Question 1

A verification of the equality of debits and credits in the ledger at the end of a fiscal period is called a balance sheet.

Accepted Answer

A) True 
 B)False

Question 2

Net income results when:

Accepted Answer

A)   total revenue is less than total expenses over the period.
B)   total revenue exceeds total expenses over the period.
C)   total revenue is less than total liabilities over the period.
D)   total revenue exceeds total liabilities over the period.

Question 3

The left side is always the debit side.

Accepted Answer

A) True 
 B)False

Question 4

When a T account has several items on both sides, the balance of the account is written

Accepted Answer

A)   on the side with the greatest number of items.
B)   on the side with the least number of items.
C)   on the side with the larger total.
D)   on the side with the smaller total.
E)   in none of these locations.

Question 5

Match between columns
                        Premises:  To decrease Cash
 To increase Owner, Capital
 To decrease Accounts Payable
 To increase Salaries Expense
 To decrease Equipment
 To increase Revenue
 To decrease Accounts Receivable
 To increase Owner, Drawing
 To increase Prepaid Insurance
 To increase Accounts Payable

Accepted Answer

The Answer of debit entry and credit entry is...

Question 6

Davis Company has the following accounts and balances at the end of the year:
 Cash, $1,200
Accounts Receivable, $280
Office Equipment, $3,000
Accounts Payable, $1,400
Income from Services, $3,500
Rent Expense, $670
Salaries Expense, $1,000
R. Davis, Capital at the beginning of the year was $2,050. Rob Davis also withdrew $800 from the company during the year. What is R. Davis, Capital, at the end of the year?

Accepted Answer

A)   $1,830
B)   $3,080
C)   $5,550
D)   $3,880

Question 7

Davis Company has the following accounts and balances at the end of the year: 
Cash, $1,200
Accounts Receivable, $280
Office Equipment, $3,000
Accounts Payable, $1,400
Income from Services, $3,500
Rent Expense, $670
Salaries Expense, $1,000
R.Davis, Capital at the beginning of the year was $2,050. Rob Davis also withdrew $800 from the company during the year. What is the amount of total assets reported on the balance sheet?

Accepted Answer

A)   $1,480
B)   $9,800
C)   $3,080
D)   $4,480

Question 8

Which of the following is not true concerning T accounts?

Accepted Answer

A)   The right side of a revenue account is an increase.
B)   The left side of an expense account is an increase.
C)   The left side of an asset account is an increase.
D)   The left side of a liability account is an increase.

Question 9

Which of the following is not true?

Accepted Answer

A)   The capital account would be increased with a debit.
B)   The drawing account would be increased with a debit.
C)   An asset account would be decreased with a credit.
D)   A liability account would be increased with a credit.

Question 10

List the main categories of accounts (as provided in a typical chart of accounts) and provide their specific normal balance.

Accepted Answer

Assets (DR), Liabilities (CR),...

Question 11

The ___________ are the totals of each side of a T account that is normally recorded in small, pencil-written figures.

Accepted Answer

A)   balances
B)   footings
C)   figures
D)   estimates

Question 12

The order the financial statements are prepared is as follows:

Accepted Answer

A)   statement of owner's equity, income statement, balance sheet
B)   income statement, balance sheet, statement of owner's equity
C)   income statement, statement of owner's equity, balance sheet
D)   balance sheet, income statement, statement of owner's equity

Question 13

A business buys office equipment for cash. What effect will this transaction have on the accounts?

Accepted Answer

A)   Debit an asset account and credit an expense account
B)   Debit an asset account and credit an asset account
C)   Debit an expense account and credit an asset account
D)   Debit a liability account and credit an asset account
E)   None of these

Question 14

The _______________ of a company is the resources owned by the organization at a point in time, offset by the claims against those resources and owner's equity.

Accepted Answer

A)   net income
B)   financial statement
C)   net loss
D)   financial position

Question 15

Which of the following is correct, assuming the following transaction: R. Dirk invested $20,000 cash in the business.

Accepted Answer

A)   Cash is debited.
B)   Cash is credited.
C)   R. Dirk, Capital is debited.
D)   Income from Services is credited.

Question 16

Recording $520 as $5.20 is an example of a slide.

Accepted Answer

A) True 
 B)False

Question 17

An error caused by recording $25,000 as $2,500 is a(n) :

Accepted Answer

A)   switching error.
B)   embezzlement.
C)   slide.
D)   transposition.

