Question 1

1 / 1 pts

Which of the following statements regarding a trial balance is TRUE?

A trial balance may be prepared at any time during the accounting period.

A trial balance shows whether total debits equal total credits.

A trial balance is a list of all accounts used in a business with their balances.

Correct!

All of the above are true.

Question 2

1 / 1 pts

Accounts Payable is an ________ account and has a normal ________ balance.

liability; debit

asset; credit

asset; debit

Correct!

liability; credit

Question 3

1 / 1 pts

An account will have a debit balance if:

the amount of the credits exceeds the amount of the debits.

it is a liability account.

the account has more debit entries than credit entries.

Correct!

the amount of the debits exceeds the amount of the credits.

Question 4

1 / 1 pts

The proper order for the accounting process is:

transaction occurs, posting, trAnsaction analyzed, journalizing.

transaction occurs, posting, journalizing.

Correct!

transaction occurs, trAnsaction analyzed, journalizing, and posting.

posting, transaction occurs, journalizing.

Question 5

1 / 1 pts

Which of the following statements is true of the Owner, Capital Account?

It is a liability account that has a normal debit balance.

Correct!

It is an equity account that has a normal credit balance.

It is a liability account that has a normal credit balance.

It is an equity account that has a normal debit balance.

Question 6

1 / 1 pts

When working with T accounts, an important rule to remember is:

when an account is debited, an amount is entered on the right-hand side on the T account.

the debit side of a T account is on the right-hand side of the T account for assets and expenses.

an increase to accounts payable will be recorded as a debit.

Correct!
 to credit an account meAns to enter an amount on the right-hand side of the T account.

Question 7

1 / 1 pts

In order to determine the balance in an account, you must look at the:

book of original entry.

Correct!

ledger.

journals.

source documents.

Question 8

1 / 1 pts

Prepaid Rent is an ________ account and has a normal ________ balance.

liability; credit

asset; credit

Correct!

asset; debit

liability; debit

Question 9

1 / 1 pts

Which of the following statements is true of expenses?

Expenses increase equity, so an expense account's normal balance is a debit balance.

Correct!

Expenses decrease equity, so an expense account's normal balance is a debit balance.

 Expenses increase equity, so an expense account's normal balance is a credit balance.

Expenses decrease equity, so an expense account's normal balance is a credit balance.

Question 10

1 / 1 pts

The Brownstone, capital account for Joe Brownstone, owner of Brownstone company, had the following
transactions for November: An additional capital contribution of $26,000 on November 1 and an
additional capital contribution of $26,000 on November 15. Assuming a beginning balance in
Brownstone, Capital Account was $16,000, what is the balance in Brownstone, Capital Account as of
November 15?

$42,000 credit

$42,000 debit

Correct!

$68,000 credit

$68,000 debit

Question 11

1 / 1 pts

A business paid $50,000 cash to purchase equipment. The business would:

debit Cash for $50,000 and credit Notes Payable for $50,000.

Correct!

debit Equipment for $50,000 and credit Cash for $50,000.

debit Equipment for $50,000 and credit Accounts Payable for $50,000.

debit Accounts Payable for $50,000 and credit Cash for $50,000.

Question 12

0 / 1 pts
For expenses, the category of account and its normal balance is ________.

equity and a credit balance

assets and a debit balance

Correct Answer

equity and a debit balance

assets and a credit balance

Question 13

1 / 1 pts

The entry to record the purchase of supplies on account includes a credit to:

Supplies Expense.

Correct!

Accounts Payable.

Cash.

Supplies.

Question 14

1 / 1 pts

Which error will be uncovered by a trial balance?

The bookkeeper recorded the same journal entry three times.

The bookkeeper forgot to record a journal entry for a large amount.

Correct!

The bookkeeper recorded a journal entry with a debit of $400 and a credit of $400, as a debit of $400
and a credit of $40.

The bookkeeper recorded both the debit and credit of a journal entry as $200 instead of $700.

Question 15
1 / 1 pts

A business purchased office supplies of $23,000 by signing a note. The business would:

Correct!

debit Supplies for $23,000 and credit Notes Payable for $23,000.

debit Supplies for $23,000 and credit Accounts Payable for $23,000.

debit Notes Receivable for $23,000 and Credit Supplies for $23,000.

debit Notes Payable for $23,000 and Credit Supplies Expense for $23,000.

Question 1

1 / 1 pts

The purchase of equipment, involving a cash down payment and a promise to pay the balance in the
future, includes:

a debit to Cash and a debit to Note Payable.

a debit to Note Payable and a credit to Cash.

a debit to Cash and a credit to Equipment.

Correct!

a credit to Cash and a credit to Accounts Payable.

Question 2

1 / 1 pts

A bookkeeper forgot to post a credit to accounts Receivable, but did post the debit part of the journal
entry correctly. Then:

total credits would exceed total debits on the trial balance.

Correct!

total debits would exceed total credits on the trial balance.

total debits and total credits would both be incorrect on the trial balance.
 the trial balance would still balance.

Question 3

0 / 1 pts

For expenses, the category of account and its normal balance is ________.

equity and a credit balance

Correct Answer

equity and a debit balance

assets and a debit balance

assets and a credit balance

Question 4

1 / 1 pts

Accounts Payable is an ________ account and has a normal ________ balance.

liability; debit

asset; credit

Correct!

liability; credit

asset; debit

Question 5

0 / 1 pts

The ledger:

Correct Answer

contains all the accounts used by a business.

is a grouping of all of the balance sheet accounts only.

 is a grouping of all the income statement accounts only.

contains only the permanent accounts used by a business.

Question 6

1 / 1 pts

Two employees worked one week and were paid salaries of $2500. The journal entry would:

debit Cash for $2500 and credit Salaries Payable for $2500.

Correct!

debit Salary Expense for $2500 and credit Cash for $2500.

debit Accounts Payable for $2500 and credit Salary Payable for $2500.

debit Cash for $2500 and credit Salary Expense for $2500.

