Homework Questions T Accounts & More

Homework Questions T Accounts & More
1. MC.02.001

The plus side of a T account represents the:

a.double balance of that account.

b.normal balance of that account.

c.standard balance of that account.

d.trial balance of that account.

e.footings balance of that account.

2. MC.02.002

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

a.on the side with the least number of items.

b.on the side with the larger total.

c.on the side with the smaller total.

d.on the side with the greatest number of items.

e.in none of these locations.

3. MC.02.003

Which of the following accounts decrease when they are debited?

a.Assets and Drawing

b.Expenses and Assets

c.Drawing and Capital

d.Liabilities and Expenses

e.Capital and Liabilities

4. MC.02.004

A debit may result in

a.an increase in an asset account.

b.a decrease in a liability account.

c.a decrease in a revenue account.

d.an increase in an expense account.

e.All of these choices are correct.

5. MC.02.005

A credit may result in

a.an increase in a revenue account.

b.an increase in a liability account.

c.an increase in the Capital account.

d.a decrease in an asset account.

e.All of these choices are correct.

6. MC.02.006

A credit may result in

a.an increase in an asset account.

b.a decrease in a liability account.

c.a decrease in the Capital account.

d.an increase in a liability account.

e.None of these choices are correct.

7. MC.02.007

Which of the following classifications of accounts has/have a normal credit balance?

a.Revenues

b.Revenues and liabilities

c.Liabilities

d.Drawing

e.All of these choices are correct.

8. MC.02.008

Which of the following describes the classification and normal balance of H. Gale, Capital?

a.Revenue, credit

b.Asset, debit

c.Owner’s equity, debit

d.Expense, debit

e.None of these choices are correct.

9. MC.02.009

Which of the following describes the classification and normal balance of the Income from Services account?

a.Asset, credit

b.Capital, debit

c.Revenue, credit

d.Expense, debit

e.Asset, debit

10. MC.02.010

An example of an asset account is:

a.Purchases.

b.Sales.

c.Wages Payable.

d.Accounts Receivable.

e.Rental Income.

11. MC.02.012

If a $47 cash purchase of supplies is recorded as a $57 debit to Supplies Expense and a $57 credit to Cash, the result will be that

a.the trial balance will be out of balance.

b.the Cash account will be overstated.

c.Supplies Expense will be overstated and Supplies will be understated.

d.the Supplies Expense account will be understated.

e.None of these choices will be true.

12. MC.02.013

A purchase of supplies on account should be recorded as

a.a debit to Accounts Payable and a credit to Supplies.

b.a debit to Supplies and a credit to Cash.

c.a debit to Supplies Expense and a credit to Accounts Receivable.

d.a debit to Supplies and a credit to Accounts Payable.

e.None of these choices are correct.

13. MC.02.014

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

a.Debit an expense account and credit an asset account

b.Debit an asset account and credit an asset account

c.Debit a liability account and credit an asset account

d.Debit an asset account and credit an expense account

e.None of these choices are correct.

14. MC.02.015

The receipt of cash on account from a customer should be recorded as

a.a debit to Cash and a credit to Income from Services.

b.a debit to Cash and a credit to Accounts Payable.

c.a debit to Cash and a credit to the Capital account.

d.a debit to Cash and a credit to Accounts Receivable.

e.None of these choices are correct.

15. MC.02.016

The asset that a business enterprise creates when it maintains accounts for its charge customers is

a.Drawing.

b.Accounts Receivable.

c.Capital.

d.Accounts Payable.

e.None of these choices are correct.

16. MC.02.017

Which of the following entries records the withdrawal of cash for personal use by D. Bill, the owner of a business?

a.Debit Salary Expense and credit Cash

b.Debit D. Bill, Drawing and credit Cash

c.Debit Cash and credit D. Bill, Drawing

d.Debit Cash and credit Salary Expense

e.None of these choices are correct.

17. MC.02.018

A list of account balances in two columns—one labelled “Debit” and one labelled “Credit” is the:

a.balance sheet.

b.owner’s equity statement.

c.trial balance.

d.ledger balance.

e.journal balance.

18. MC.02.019

To locate an error in a trial balance,

a.check footings and balances of the accounts.

b.re-add.

c.verify figures transferred from the account to the trial balance.

d.look for the correct location of normal balances.

e.do all of these choices are correct.

