Question 1

The beginning balance in Cash was $5,000. Additional cash of $2,600 was received. Checks were written totaling $3,300. The ending balance in cash is:

Accepted Answer

A)   $2,400.
B)   $7,600.
C)   $5,700.
D)   $4,300.E) B) and C)
F) C) and D)

Question 2

What would be the effect on the accounts if the business purchased equipment on account?

Accepted Answer

A)   An asset would be debited and an expense debited.
B)   Expense would be debited and Liability credited.
C)   An asset would be debited and Liability debited.
D)   An asset would be debited and a Liability credited.E) C) and D)
F) All of the above

Question 3

Which of the following is prepared last?

Accepted Answer

A)   Balance Sheet
B)   Income Statement
C)   Statement of Owner's Equity
D)   Trial BalanceE) B) and C)
F) A) and C)

Question 4

Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?

Accepted Answer

A)   $3,250 debit, $3,250 credit
B)   $1,900 debit, $1,900 credit
C)   $4,500 debit, $4,500 credit
D)   $2,250 debit, $2,250 creditE) B) and D)
F) A) and B)

Question 5

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

Accepted Answer

A) True 
 B)False

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

1 Assets
3 Capital
5...

Question 7

Office Supplies had a normal starting balance of $95. There were debit postings of $120 and credit postings of $60 during the month. The ending balance of the account is:

Accepted Answer

A)   $85 debit.
B)   $85 credit.
C)   $155 debit.
D)   $155 credit.E) A) and D)
F) B) and C)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The right side of any account is the:

Accepted Answer

A)   debit side.
B)   credit side.
C)   ending balance.
D)   beginning balance.E) A) and D)
F) None of the above

Question 11

Which of the following types of accounts has a normal debit balance?

Accepted Answer

A)   Withdrawals
B)   Assets
C)   Expenses
D)   All of these answers are correct.E) B) and C)
F) A) and D)

Question 12

An asset would be debited and another asset credited if:

Accepted Answer

A)   the business bought supplies for cash.
B)   the business incurred an expense and paid it.
C)   the business bought equipment on account.
D)   None of these is correct.E) All of the above
F) A) and D)

Question 13

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

Accepted Answer

A)   credit Cash; debit Capital.
B)   credit Cash; debit Supplies Expense.
C)   credit Cash; debit Withdrawals.
D)   credit Cash; debit Accounts Payable.E) A) and C)
F) None of the above

Question 14

An account is said to have a debit balance if:

Accepted Answer

A)   the footing of the debits exceeds the footing of the credits.
B)   there are more entries on the debit side than on the credit side.
C)   its normal balance is debit without regard to the amounts or number of entries on the debit side.
D)   the last entry of the accounting period was posted on the debit side.E) None of the above
F) All of the above

Question 15

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, and in Column 3 the financial statement that the account appears upon.
-

Accepted Answer

The answer of For each of the following, identify in...

Question 16

Double-entry accounting requires transactions to affect two or more accounts, and the total of the debits to be greater than the credits.

Accepted Answer

A) True 
 B)False

Question 17

A list of all the accounts from the ledger with their ending balances is called a:

Accepted Answer

A)   normal balance.
B)   trial balance.
C)   chart of accounts.
D)   bank statement.E) C) and D)
F) A) and D)

Question 18

Which of the statements of the rules of debit and credit is true?

Accepted Answer

A)   Decrease Accounts Receivable with a credit and the normal balance is a credit.
B)   Increase Accounts Payable with a credit and the normal balance is a credit.
C)   Increase Revenue with a debit and the normal balance is a debit.
D)   Decrease Cash with a debit and the normal balance is a debit.E) B) and D)
F) A) and B)

Question 19

What is X-cel Company's net income or net loss if it had Revenue of $2,200, Salary Expense of $700, Utility Expense of $350, and Withdrawals of $3,000 during October?

Accepted Answer

A)   $1,850 net income
B)   $1,150 net loss
C)   $1,150 net income
D)   $1,850 net lossE) A) and C)
F) A) and D)

Question 20

Which of the following types of accounts has a normal credit balance?

Accepted Answer

A)   Withdrawals
B)   Assets
C)   Expenses
D)   None of the aboveE) A) and C)
F) A) and B)

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

Which of the statements of the rules of debit and credit is true?

Correct AnswerverifiedShow Answer

Which of the following types of accounts has a normal debit balance?

Correct AnswerverifiedShow Answer

An asset would be debited and another asset credited if:

Correct AnswerverifiedShow Answer

An account is said to have a debit balance if:

Correct AnswerverifiedShow Answer

Office Supplies had a normal starting balance of $95. There were debit postings of $120 and credit postings of $60 during the month. The ending balance of the account is:

Correct AnswerverifiedShow Answer

The right side of any account is the:

Correct AnswerverifiedShow Answer

A list of all the accounts from the ledger with their ending balances is called a:

Correct AnswerverifiedShow Answer

What would be the effect on the accounts if the business purchased equipment on account?

Correct AnswerverifiedShow Answer

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, and in Column 3 the financial statement that the account appears upon. -

Correct AnswerverifiedShow Answer

Double-entry accounting requires transactions to affect two or more accounts, and the total of the debits to be greater than the credits.

Correct AnswerverifiedShow Answer

The beginning balance in Cash was $5,000. Additional cash of $2,600 was received. Checks were written totaling $3,300. The ending balance in cash is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is prepared last?

Correct AnswerverifiedShow Answer

What is X-cel Company's net income or net loss if it had Revenue of $2,200, Salary Expense of $700, Utility Expense of $350, and Withdrawals of $3,000 during October?

Correct AnswerverifiedShow Answer

Which of the following types of accounts has a normal credit balance?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct Answerverified1 Assets3 Capital5...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified
1 Assets
3 Capital
5...
View Answer

Correct Answer
verified