Question 7

1 / 1 pts

A business purchased office supplies of $28,000 on account. The business would:

debit Accounts Payable for $28,000 and credit Supplies for $28,000.

debit Supplies for $28,000 and credit Cash for $28,000.

debit Accounts Receivable for $28,000 and credit Supplies for $28,000.

Correct!

debit Supplies for $28,000 and credit accounts Payable for $28,000.

Question 8

1 / 1 pts

The entry to record the purchase of supplies on account includes a credit to:

Cash.

Supplies Expense.
Correct!

Accounts Payable.

Supplies.

Question 9

1 / 1 pts

Which accounts are increased by debits?

Salaries Expense and common Stock

Correct!

Accounts Receivable and Utilities Expense

Cash and accounts Payable

Accounts Payable and Service Revenue

Question 10

1 / 1 pts

Which error will be uncovered by a trial balance?

The bookkeeper recorded the same journal entry three times.

The bookkeeper recorded both the debit and credit of a journal entry as $200 instead of $700.

The bookkeeper forgot to record a journal entry for a large amount.

Correct!

The bookkeeper recorded a journal entry with a debit of $400 and a credit of $400, as a debit of $400
and a credit of $40.

Question 11

1 / 1 pts

In order to determine the balance in an account, you must look at the:

Correct!

ledger.

source documents.

journals.

book of original entry.

Question 12

1 / 1 pts

What is the last step in the journalizing process?

Correct!

Record the trAnsaction in the journal.

Post the journal entry to the ledger.

Specify each account affected by the trAnsaction and classify each account by type.

Determine whether each account is increased or decreased by the trAnsaction.

Question 13

1 / 1 pts

The proper order for the accounting process is:

transaction occurs, posting, trAnsaction analyzed, journalizing.

transaction occurs, posting, journalizing.

Correct!

transaction occurs, trAnsaction analyzed, journalizing, and posting.

posting, transaction occurs, journalizing.

Question 14

1 / 1 pts
Company a received cash and issued stock to a new stockholder. In recording this trAnsaction:

common Stock would be debited.

Retained Earnings would be credited.

cash would be credited.

Correct!

cash would be debited.

Question 15

1 / 1 pts

Which one of the following account groups normally has a credit balance?

assets and liabilities

equity and assets

Correct!

liabilities and revenues

assets and expenses

Question 1

1 / 1 pts

Which of the following trAnsactions includes a credit to cash?

the collection of cash from an accounts receivable

receipt of cash from a customer when service is provided

Correct!

the payment of an accounts payable

the purchase of supplies on account

Question 2

1 / 1 pts
On March 31, baker company received a bill and paid for advertising costs for the current month. This
payment results in a:

Correct!

debit to advertising Expense.

credit to advertising Revenue.

debit to Prepaid advertising.

debit to cash.

Question 3

0 / 1 pts

In order to determine the balance in an account, you must look at the:

book of original entry.

journals.

source documents.

Correct Answer

ledger.

Question 4

1 / 1 pts

What is the last step in the journalizing process?

Post the journal entry to the ledger.

Determine whether each account is increased or decreased by the trAnsaction.

Correct!

Record the trAnsaction in the journal.

Specify each account affected by the trAnsaction and classify each account by type.
Question 5

1 / 1 pts

An account will have a debit balance if:

Correct!

the amount of the debits exceeds the amount of the credits.

the account has more debit entries than credit entries.

the amount of the credits exceeds the amount of the debits.

it is a liability account.

Question 6

1 / 1 pts

Accounts Payable is an ________ account and has a normal ________ balance.

asset; debit

Correct!

liability; credit

asset; credit

liability; debit

Question 7

0 / 1 pts

The ledger:

Correct Answer

contains all the accounts used by a business.

is a grouping of all the income statement accounts only.

is a grouping of all of the balance sheet accounts only.

contains only the permanent accounts used by a business.

Question 8

0 / 1 pts

Company a received cash and issued stock to a new stockholder. In recording this trAnsaction:

cash would be credited.

Retained Earnings would be credited.

common Stock would be debited.

Correct Answer

cash would be debited.

Question 9

0 / 1 pts

The trial balance is used to determine if:

total assets equal total liabilities.

total debits of the income statement accounts equal the total credits of the income statement
accounts.

Correct Answer

total debits of all the accounts equal total credits of all the accounts.

total debits of the balance sheet accounts equal the total credits of the balance sheet accounts.

Question 10

0 / 1 pts

Ranger Pool company owner, Susan Ranger, contributed cash of $40,000 to the business. Which of the
following accounts will be credited?

Cash

Accounts Payable
Correct Answer

Ranger, Capital

Accounts Receivable

Question 11

0 / 1 pts

a journal entry that debits cash and credits Accounts Receivable indicates that:

payment was made on account.

Correct Answer

payment was received on account.

revenue decreased.

revenue increased.

Question 12

0 / 1 pts

A business paid $50,000 cash to purchase equipment. The business would:

debit Accounts Payable for $50,000 and credit Cash for $50,000.

debit Equipment for $50,000 and credit Accounts Payable for $50,000.

debit Cash for $50,000 and credit Notes Payable for $50,000.

Correct Answer

debit Equipment for $50,000 and credit Cash for $50,000.

Question 13

1 / 1 pts

In order to see a complete trAnsaction in one place, you would need to look at the:

ledger.
 financial statements.

Correct!

journal.

trial balance.

Question 14

0 / 1 pts

Which error will be uncovered by a trial balance?

The bookkeeper forgot to record a journal entry for a large amount.

The bookkeeper recorded the same journal entry three times.

Correct Answer

The bookkeeper recorded a journal entry with a debit of $400 and a credit of $400, as a debit of $400
and a credit of $40.

The bookkeeper recorded both the debit and credit of a journal entry as $200 instead of $700.

Question 15

0 / 1 pts

Which of the following statements, regarding the rules of debits and credits, is CORRECT?

An asset is increased by a credit.

Common stock is increased by a debit.

Correct Answer

Revenue is increased by a credit.

C liability is increased by a debit.

Question 1

1 / 1 pts
The Dulce company has five plants nationwide that cost a total of $200 million. The current fair value of
the plants is $600 million. The plants will be recorded and reported as assets at

$800 million.

