Question 1

On July 7, 2020, Rancho Realty Co. performed cash services of $1,900. To record this transaction Rancho would

Accepted Answer

A)   debit Service Revenue for $1,900.
B)   credit Accounts Receivable for $1,900.
C)   debit Cash for $1,900.
D)   credit Accounts Payable for $1,900.

Question 2

Alta Pass Brewing Company purchased additional equipment for $120,000. Alta Pass paid $25,000 in cash and signed a note for the balance. Alta Pass debited Equipment, credited Cash and

Accepted Answer

A)   nothing further must be done.
B)   debited the Capital account for $120,000.
C)   credited another asset account for $95,000.
D)   credited a liability account for $95,000. D

Question 3

A T-account is

Accepted Answer

A)   a way of depicting the basic form of an account.
B)   what the computer uses to organize bytes of information.
C)   a special account used instead of a trial balance.
D)   used for accounts that have both a debit and credit balance.

Question 4

If a company has overdrawn its bank balance, then

Accepted Answer

A)   its cash account will show a debit balance.
B)   its cash account will show a credit balance.
C)   the cash account debits will exceed the cash account credits.
D)   it cannot be detected by observing the balance of the cash account.

Question 5

Purchasing supplies on account increases total assets.

Accepted Answer

A) True 
 B)False

Question 6

Jane Mena, the owner of Black Cat Burrito, withdrew $1,600 from the business for personal use. This transaction is recorded with a

Accepted Answer

A)   debit to Salaries and Wages Expense and a credit to Cash.
B)   debit to Cash and a credit to Owner's Capital.
C)   debit to Owner's Drawing and a credit to Cash.
D)   debit to Owner's Capital and a credit to Salaries and Wages Expense.

Question 7

The investment of cash in the business by the owner increases total liabilities.

Accepted Answer

A) True 
 B)False  False

Question 8

When the owner withdraws cash for personal use, the Owner's Drawing account is credited.

Accepted Answer

A) True 
 B)False

Question 9

Sigur Ros Company is a newly organized business. The list of accounts to Instructions Organize the accounts into the order in which they should appear in the ledger of Sigur Ros Company and assign account numbers. Use the following system to assign account numbers.

Accepted Answer

101- Cash
112- Accounts Receivable
125- ...

Question 10

A debit is the normal balance for which of the following accounts?

Accepted Answer

A)   Owner's Capital account
B)   Revenue account
C)   Liability account
D)   Owner's Drawings account

Question 11

A chart of accounts for a business firm

Accepted Answer

A)   is a graph.
B)   indicates the amount of profit or loss for the period.
C)   lists the accounts and account numbers that identify their location in the ledger.
D)   shows the balance of each account in the general ledger.

Question 12

Assets normally show

Accepted Answer

A)   credit balances.
B)   debit balances.
C)   debit and credit balances.
D)   debit or credit balances.

Question 13

Jake Beacham withdrew $600 from his business for personal use. This transaction is recorded with a

Accepted Answer

A)   debit to Salaries and Wages Expense.
B)   credit to Owner's Capital.
C)   debit to Owner's Drawing.
D)   credit to Salaries and Wages Expense.

Question 14

The chart of accounts is a

Accepted Answer

A)   list of accounts and their balances at a given time.
B)   device used to prove the mathematical accuracy of the accounts.
C)   listing of the accounts and the account numbers which identify their location in the ledger.
D)   required step in the recording process.

Question 15

Ben's Discorama performed $2,000 of services in designing a disc golf course, with payment to be received later. The performance of services is recorded with a

Accepted Answer

A)   debit to Accounts Receivable.
B)   credit to Cash.
C)   debit to Service Revenue.
D)   credit to Accounts Payable. A

Question 16

Your roommate, a marketing major, thinks that debit means decrease and credit means increase. And, that every account can be debited and credited and as result, every account can have both a debit and a credit balance. Explain to your roommate (1) the meaning of debit and credit; (2) which accounts can only be debited, which can only be credited, and which can be both debited and credited; and (3) which accounts normally have debit balances and which credit balances.

Accepted Answer

The terms debit and credit mean the left...

Question 17

Credit always means

Accepted Answer

A)   increase.
B)   decrease.
C)   left side
D)   right side.

Question 18

The right side of an account

Accepted Answer

A)   is the correct side.
B)   reflects all transactions for the accounting period.
C)   shows all the balances of the accounts in the system.
D)   is the credit side.

Question 19

A classmate is considering dropping his accounting class because he cannot understand the rules of debits and credits.
a. Can the student be successful in the course without an understanding of the rules of debits and credits?
b. Explain the rules of debits and credits in a way that will help him understand them.

Accepted Answer

a. Accounting is based on the double-ent...

