assets Capital Revenue Liabilities Withdrawals Expenses