$400 million.

$600 million.

Correct!

$200 million.

Question 2

1 / 1 pts

During the year 2016, Dallas company earned revenues of $90,000, had expenses of $62,000, purchased
assets with a cost of $10,000 and had owner drawings of $6,000. Net income for the year is

$32,000.

Correct!

$28,000.

$22,000

$18,000

Question 3

1 / 1 pts

Which of the following events cannot be quantified into dollars and cents and recorded as an accounting
transaction?

The purchase of a new computer.

Payment of income taxes.

The sale of store equipment.

Correct!

The appointment of a new cPa firm to perform an audit.

Question 4

0 / 1 pts

Regarding the accounting equation, which of the following is a correct statement?

Assets - Liabilities = Equity.

The accounting equation is the basic tool of accounting.

Correct Answer

All of the statements are correct.

The accounting equation is made up of three parts.

Question 5

1 / 1 pts

Performed services for $3,000 on account; received cash on account, $8,000; paid $900 for repair
expense; paid $1,600 to a supplier that it owed from the previous month. What is the combined effect
on cash of these June trAnsactions?

$5,500 decrease

Correct!

$5,500 increase

$2,500 decrease

$8,000 increase

Question 6

1 / 1 pts

The CEO of Clarkson company owns a vacation home in Hawaii. Clarkson company owns a factory in
Detroit where it is headquartered. Which of these properties is considered to be assets of the business?

Correct!

only the factory in Detroit

neither the vacation home in Hawaii nor the factory in Detroit

 both the vacation home in Hawaii and the factory in Detroit

only the vacation home in Hawaii

Question 7

1 / 1 pts

Regarding liabilities, which of the following statements is incorrect?

Liabilities represent one of the two claims to assets.

Correct!

Liabilities are economic resources that are expected to benefit the business in the future.

A creditor who has loaned money to a business has a claim to some of the business's assets until the
business pays the debt.

Many, but not all, liabilities have the word payable in their titles.

Question 8

1 / 1 pts

The owners' equity of a business is equal to:

paid-in capital plus assets.

revenues minus expenses.

Correct!

assets minus liabilities.

assets plus liabilities.

Question 9

1 / 1 pts

Seidner company had the following account balances at the end of the first year of operations:

Revenues
$104,000

Salaries Expense

$13,000

Dividends

$14,000

Utilities Expense

$11,000

Advertising Expense

$8,000

Short-term Investments

$20,000

Cash

$38,000

Land

$50,000

Common Stock

$50,000

What is the amount of net income or net loss for the year?

Correct!

$72,000

$27,000

$35,000

$80,000

Question 10

1 / 1 pts
Which of the following would not be considered an internal user of accounting data for the LMN
company?

President of the company.

Merchandise inventory clerk.

Correct!

President of the employees' labor union.

Production manager.

Question 11

1 / 1 pts

The historical cost of an asset and its fair value are

the same when the asset is sold.

Correct!

the same on the date of acquisition.

never the same.

irrelevant when the asset is used by the business in its operations.

Question 12

1 / 1 pts

The assets of a company:

include property, plant, and equipment and accounts payable.

Correct!

represent economic resources that are expected to produce a future benefit.

must equal the liabilities of the company.

include short-term investments and notes payable.

Question 13
1 / 1 pts

A net loss occurs when:

not enough cash exists.

total revenues and dividends exceed total expenses and losses.

total revenues exceed total expenses.

Correct!

total expenses and losses exceed total revenues and gains.

Question 14

1 / 1 pts

Which financial statement answers the following question: How well did the company perform during
the year?

statement of retained earnings

balance sheet

Correct!

income statement

statement of cash flows

Question 15

1 / 1 pts

The assumption that the unit of measure remains sufficiently constant over time is part of the

Correct!

monetary unit assumption.

historical cost principle.

cost principle.

economic entity assumption.

Question 1

1 / 1 pts

The Rent Expense account of brownstone company has the following postings:

Rent expense

1,000

1,000

1,000

calculate the ending balance of the account.

$1,000 debit

Correct!

$3,000 debit

$2,000 credit

$0 balance

Question 2

0 / 1 pts

The ledger:

Correct Answer

contains all the accounts used by a business.

 is a grouping of all the income statement accounts only.

is a grouping of all of the balance sheet accounts only.

contains only the permanent accounts used by a business.

Question 3

1 / 1 pts

Company a received cash and issued stock to a new stockholder. In recording this trAnsaction:

common Stock would be debited.

Retained Earnings would be credited.

cash would be credited.

Correct!

cash would be debited.

Question 4

1 / 1 pts

If a journal entry includes a debit to Accounts Payable and a credit to cash:

Accounts Payable is increased.

Correct!

Accounts Payable is decreased.

Cash is increased.

Cash will have a credit balance.

Question 5

1 / 1 pts

Decreases in stockholders' equity that result from the cost of operating the business are:

revenues.
 assets.

Correct!

expenses.

liabilities.

Question 6

1 / 1 pts

Ranger Pool company owner, Susan Ranger, contributed cash of $40,000 to the business. Which of the
following accounts will be credited?

Correct!

Ranger, Capital

Accounts Receivable

Cash

Accounts Payable

Question 7

1 / 1 pts

Which of the following statements regarding a trial balance is TRUE?

A trial balance shows whether total debits equal total credits.

Correct!

All of the above are true.

A trial balance is a list of all accounts used in a business with their balances.

A trial balance may be prepared at any time during the accounting period.

Question 8

1 / 1 pts
When working with T accounts, an important rule to remember is:

when an account is debited, an amount is entered on the right-hand side on the T account.

Correct!

to credit an account meAns to enter an amount on the right-hand side of the T account.

an increase to accounts payable will be recorded as a debit.

the debit side of a T account is on the right-hand side of the T account for assets and expenses.

Question 9

1 / 1 pts

A business purchased office supplies of $23,000 by signing a note. The business would:

debit Supplies for $23,000 and credit Accounts Payable for $23,000.

debit Notes Receivable for $23,000 and Credit Supplies for $23,000.

debit Notes Payable for $23,000 and Credit Supplies Expense for $23,000.