Question 20

The double-entry system is a logical method for recording transactions and results in equal amounts for debits and credits for each transaction.

Accepted Answer

A) True 
 B)False

Exam 3: The Recording Process: Debits and Credits

On July 7, 2020, Rancho Realty Co. performed cash services of $1,900. To record this transaction Rancho would

Correct Answer
verified

Alta Pass Brewing Company purchased additional equipment for $120,000. Alta Pass paid $25,000 in cash and signed a note for the balance. Alta Pass debited Equipment, credited Cash and

Correct Answer
verified
D

A T-account is

Correct Answer
verified

If a company has overdrawn its bank balance, then

Correct Answer
verified

Purchasing supplies on account increases total assets.

Correct Answer
verified

Jane Mena, the owner of Black Cat Burrito, withdrew $1,600 from the business for personal use. This transaction is recorded with a

Correct Answer
verified

The investment of cash in the business by the owner increases total liabilities.

Correct Answer
verified
False

When the owner withdraws cash for personal use, the Owner's Drawing account is credited.

Correct Answer
verified

Sigur Ros Company is a newly organized business. The list of accounts to Instructions Organize the accounts into the order in which they should appear in the ledger of Sigur Ros Company and assign account numbers. Use the following system to assign account numbers.

Correct Answer
verified
101- Cash
112- Accounts Receivable
125- ...
View Answer

A debit is the normal balance for which of the following accounts?

Correct Answer
verified

A chart of accounts for a business firm

Correct Answer
verified

Assets normally show

Correct Answer
verified

Jake Beacham withdrew $600 from his business for personal use. This transaction is recorded with a

Correct Answer
verified

The chart of accounts is a

Correct Answer
verified

Ben's Discorama performed $2,000 of services in designing a disc golf course, with payment to be received later. The performance of services is recorded with a

Correct Answer
verified
A

Correct Answer
verified
The terms debit and credit mean the left...
View Answer

Credit always means

Correct Answer
verified

The right side of an account

Correct Answer
verified

Correct Answer
verified
a. Accounting is based on the double-ent...
View Answer

The double-entry system is a logical method for recording transactions and results in equal amounts for debits and credits for each transaction.

Correct Answer
verified

Exam 3: The Recording Process: Debits and Credits

On July 7, 2020, Rancho Realty Co. performed cash services of $1,900. To record this transaction Rancho would

Correct AnswerverifiedShow Answer

Alta Pass Brewing Company purchased additional equipment for $120,000. Alta Pass paid $25,000 in cash and signed a note for the balance. Alta Pass debited Equipment, credited Cash and

Correct AnswerverifiedD

A T-account is

Correct AnswerverifiedShow Answer

If a company has overdrawn its bank balance, then

Correct AnswerverifiedShow Answer

Purchasing supplies on account increases total assets.

Correct AnswerverifiedShow Answer

Jane Mena, the owner of Black Cat Burrito, withdrew $1,600 from the business for personal use. This transaction is recorded with a

Correct AnswerverifiedShow Answer

The investment of cash in the business by the owner increases total liabilities.

Correct AnswerverifiedFalse

When the owner withdraws cash for personal use, the Owner's Drawing account is credited.

Correct AnswerverifiedShow Answer

Sigur Ros Company is a newly organized business. The list of accounts to Instructions Organize the accounts into the order in which they should appear in the ledger of Sigur Ros Company and assign account numbers. Use the following system to assign account numbers.

Correct Answerverified101- Cash112- Accounts Receivable125- ...View AnswerShow Answer

A debit is the normal balance for which of the following accounts?

Correct AnswerverifiedShow Answer

A chart of accounts for a business firm

Correct AnswerverifiedShow Answer

Assets normally show

Correct AnswerverifiedShow Answer

Jake Beacham withdrew $600 from his business for personal use. This transaction is recorded with a

Correct AnswerverifiedShow Answer

The chart of accounts is a

Correct AnswerverifiedShow Answer

Ben's Discorama performed $2,000 of services in designing a disc golf course, with payment to be received later. The performance of services is recorded with a

Correct AnswerverifiedA

Correct AnswerverifiedThe terms debit and credit mean the left...View AnswerShow Answer

Credit always means

Correct AnswerverifiedShow Answer

The right side of an account

Correct AnswerverifiedShow Answer

Correct Answerverifieda. Accounting is based on the double-ent...View AnswerShow Answer

The double-entry system is a logical method for recording transactions and results in equal amounts for debits and credits for each transaction.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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D

Correct Answer
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Correct Answer
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False

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101- Cash
112- Accounts Receivable
125- ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified
The terms debit and credit mean the left...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. Accounting is based on the double-ent...
View Answer

Correct Answer
verified