Question 1

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

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 creditE) A) and B)
F) A) and C)

Question 2

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.E) B) and C)
F) All of the above

Question 3

Explain the difference between expenses and withdrawals.

Accepted Answer

A withdrawal is used for recording the o...

Question 4

Why is Revenue increased on the Credit side? (Explain as it pertains to the expanded accounting equation and its relationship to Owner's Equity.)

Accepted Answer

Revenue is an increa...

Question 5

The Accounts Payable account is:

Accepted Answer

A)  a revenue, and it has a normal debit balance.
B)  an expense, and it has a normal credit balance.
C)  a liability, and it has a normal debit balance.
D)  a liability, and it has a normal credit balance.E) B) and C)
F) None of the above

Question 6

The left column of a financial statement is often used to:

Accepted Answer

A)  show debits.
B)  show credits.
C)  show totals.
D)  subtotal numbers.E) B) and D)
F) B) and C)

Question 7

The following transactions occurred during June for Campus Cycle Shop. Record the transactions below in the T accounts. Place the letter of the transaction next to the entry. Foot and calculate the ending balances of the T accounts where appropriate.
a. Tyler invested $6,500 in the bike service from his personal savings account.
b. Bought office equipment for cash, $900.
c. Performed bike service for a customer on account, $1,000.
d. Company cell phone bill received, but not paid, $80.
e. Collected $500 from customer in transaction c.
f. Tyler withdrew $300 for personal use.

Accepted Answer

The answer of The following transactions occurred during June for...

Question 8

Wages Expense appears on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 9

Which type of account would not be reported on the income statement?

Accepted Answer

A)  Revenue
B)  Expenses
C)  Liabilities
D)  None of these answers are correct.E) A) and D)
F) A) and C)

Question 10

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)  footing.E) A) and B)
F) A) and C)

Question 11

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

Accepted Answer

A)  debit Telephone Expense; credit Accounts Payable.
B)  debit Tom's Withdrawals; credit Cash.
C)  debit Telephone Expense; credit Cash.
D)  debit Tom's Withdrawals; credit Accounts Payable.E) B) and D)
F) A) and D)

Question 12

Which of the following entries would be used to record the billing of fees earned?

Accepted Answer

A)  Debit Accounts Receivable and credit Rental Fees
B)  Credit Cash and credit Rental Fees
C)  Debit Cash and credit Rental Fees
D)  Debit Cash and debit Rental FeesE) B) and C)
F) C) and D)

Question 13

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 14

Expenses are recorded when paid.

Accepted Answer

A) True 
 B)False

Question 15

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.E) B) and C)
F) A) and D)

Question 16

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 17

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) All of the above
F) C) and D)

Question 18

The side of an account that increases the balance is always the same as the normal balance side.

Accepted Answer

A) True 
 B)False

Question 19

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 Capital 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) B) and C)

Question 20

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

Accepted Answer

A)  Withdrawals
B)  Assets
C)  Expenses
D)  RevenuesE) B) and D)
F) B) and C)

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

Why is Revenue increased on the Credit side? (Explain as it pertains to the expanded accounting equation and its relationship to Owner's Equity.)

Correct Answer
verified
Revenue is an increa...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Accounts Payable would appear on which financial statement?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Explain the difference between expenses and withdrawals.

Correct Answer
verified
A withdrawal is used for recording the o...
View Answer

The Accounts Payable account is:

Correct Answer
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The side of an account that increases the balance is always the same as the normal balance side.

Correct Answer
verified

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 Answer
verified

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 Answer
verified

Which of the following entries would be used to record the billing of fees earned?

Correct Answer
verified

Wages Expense appears on the balance sheet.

Correct Answer
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Expenses are recorded when paid.

Correct Answer
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The left column of a financial statement is often used to:

Correct Answer
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Which type of account would not be reported on the income statement?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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

Why is Revenue increased on the Credit side? (Explain as it pertains to the expanded accounting equation and its relationship to Owner's Equity.)

Correct AnswerverifiedRevenue is an increa...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Accounts Payable would appear on which financial statement?

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Explain the difference between expenses and withdrawals.

Correct AnswerverifiedA withdrawal is used for recording the o...View AnswerShow Answer

The Accounts Payable account is:

Correct AnswerverifiedShow Answer

The side of an account that increases the balance is always the same as the normal balance side.

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

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

Which of the following entries would be used to record the billing of fees earned?

Correct AnswerverifiedShow Answer

Wages Expense appears on the balance sheet.

Correct AnswerverifiedShow Answer

Expenses are recorded when paid.

Correct AnswerverifiedShow Answer

The left column of a financial statement is often used to:

Correct AnswerverifiedShow Answer

Which type of account would not be reported on the income statement?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified
Revenue is an increa...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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A withdrawal is used for recording the o...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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