Correct!

debit Supplies for $23,000 and credit Notes Payable for $23,000.

Question 10

1 / 1 pts

Which of the following statements is true of the Owner, Capital Account?

It is an equity account that has a normal debit balance.

It is a liability account that has a normal debit balance.

Correct!

It is an equity account that has a normal credit balance.

It is a liability account that has a normal credit balance.

Question 11

1 / 1 pts
A company sold land for the same price that they paid for it last year. When entering this transaction in
the journal, there will be a:

Correct!

credit to Land.

debit to Accounts Payable.

credit to Accounts Receivable.

debit to Land.

Question 12

1 / 1 pts

A business purchased office supplies of $28,000 on account. The business would:

debit Accounts Receivable for $28,000 and credit Supplies for $28,000.

Correct!

debit Supplies for $28,000 and credit accounts Payable for $28,000.

debit Accounts Payable for $28,000 and credit Supplies for $28,000.

debit Supplies for $28,000 and credit Cash for $28,000.

Question 13

1 / 1 pts

The trial balance is used to determine if:

total assets equal total liabilities.

Correct!

total debits of all the accounts equal total credits of all the accounts.

total debits of the balance sheet accounts equal the total credits of the balance sheet accounts.

total debits of the income statement accounts equal the total credits of the income statement
accounts.
Question 14

1 / 1 pts

The Accounts Payable account of Waterford company has the following postings:

mc035-1.jpg

calculate the ending balance of the account.

$15,000 debit

$11,000 credit

Correct!

$15,000 credit

$7,000 debit

Question 15

1 / 1 pts

A business paid $50,000 cash to purchase equipment. The business would:

debit Accounts Payable for $50,000 and credit Cash for $50,000.

debit Cash for $50,000 and credit Notes Payable for $50,000.

Correct!

debit Equipment for $50,000 and credit Cash for $50,000.

debit Equipment for $50,000 and credit Accounts Payable for $50,000.

Question 1

1 / 1 pts

A business purchased office supplies of $28,000 on account. The business would:

debit Supplies for $28,000 and credit Cash for $28,000.

Correct!

debit Supplies for $28,000 and credit accounts Payable for $28,000.

debit Accounts Payable for $28,000 and credit Supplies for $28,000.

debit Accounts Receivable for $28,000 and credit Supplies for $28,000.

Question 2

1 / 1 pts

Which of the following items would NOT be included in the journal entry for a trAnsaction?

the date the trAnsaction occurred

Correct!

the names of the employees involved in recording the trAnsaction

the titles of the accounts debited

the dollar amount of the trAnsaction

Question 3

1 / 1 pts

Prepaid Rent is an ________ account and has a normal ________ balance.

liability; credit

liability; debit

Correct!

asset; debit

asset; credit

Question 4

1 / 1 pts
On March 31, baker company received a bill and paid for advertising costs for the current month. This
payment results in a:

debit to Prepaid advertising.

debit to cash.

Correct!

debit to advertising Expense.

credit to advertising Revenue.

Question 5

1 / 1 pts

The purchase of office computers for cash includes a debit to:

Correct!

Office Equipment and a credit to Cash.

Cash and a credit to Office Equipment.

Accounts Receivable and credit to Office Equipment.

Office Equipment and a credit to Accounts Payable.

Question 6

1 / 1 pts

The purchase of equipment, involving a cash down payment and a promise to pay the balance in the
future, includes:

a debit to Cash and a credit to Equipment.

a debit to Cash and a debit to Note Payable.

a debit to Note Payable and a credit to Cash.

Correct!

a credit to Cash and a credit to Accounts Payable.

Question 7

1 / 1 pts

Which error will be uncovered by a trial balance?

The bookkeeper forgot to record a journal entry for a large amount.

Correct!

The bookkeeper recorded a journal entry with a debit of $400 and a credit of $400, as a debit of $400
and a credit of $40.

The bookkeeper recorded the same journal entry three times.

The bookkeeper recorded both the debit and credit of a journal entry as $200 instead of $700.

Question 8

1 / 1 pts

In order to determine the balance in an account, you must look at the:

source documents.

book of original entry.

Correct!

ledger.

journals.

Question 9

1 / 1 pts

Company a received cash and issued stock to a new stockholder. In recording this trAnsaction:

cash would be credited.

Retained Earnings would be credited.

common Stock would be debited.

Correct!
 cash would be debited.

Question 10

0 / 1 pts

The trial balance is used to determine if:

total debits of the balance sheet accounts equal the total credits of the balance sheet accounts.

total debits of the income statement accounts equal the total credits of the income statement
accounts.

Correct Answer

total debits of all the accounts equal total credits of all the accounts.

total assets equal total liabilities.

Question 11

1 / 1 pts

Which of the following statements is true of the Owner, Capital Account?

It is a liability account that has a normal credit balance.

It is an equity account that has a normal debit balance.

Correct!

It is an equity account that has a normal credit balance.

It is a liability account that has a normal debit balance.

Question 12

1 / 1 pts

The Brownstone, capital account for Joe Brownstone, owner of Brownstone company, had the following
transactions for November: An additional capital contribution of $26,000 on November 1 and an
additional capital contribution of $26,000 on November 15. Assuming a beginning balance in
Brownstone, Capital Account was $16,000, what is the balance in Brownstone, Capital Account as of
November 15?

Correct!

$68,000 credit

$68,000 debit

$42,000 debit

$42,000 credit

Question 13

1 / 1 pts

What is the last step in the journalizing process?

Specify each account affected by the trAnsaction and classify each account by type.

Correct!

Record the trAnsaction in the journal.

Determine whether each account is increased or decreased by the trAnsaction.

Post the journal entry to the ledger.

Question 14

1 / 1 pts

Which of the following statements regarding a trial balance is TRUE?

Correct!

All of the above are true.

A trial balance shows whether total debits equal total credits.

A trial balance is a list of all accounts used in a business with their balances.

A trial balance may be prepared at any time during the accounting period.