Question 18

Jackson Company received cash on account from customers, $2,300. The accountant would record a

Accepted Answer

A)   debit to income from services, $2,300.
B)   credit to income from services, $2,300.
C)   debit to accounts receivable, $2,300.
D)   credit to accounts receivable, $2,300.
E)   credit to cash, $2,300.

Question 19

Match the terms below with the correct definitions.
-A recording error involving the switching around of the digits of a number

Accepted Answer

A)  Trial balance
B)  Normal balance
C)  Trial balance error
D)  Transposition
E)  CreditF) Trial balance account orderG) FootingH) DebitI) Compound entry

Question 20

Revenue has the effect of decreasing owner's equity.

Accepted Answer

A) True 
 B)False

Exam 2: T Accounts, Debits and Credits, Trial Balance, and Financial Statements

Which of the following is correct, assuming the following transaction: R. Dirk invested $20,000 cash in the business.

Correct Answer
verified

The ___________ are the totals of each side of a T account that is normally recorded in small, pencil-written figures.

Correct Answer
verified

Net income results when:

Correct Answer
verified

Recording $520 as $5.20 is an example of a slide.

Correct Answer
verified

When a T account has several items on both sides, the balance of the account is written

Correct Answer
verified

Indicate whether each of the following changes in accounts would be a:

A business buys office equipment for cash. What effect will this transaction have on the accounts?

Correct Answer
verified

Correct Answer
verified

An error caused by recording $25,000 as $2,500 is a(n) :

Correct Answer
verified

A verification of the equality of debits and credits in the ledger at the end of a fiscal period is called a balance sheet.

Correct Answer
verified

The left side is always the debit side.

Correct Answer
verified

The _______________ of a company is the resources owned by the organization at a point in time, offset by the claims against those resources and owner's equity.

Correct Answer
verified

Which of the following is not true?

Correct Answer
verified

Jackson Company received cash on account from customers, $2,300. The accountant would record a

Correct Answer
verified

Revenue has the effect of decreasing owner's equity.

Correct Answer
verified

The order the financial statements are prepared is as follows:

Correct Answer
verified

List the main categories of accounts (as provided in a typical chart of accounts) and provide their specific normal balance.

Correct Answer
verified
Assets (DR), Liabilities (CR),...
View Answer

Which of the following is not true concerning T accounts?

Correct Answer
verified

Correct Answer
verified

Match the terms below with the correct definitions. -A recording error involving the switching around of the digits of a number

Correct Answer
verified

Exam 2: T Accounts, Debits and Credits, Trial Balance, and Financial Statements

Which of the following is correct, assuming the following transaction: R. Dirk invested $20,000 cash in the business.

Correct AnswerverifiedShow Answer

The ___________ are the totals of each side of a T account that is normally recorded in small, pencil-written figures.

Correct AnswerverifiedShow Answer

Net income results when:

Correct AnswerverifiedShow Answer

Recording $520 as $5.20 is an example of a slide.

Correct AnswerverifiedShow Answer

When a T account has several items on both sides, the balance of the account is written

Correct AnswerverifiedShow Answer

Indicate whether each of the following changes in accounts would be a:

A business buys office equipment for cash. What effect will this transaction have on the accounts?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An error caused by recording $25,000 as $2,500 is a(n) :

Correct AnswerverifiedShow Answer

A verification of the equality of debits and credits in the ledger at the end of a fiscal period is called a balance sheet.

Correct AnswerverifiedShow Answer

The left side is always the debit side.

Correct AnswerverifiedShow Answer

The _______________ of a company is the resources owned by the organization at a point in time, offset by the claims against those resources and owner's equity.

Correct AnswerverifiedShow Answer

Which of the following is not true?

Correct AnswerverifiedShow Answer

Jackson Company received cash on account from customers, $2,300. The accountant would record a

Correct AnswerverifiedShow Answer

Revenue has the effect of decreasing owner's equity.

Correct AnswerverifiedShow Answer

The order the financial statements are prepared is as follows:

Correct AnswerverifiedShow Answer

List the main categories of accounts (as provided in a typical chart of accounts) and provide their specific normal balance.

Correct AnswerverifiedAssets (DR), Liabilities (CR),...View AnswerShow Answer

Which of the following is not true concerning T accounts?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Match the terms below with the correct definitions. -A recording error involving the switching around of the digits of a number

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Assets (DR), Liabilities (CR),...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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