19. MC.02.020

The trial balance will not expose which of the following problems?

a.Recording half an entry and leaving out an entire entry

b.Recording half an entry and recording both halves of an entry on the same side

c.Leaving out an entire entry

d.Recording both halves of an entry on the same side

e.Recording half an entry

20. MC.02.021

The Accounts Receivable T account shows the following debit and credit amounts:

$300, debit
$1,000, debit
$500, credit
$120, credit

What is the balance of the account?

a.$500, credit

b.$2,000, debit

c.$680, debit

d.$900, credit

e.$1,200, debit

21. MC.02.022

The Accounts Payable T account shows the following debit and credit amounts:

$1,200, debit
$3,500, debit
$8,240, credit
$100, credit

What is the balance of the account?

a.$3,640, credit

b.$4,700, debit

c.$8,340, credit

d.$8,340, debit

e.$3,640, debit

22. MC.02.024

In a T account form, the left side is the increase side for:

a.capital.

b.revenue.

c.assets.

d.liabilities.

23. MC.02.025

Which of the following is not true concerning T accounts?

a.The left side of an expense account is an increase.

b.The right side of a revenue 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.

24. MC.02.026

Which of the following is correct?

a.Credit is the normal balance of the accounts receivable account.

b.Debit is the normal balance of the Income from Services account.

c.Debit is the normal balance of the accounts payable account.

d.Debit is the normal balance of the Drawing account.

25. MC.02.027

Which of the following is true?

a.A liability account would be increased with a debit.

b.An asset account would be decreased with a debit.

c.An expense account would be increased with a credit.

d.A revenue account would be increased with a credit.

26. MC.02.028

Which of the following is not true?

a.A liability account would be increased with a credit.

b.An asset account would be decreased with a credit.

c.The drawing account would be increased with a debit.

d.The capital account would be increased with a debit.

27. MC.02.030

Ready Company received a bill for advertising. The accountant would record a

a.credit to advertising expense.

b.credit to cash.

c.credit to accounts payable.

d.credit to accounts receivable.

28. MC.02.031

Which of the following is correct, assuming the following transaction:

R. Dirk invested $20,000 cash in the business.

a.Cash is credited.

b.R. Dirk, Capital is debited.

c.Income from Services is credited.

d.Cash is debited.

29. MC.02.032

Which of the following is correct, assuming the following transaction:

Kennedy Company received and paid the rent for the month.

a.Rent Expense is debited.

b.Cash is debited.

c.Rent Expense is credited.

d.Accounts Payable is debited.

30. MC.02.033

Which of the following is correct, assuming the following transaction:

Nixon Company sold services on account.

a.Income from Services is credited.

b.Cash is debited.

c.Accounts Receivable is credited.

d.Cash is credited.

31. MC.02.034

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

a.credit to cash, $2,300.

b.debit to income from services, $2,300.

c.credit to income from services, $2,300.

d.debit to accounts receivable, $2,300.

e.credit to accounts receivable, $2,300.

32. MC.02.035

A _______________ is a transaction that requires more than one debit or more than one credit to be recorded.

a.complex entry

b.compound entry

c.double entry

d.deluxe entry

33. MC.02.036

Income from Services would be shown on the ______________.

a.debit side of the trial balance

b.credit side of the trial balance

c.on both the debit and credit side of the trial balance

d.not on the trial balance

34. MC.02.041

Which of the following statements shows the difference in total revenue and total expenses and reports the performance of a business?

a.An income statement

b.A balance sheet

c.A statement of owner’s equity

d.A funds flow statement

35. MC.02.042

Net income results when:

a.total revenue exceeds total expenses over the period.

b.total revenue is less than total liabilities over the period.

c.total revenue exceeds total liabilities over the period.

d.total revenue is less than total expenses over the period.

36. MC.02.044

R. 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 net income for the year?

a.$3,500

b.$1,030

c.$1,830

d.$5,080

37. MC.02.047

The ________________ shows how and why the owner’s equity account has changed over a stated period of time.

a.balance sheet

b.statement of owner’s equity

c.income statement

d.statement of change

38. MC.02.048

The ________________ shows the financial position of a company.

a.statement of owner’s equity

b.income statement

c.balance sheet

d.None of these listed answers are correct.

39. MC.02.055

The order the financial statements are prepared is as follows:

a.income statement, statement of owner’s equity, balance sheet

b.income statement, balance sheet, statement of owner’s equity

c.balance sheet, income statement, statement of owner’s equity

d.statement of owner’s equity, income statement, balance sheet

40. MC.02.054

Owner withdrawals are reported on which financial statement?

a.statement of owner’s equity

b.income statement

c.balance sheet

d.None of these listed answers are correct.