Question 15
1 / 1 pts

a journal entry that debits cash and credits Accounts Receivable indicates that:

Correct!

payment was received on account.

revenue increased.

revenue decreased.

payment was made on account.

Question 1

0 / 1 pts

Every journal entry:

must increase at least one account and decrease at least one account.

Correct Answer

must debit at least one account and credit at least one account.

is recorded in either the journal or the ledger.

affects both an income statement account and a balance sheet account.

Question 2

1 / 1 pts

Two employees worked one week and were paid salaries of $2500. The journal entry would:

debit Cash for $2500 and credit Salaries Payable for $2500.

Correct!

debit Salary Expense for $2500 and credit Cash for $2500.

debit Cash for $2500 and credit Salary Expense for $2500.

debit Accounts Payable for $2500 and credit Salary Payable for $2500.
Question 3

1 / 1 pts

A business paid $2500 on account. The journal entry would:

Correct!

debit Accounts Payable for $2500 and credit Cash for $2500.

debit Cash for $2500 and credit Accounts Payable for $2500.

debit Accounts Receivable for $2500 and credit Revenue for $2500.

debit Cash for $2500 and credit Retained Earnings for $2500.

Question 4

1 / 1 pts

Which of the following statements regarding a trial balance is TRUE?

A trial balance may be prepared at any time during the accounting period.

A trial balance is a list of all accounts used in a business with their balances.

A trial balance shows whether total debits equal total credits.

Correct!

All of the above are true.

Question 5

1 / 1 pts

For expenses, the category of account and its normal balance is ________.

assets and a credit balance

equity and a credit balance

assets and a debit balance

Correct!

equity and a debit balance

Question 6

1 / 1 pts

In order to see a complete trAnsaction in one place, you would need to look at the:

ledger.

Correct!

journal.

trial balance.

financial statements.

Question 7

1 / 1 pts

A business purchased office supplies of $28,000 on account. The business would:

debit Accounts Receivable for $28,000 and credit Supplies for $28,000.

debit Accounts Payable for $28,000 and credit Supplies for $28,000.

Correct!

debit Supplies for $28,000 and credit accounts Payable for $28,000.

debit Supplies for $28,000 and credit Cash for $28,000.

Question 8

1 / 1 pts

An owner makes an investment of cash into the business and receives shares of stock. This transaction is
recorded as a:

debit to cash and a credit to Retained Earnings.

debit to cash and a credit to Stockholder Revenue.

Correct!
 debit to cash and a credit to Common Stock.

debit to common Stock and a credit to cash.

Question 9

1 / 1 pts

The purchase of office computers for cash includes a debit to:

Accounts Receivable and credit to Office Equipment.

Cash and a credit to Office Equipment.

Office Equipment and a credit to Accounts Payable.

Correct!

Office Equipment and a credit to Cash.

Question 10

0 / 1 pts

The Salaries Payable account is an ________.

asset account with a normal credit balance

liability account with a normal debit balance

asset account with a normal debit balance

Correct Answer

liability account with a normal credit balance

Question 11

1 / 1 pts

The Rent Expense account of brownstone company has the following postings:

Rent expense
1,000

1,000

1,000

calculate the ending balance of the account.

Correct!

$3,000 debit

$2,000 credit

$1,000 debit

$0 balance

Question 12

1 / 1 pts

If a journal entry includes a debit to Accounts Payable and a credit to cash:

Cash will have a credit balance.

Cash is increased.

Accounts Payable is increased.

Correct!

Accounts Payable is decreased.

Question 13

1 / 1 pts
A bookkeeper forgot to post a credit to accounts Receivable, but did post the debit part of the journal
entry correctly. Then:

the trial balance would still balance.

total debits and total credits would both be incorrect on the trial balance.

Correct!

total debits would exceed total credits on the trial balance.

total credits would exceed total debits on the trial balance.

Question 14

0 / 1 pts

When working with T accounts, an important rule to remember is:

when an account is debited, an amount is entered on the right-hand side on the T account.

Correct Answer

to credit an account meAns to enter an amount on the right-hand side of the T account.

the debit side of a T account is on the right-hand side of the T account for assets and expenses.

an increase to accounts payable will be recorded as a debit.

Question 15

1 / 1 pts

The ledger:

is a grouping of all of the balance sheet accounts only.

is a grouping of all the income statement accounts only.

contains only the permanent accounts used by a business.

Correct!

contains all the accounts used by a business.

Question 1

1 / 1 pts

A company sold land for the same price that they paid for it last year. When entering this transaction in
the journal, there will be a:

Correct!

credit to Land.

debit to Land.

debit to Accounts Payable.

credit to Accounts Receivable.

Question 2

1 / 1 pts

The Brownstone, capital account for Joe Brownstone, owner of Brownstone company, had the following
transactions for November: An additional capital contribution of $26,000 on November 1 and an
additional capital contribution of $26,000 on November 15. Assuming a beginning balance in
Brownstone, Capital Account was $16,000, what is the balance in Brownstone, Capital Account as of
November 15?

$42,000 debit

Correct!

$68,000 credit

$68,000 debit

$42,000 credit

Question 3

1 / 1 pts

Which of the following statements regarding a trial balance is TRUE?

A trial balance is a list of all accounts used in a business with their balances.
 A trial balance may be prepared at any time during the accounting period.

A trial balance shows whether total debits equal total credits.

Correct!

All of the above are true.

Question 4

1 / 1 pts

On March 31, baker company received a bill and paid for advertising costs for the current month. This
payment results in a:

debit to Prepaid advertising.

debit to cash.

Correct!

debit to advertising Expense.

credit to advertising Revenue.

Question 5

1 / 1 pts

The Accounts Payable account of Waterford company has the following postings:

mc035-1.jpg

calculate the ending balance of the account.

$11,000 credit

$7,000 debit

$15,000 debit

Correct!

