Reference no: EM131330406

Question 1

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.

Question 2

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

Question 3

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.

Question 4

When an owner records a credit for $650 for revenue earned but not yet received, the amount of the debit should be
A. $325.
B. $0.
C. $975.
D. $650.

Question 5

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

Question 6

A debit increases the balance in all of the following accounts except for which one?
A. Cash
B. Withdrawals
C. Expenses
D. Accounts payable

Question 7

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.

Question 8

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.

Question 9

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.

Question 10

Which type of account has a normal credit balance?
A. Withdrawals
B. Assets
C. Expenses
D. Revenues

Question 11

A chart of accounts
A. is set up in alphabetical order.
B. includes account balances.
C. is a listing of all the accounts used by a company.
D. All of the above

Question 12

Jim Walton performed services on credit for $2,450. A debit for this transaction should be recorded to
A. revenue.
B. accounts receivable.
C. accounts payable.
D. cash.

Question 13

An account that would be increased by a credit is
A. cash.
B. accounts receivable.
C. utilities expense.
D. accounts payable.

Question 14

The business bought supplies on account. To record this transaction,
A. an expense is debited, and a liability is credited.
B. an asset is debited, and an asset is credited.
C. an asset is debited, and a liability is credited.
D. None of the above

Question 15

A category that is not in the chart of accounts is
A. assets.
B. liabilities.
C. cash flows.
D. revenue.

Question 16

What would be the effect on accounts if the owner withdrew cash?
A. An asset would be debited, and an expense would be credited.
B. Withdrawals would be debited, and an asset would be credited.
C. An asset would be debited, and a revenue would be credited.
D. An asset would be debited, and Capital would be credited.

Question 17

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

Question 18

One asset would be debited and another would be credited if the business
A. provided services to a cash customer.
B. paid a creditor.
C. bought supplies paying cash.
D. provided services to a credit customer.

Question 19

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.

Question 20

A debit balance is a normal balance for which type of account?
A. Accounts payable
B. Revenue
C. Accounts receivable
D. Owner's capital.