1. Which statement about the rules of debit and credit is true?;A. If accounts receivable is decreased with a credit, the normal balance is a credit.;B. If accounts payable is increased with a credit, the normal balance is a credit.;C. If capital is increased with a debit, the normal balance is a debit.;D. If cash is decreased with a debit, the normal balance is a debit.;2. The ledger is a;A. group of accounts that records data from business transactions.;B. tool used to make sure that all accounts have normal balances.;C. chronological record of the day?s transactions.;D. tool used to ensure that debits equal credits.;3. When recording transactions in two or more accounts and the totals of the debits and credits are equal, it?s called;A. debiting.;B. crediting.;C. posting.;D. double-entry bookkeeping.;4. The Accounts Receivable account has total debit postings of $1,900 and credit postings of $1,100. The balance of the account is a/an;A. $800 debit.;B. $800 credit.;C. $2,600 credit.;D. $2,600 debit.;5. The beginning balance in the Computers account was $2,000. The company purchased an additional $1,000 worth of computers. The balance in the account is a;A. debit of $2,000.;B. credit of $3,000.;C. debit of $3,000.;D. credit of $2,000.;6. Office Supplies had a normal starting balance of $75. There were debit postings of $80 and credit postings of $60 during the month. The ending balance is a;A. $55 debit.;B. $55 credit.;C. $95 debit.;D. $95 credit.;7. The beginning balance in Cash was $3,500. Additional cash of $2,000 was received. Checks were written totaling $2,500. The cash balance is;A. $2,000.;B. $6,000.;C. $4,500.;D. $3,000.;8. Which entry records the investment of cash by John, owner of a sole proprietorship?;A. Debit John, Capital, credit Cash;B. Debit Cash, credit John, Withdrawals;C. Debit John, Withdrawals, credit Cash;D. Debit Cash, credit John, Capital;9. The owner invested personal equipment in the business. To record this transaction;A. debit Equipment and credit Accounts Payable.;B. debit Accounts Payable and credit Equipment.;C. debit Equipment and credit Capital.;D. credit Equipment and debit Capital.;10. The accounts payable account is a/an _______, and it has a normal _______ balance.;A. revenue, debit;B. expense, credit;C. liability, debit;D. liability, credit;11. Accounts Payable had a normal starting balance of $800. There were debit postings of $600 and credit postings of $300 during the month. The ending balance is a;A. $500 credit.;B. $1,000 debit.;C. $500 debit.;D. $1,000 credit.;12. A category that is not in the chart of accounts is;A. assets.;B. liabilities.;C. cash flows.;D. revenue.;13. A debit balance is a normal balance for which type of account?;A. Accounts payable;B. Revenue;C. Accounts receivable;D. Owner?s capital;14. A liability would be credited and an expense would be debited if the business;A. paid a creditor.;B. incurred an expense and didn?t pay the expense immediately.;C. bought supplies on account.;D. bought supplies for cash.;15. The business incurred an expense and paid it immediately. To record this transaction;A. an expense is debited, and a liability is credited.;B. an expense is debited, and an asset is credited.;C. an expense is debited, and Capital is credited.;D. None of the above;16. Which type of account has a normal credit balance?;A. Withdrawals;B. Assets;C. Expenses;D. Revenues;17. The left side of any account is the;A. debit side.;B. credit side.;C. ending balance.;D. footings.;18. An account that would be increased by a credit is;A. cash.;B. accounts receivable.;C. utilities expense.;D. accounts payable.;19. The owner of BobCats R Us paid his personal MasterCard bill using a company check. What is the correct entry to record the transaction?;A. Credit Cash, debit Capital;B. Credit Cash, debit Supplies Expense;C. Credit Cash, debit Withdrawals;D. Credit Cash, debit Accounts Receivable;20. An account is said to have a debit balance if;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.
Paper#81421 | Written in 18-Jul-2015Price : $27