$15,000 credit
Question 6

1 / 1 pts

Which of the following trAnsactions includes a credit to cash?

the collection of cash from an accounts receivable

Correct!

the payment of an accounts payable

the purchase of supplies on account

receipt of cash from a customer when service is provided

Question 7

1 / 1 pts

The trial balance is used to determine if:

Correct!

total debits of all the accounts equal total credits of all the accounts.

total assets equal total liabilities.

total debits of the income statement accounts equal the total credits of the income statement
accounts.

total debits of the balance sheet accounts equal the total credits of the balance sheet accounts.

Question 8

1 / 1 pts

Prepaid Rent is an ________ account and has a normal ________ balance.

liability; debit

Correct!

asset; debit

asset; credit
 liability; credit

Question 9

0 / 1 pts

An owner makes an investment of cash into the business and receives shares of stock. This transaction is
recorded as a:

debit to cash and a credit to Retained Earnings.

debit to cash and a credit to Stockholder Revenue.

debit to common Stock and a credit to cash.

Correct Answer

debit to cash and a credit to Common Stock.

Question 10

1 / 1 pts

An account will have a debit balance if:

the amount of the credits exceeds the amount of the debits.

Correct!

the amount of the debits exceeds the amount of the credits.

the account has more debit entries than credit entries.

it is a liability account.

Question 11

1 / 1 pts

A business purchased office supplies of $28,000 on account. The business would:

debit Accounts Receivable for $28,000 and credit Supplies for $28,000.

debit Supplies for $28,000 and credit Cash for $28,000.

Correct!

debit Supplies for $28,000 and credit accounts Payable for $28,000.

debit Accounts Payable for $28,000 and credit Supplies for $28,000.

Question 12

1 / 1 pts

A business purchased office supplies of $23,000 by signing a note. The business would:

debit Notes Payable for $23,000 and Credit Supplies Expense for $23,000.

Correct!

debit Supplies for $23,000 and credit Notes Payable for $23,000.

debit Supplies for $23,000 and credit Accounts Payable for $23,000.

debit Notes Receivable for $23,000 and Credit Supplies for $23,000.

Question 13

1 / 1 pts

Which accounts are increased by debits?

Salaries Expense and common Stock

Correct!

Accounts Receivable and Utilities Expense

Cash and accounts Payable

Accounts Payable and Service Revenue

Question 14

1 / 1 pts

Which error will be uncovered by a trial balance?

The bookkeeper recorded both the debit and credit of a journal entry as $200 instead of $700.
 The bookkeeper recorded the same journal entry three times.

Correct!

The bookkeeper recorded a journal entry with a debit of $400 and a credit of $400, as a debit of $400
and a credit of $40.

The bookkeeper forgot to record a journal entry for a large amount.

Question 15

1 / 1 pts

A transaction that includes a debit to an expense and a credit to a liability indicates that:

liabilities decreased.

expenses decreased.

revenues increased.

Correct!

liabilities increased.

Question 1

1 / 1 pts

In order to see a complete trAnsaction in one place, you would need to look at the:

Correct!

journal.

financial statements.

ledger.

trial balance.

Question 2

1 / 1 pts
A business purchased office supplies of $23,000 by signing a note. The business would:

debit Notes Payable for $23,000 and Credit Supplies Expense for $23,000.

debit Notes Receivable for $23,000 and Credit Supplies for $23,000.

debit Supplies for $23,000 and credit Accounts Payable for $23,000.

Correct!

debit Supplies for $23,000 and credit Notes Payable for $23,000.

Question 3

0 / 1 pts

Entries are listed in the journal:

with income statement accounts first and then balance sheet accounts.

alphabetically.

Correct Answer

chronologically.

in order of importance.

Question 4

1 / 1 pts

Accounts Payable is an ________ account and has a normal ________ balance.

liability; debit

Correct!

liability; credit

asset; credit

asset; debit

Question 5

1 / 1 pts
When working with T accounts, an important rule to remember is:

when an account is debited, an amount is entered on the right-hand side on the T account.

an increase to accounts payable will be recorded as a debit.

the debit side of a T account is on the right-hand side of the T account for assets and expenses.

Correct!

to credit an account meAns to enter an amount on the right-hand side of the T account.

Question 6

1 / 1 pts

Which of the following items would NOT be included in the journal entry for a trAnsaction?

the date the trAnsaction occurred

the dollar amount of the trAnsaction

the titles of the accounts debited

Correct!

the names of the employees involved in recording the trAnsaction

Question 7

1 / 1 pts

Which of the following trAnsactions includes a credit to cash?

Correct!

the payment of an accounts payable

the purchase of supplies on account

the collection of cash from an accounts receivable

receipt of cash from a customer when service is provided

Question 8
1 / 1 pts

Which of the following statements is true of the Owner, Capital Account?

It is a liability account that has a normal debit balance.

It is a liability account that has a normal credit balance.

Correct!

It is an equity account that has a normal credit balance.

It is an equity account that has a normal debit balance.

Question 9

1 / 1 pts

Two employees worked one week and were paid salaries of $2500. The journal entry would:

debit Cash for $2500 and credit Salaries Payable for $2500.

debit Accounts Payable for $2500 and credit Salary Payable for $2500.

debit Cash for $2500 and credit Salary Expense for $2500.

Correct!

debit Salary Expense for $2500 and credit Cash for $2500.

Question 10

1 / 1 pts

The purchase of office computers for cash includes a debit to:

Office Equipment and a credit to Accounts Payable.

Correct!

Office Equipment and a credit to Cash.

Cash and a credit to Office Equipment.

Accounts Receivable and credit to Office Equipment.

Question 11

1 / 1 pts

A bookkeeper forgot to post a credit to accounts Receivable, but did post the debit part of the journal
entry correctly. Then:

total debits and total credits would both be incorrect on the trial balance.

the trial balance would still balance.

total credits would exceed total debits on the trial balance.

Correct!

total debits would exceed total credits on the trial balance.

Question 12

1 / 1 pts

The entry to record the purchase of supplies on account includes a credit to:

Cash.

Supplies Expense.

Supplies.

Correct!

Accounts Payable.

Question 13

1 / 1 pts

The Brownstone, capital account for Joe Brownstone, owner of Brownstone company, had the following
transactions for November: An additional capital contribution of $26,000 on November 1 and an
additional capital contribution of $26,000 on November 15. Assuming a beginning balance in
Brownstone, Capital Account was $16,000, what is the balance in Brownstone, Capital Account as of
November 15?

$42,000 credit
 $42,000 debit

$68,000 debit

Correct!

$68,000 credit

Question 14

1 / 1 pts

The trial balance is used to determine if:

total debits of the income statement accounts equal the total credits of the income statement
accounts.

Correct!

total debits of all the accounts equal total credits of all the accounts.

total assets equal total liabilities.

total debits of the balance sheet accounts equal the total credits of the balance sheet accounts.

Question 15

1 / 1 pts

Company a received cash and issued stock to a new stockholder. In recording this trAnsaction:

common Stock would be debited.

Retained Earnings would be credited.

cash would be credited.

Correct!

cash would be debited.

Question 1

1 / 1 pts
Accounts Payable is an ________ account and has a normal ________ balance.

liability; debit

asset; debit

Correct!

liability; credit

asset; credit

Question 2

0 / 1 pts

Every journal entry:

affects both an income statement account and a balance sheet account.

Correct Answer

must debit at least one account and credit at least one account.

is recorded in either the journal or the ledger.

must increase at least one account and decrease at least one account.

Question 3

1 / 1 pts

A business purchased office supplies of $28,000 on account. The business would:

debit Accounts Payable for $28,000 and credit Supplies for $28,000.

debit Accounts Receivable for $28,000 and credit Supplies for $28,000.

debit Supplies for $28,000 and credit Cash for $28,000.

Correct!

debit Supplies for $28,000 and credit accounts Payable for $28,000.

Question 4

0 / 1 pts
Which of the following statements is true of the Owner, Capital Account?

It is a liability account that has a normal debit balance.

It is an equity account that has a normal debit balance.

Correct Answer

It is an equity account that has a normal credit balance.

It is a liability account that has a normal credit balance.

Question 5

1 / 1 pts

In order to determine the balance in an account, you must look at the:

book of original entry.

journals.

Correct!

ledger.

source documents.

Question 6

1 / 1 pts

A company sold land for the same price that they paid for it last year. When entering this transaction in
the journal, there will be a:

credit to Accounts Receivable.

Correct!

credit to Land.

debit to Accounts Payable.

debit to Land.
Question 7

1 / 1 pts

Two employees worked one week and were paid salaries of $2500. The journal entry would:

Correct!

debit Salary Expense for $2500 and credit Cash for $2500.

debit Cash for $2500 and credit Salary Expense for $2500.

debit Accounts Payable for $2500 and credit Salary Payable for $2500.

debit Cash for $2500 and credit Salaries Payable for $2500.

Question 8

1 / 1 pts

Decreases in stockholders' equity that result from the cost of operating the business are:

Correct!

expenses.

assets.

revenues.

liabilities.

Question 9

1 / 1 pts

What is the last step in the journalizing process?

Specify each account affected by the trAnsaction and classify each account by type.

Post the journal entry to the ledger.

Correct!

Record the trAnsaction in the journal.

Determine whether each account is increased or decreased by the trAnsaction.

Question 10

0 / 1 pts

For expenses, the category of account and its normal balance is ________.

assets and a debit balance

assets and a credit balance

Correct Answer

equity and a debit balance

equity and a credit balance

Question 11

1 / 1 pts

A transaction that includes a debit to an expense and a credit to a liability indicates that:

expenses decreased.

revenues increased.

liabilities decreased.

Correct!

liabilities increased.

Question 12

1 / 1 pts

The ledger:

contains only the permanent accounts used by a business.

is a grouping of all the income statement accounts only.

Correct!

contains all the accounts used by a business.

 is a grouping of all of the balance sheet accounts only.

Question 13

1 / 1 pts

When working with T accounts, an important rule to remember is:

Correct!

to credit an account meAns to enter an amount on the right-hand side of the T account.

an increase to accounts payable will be recorded as a debit.

the debit side of a T account is on the right-hand side of the T account for assets and expenses.

when an account is debited, an amount is entered on the right-hand side on the T account.

Question 14

0 / 1 pts

Which of the following statements regarding a trial balance is TRUE?

A trial balance may be prepared at any time during the accounting period.

A trial balance is a list of all accounts used in a business with their balances.

Correct Answer

All of the above are true.

A trial balance shows whether total debits equal total credits.

Question 15

1 / 1 pts

The Rent Expense account of brownstone company has the following postings:

Rent expense

1,000
1,000

1,000

calculate the ending balance of the account.

$0 balance

$1,000 debit

$2,000 credit

Correct!

$3,000 debit

Question 1

1 / 1 pts

Accounts Payable is an ________ account and has a normal ________ balance.

liability; debit

asset; debit

Correct!

liability; credit

asset; credit

Question 2

0 / 1 pts

Every journal entry:

 affects both an income statement account and a balance sheet account.

Correct Answer

must debit at least one account and credit at least one account.

is recorded in either the journal or the ledger.

must increase at least one account and decrease at least one account.

Question 3

1 / 1 pts

A business purchased office supplies of $28,000 on account. The business would:

debit Accounts Payable for $28,000 and credit Supplies for $28,000.

debit Accounts Receivable for $28,000 and credit Supplies for $28,000.

debit Supplies for $28,000 and credit Cash for $28,000.

Correct!

debit Supplies for $28,000 and credit accounts Payable for $28,000.

Question 4

0 / 1 pts

Which of the following statements is true of the Owner, Capital Account?

It is a liability account that has a normal debit balance.

It is an equity account that has a normal debit balance.

Correct Answer

It is an equity account that has a normal credit balance.

It is a liability account that has a normal credit balance.

Question 5

1 / 1 pts
In order to determine the balance in an account, you must look at the:

book of original entry.

journals.

Correct!

ledger.

source documents.

Question 6

1 / 1 pts

A company sold land for the same price that they paid for it last year. When entering this transaction in
the journal, there will be a:

credit to Accounts Receivable.

Correct!

credit to Land.

debit to Accounts Payable.

debit to Land.

Question 7

1 / 1 pts

Two employees worked one week and were paid salaries of $2500. The journal entry would:

Correct!

debit Salary Expense for $2500 and credit Cash for $2500.

debit Cash for $2500 and credit Salary Expense for $2500.

debit Accounts Payable for $2500 and credit Salary Payable for $2500.

debit Cash for $2500 and credit Salaries Payable for $2500.

Question 8
1 / 1 pts

Decreases in stockholders' equity that result from the cost of operating the business are:

Correct!

expenses.

assets.

revenues.

liabilities.

Question 9

1 / 1 pts

What is the last step in the journalizing process?

Specify each account affected by the trAnsaction and classify each account by type.

Post the journal entry to the ledger.

Correct!

Record the trAnsaction in the journal.

Determine whether each account is increased or decreased by the trAnsaction.

Question 10

0 / 1 pts

For expenses, the category of account and its normal balance is ________.

assets and a debit balance

assets and a credit balance

Correct Answer

equity and a debit balance

equity and a credit balance

Question 11

1 / 1 pts

A transaction that includes a debit to an expense and a credit to a liability indicates that:

expenses decreased.

revenues increased.

liabilities decreased.

Correct!

liabilities increased.

Question 12

1 / 1 pts

The ledger:

contains only the permanent accounts used by a business.

is a grouping of all the income statement accounts only.

Correct!

contains all the accounts used by a business.

is a grouping of all of the balance sheet accounts only.

Question 13

1 / 1 pts

When working with T accounts, an important rule to remember is:

Correct!

to credit an account meAns to enter an amount on the right-hand side of the T account.

an increase to accounts payable will be recorded as a debit.

the debit side of a T account is on the right-hand side of the T account for assets and expenses.

when an account is debited, an amount is entered on the right-hand side on the T account.
Question 14

0 / 1 pts

Which of the following statements regarding a trial balance is TRUE?

A trial balance may be prepared at any time during the accounting period.

A trial balance is a list of all accounts used in a business with their balances.

Correct Answer

All of the above are true.

A trial balance shows whether total debits equal total credits.

Question 15

1 / 1 pts

The Rent Expense account of brownstone company has the following postings:

Rent expense

1,000

1,000

1,000

calculate the ending balance of the account.

$0 balance

$1,000 debit
 $2,000 credit

Correct!

$3,000 debit

Question 1

1 / 1 pts

A business paid $50,000 cash to purchase equipment. The business would:

Correct!

debit Equipment for $50,000 and credit Cash for $50,000.

debit Cash for $50,000 and credit Notes Payable for $50,000.

debit Accounts Payable for $50,000 and credit Cash for $50,000.

debit Equipment for $50,000 and credit Accounts Payable for $50,000.

Question 2

1 / 1 pts

The Salaries Payable account is an ________.

asset account with a normal debit balance

asset account with a normal credit balance

Correct!

liability account with a normal credit balance

liability account with a normal debit balance

Question 3

1 / 1 pts

Two employees worked one week and were paid salaries of $2500. The journal entry would:

debit Accounts Payable for $2500 and credit Salary Payable for $2500.
 debit Cash for $2500 and credit Salaries Payable for $2500.

debit Cash for $2500 and credit Salary Expense for $2500.

Correct!

debit Salary Expense for $2500 and credit Cash for $2500.

Question 4

1 / 1 pts

An account will have a debit balance if:

Correct!

the amount of the debits exceeds the amount of the credits.

it is a liability account.

the amount of the credits exceeds the amount of the debits.

the account has more debit entries than credit entries.

Question 5

1 / 1 pts

A bookkeeper forgot to post a credit to accounts Receivable, but did post the debit part of the journal
entry correctly. Then:

total credits would exceed total debits on the trial balance.

Correct!

total debits would exceed total credits on the trial balance.

the trial balance would still balance.

total debits and total credits would both be incorrect on the trial balance.

Question 6

1 / 1 pts
On March 31, baker company received a bill and paid for advertising costs for the current month. This
payment results in a:

debit to cash.

Correct!

debit to advertising Expense.

debit to Prepaid advertising.

credit to advertising Revenue.

Question 7

0 / 1 pts

When an expense account is increased:

cash must always be credited.

Correct Answer

an amount is entered on the debit side of the expense account.

stockholders' equity is not affected.

an amount is entered on the credit side of the expense account.

Question 8

1 / 1 pts

Accounts Payable is an ________ account and has a normal ________ balance.

liability; debit

Correct!

liability; credit

asset; credit

asset; debit

Question 9
1 / 1 pts

For expenses, the category of account and its normal balance is ________.

equity and a credit balance

assets and a debit balance

Correct!

equity and a debit balance

assets and a credit balance

Question 10

1 / 1 pts

Which of the following statements, regarding the rules of debits and credits, is CORRECT?

C liability is increased by a debit.

Correct!

Revenue is increased by a credit.

An asset is increased by a credit.

Common stock is increased by a debit.

Question 11

1 / 1 pts

Yellow company had a balance of $34,000 in Accounts Payable at the beginning of June, and purchased
$100,000 of merchandise on account during the month. at the end of June, Yellow's accounts Payable
balance was $31,000. What amount did Yellow pay on account during June?

Correct!

$103,000

$100,000

$69,000
 $35,000

Question 12

1 / 1 pts

In order to determine the balance in an account, you must look at the:

source documents.

book of original entry.

journals.

Correct!

ledger.

Question 13

1 / 1 pts

The Rent Expense account of brownstone company has the following postings:

Rent expense

1,000

1,000

1,000

calculate the ending balance of the account.

$1,000 debit
 $0 balance

$2,000 credit

Correct!

$3,000 debit

Question 14

1 / 1 pts

Decreases in stockholders' equity that result from the cost of operating the business are:

assets.

revenues.

liabilities.

Correct!

expenses.

Question 15

0 / 1 pts

Every journal entry:

Correct Answer

must debit at least one account and credit at least one account.

affects both an income statement account and a balance sheet account.

is recorded in either the journal or the ledger.

must increase at least one account and decrease at least one account.