accounting_basics_lesson 6

Question 1 of 20

Which statement about the rules of debit and credit is true?

[removed] A. If accounts receivable is decreased with a credit, the normal balance is a credit.
[removed] B. If accounts payable is increased with a credit, the normal balance is a credit.
[removed] C. If capital is increased with a debit, the normal balance is a debit.
[removed] D. If cash is decreased with a debit, the normal balance is a debit.

Question 2 of 20

The ledger is a

[removed] A. group of accounts that records data from business transactions.
[removed] B. tool used to make sure that all accounts have normal balances.
[removed] C. chronological record of the day’s transactions.
[removed] D. tool used to ensure that debits equal credits.

Question 3 of 20

When recording transactions in two or more accounts and the totals of the debits and credits are equal, it’s called

[removed] A. debiting.
[removed] B. crediting.
[removed] C. posting.
[removed] D. double-entry bookkeeping.

Question 4 of 20

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

[removed] A. $800 debit.
[removed] B. $800 credit.
[removed] C. $2,600 credit.
[removed] D. $2,600 debit.

Question 5 of 20

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

[removed] A. debit of $2,000.
[removed] B. credit of $3,000.
[removed] C. debit of $3,000.
[removed] D. credit of $2,000.

Question 6 of 20

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

[removed] A. $55 debit.
[removed] B. $55 credit.
[removed] C. $95 debit.
[removed] D. $95 credit.
Question 7 of 20

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

[removed] A. $2,000.
[removed] B. $6,000.
[removed] C. $4,500.
[removed] D. $3,000.

Question 8 of 20

Which entry records the investment of cash by John, owner of a sole proprietorship?

[removed] A. Debit John, Capital; credit Cash
[removed] B. Debit Cash; credit John, Withdrawals
[removed] C. Debit John, Withdrawals; credit Cash
[removed] D. Debit Cash; credit John, Capital

Question 9 of 20

The owner invested personal equipment in the business. To record this transaction,

[removed] A. debit Equipment and credit Accounts Payable.
[removed] B. debit Accounts Payable and credit Equipment.
[removed] C. debit Equipment and credit Capital.
[removed] D. credit Equipment and debit Capital.

Question 10 of 20

The accounts payable account is a/an _______, and it has a normal _______ balance.

[removed] A. revenue; debit
[removed] B. expense; credit
[removed] C. liability; debit
[removed] D. liability; credit

Question 11 of 20

Accounts Payable had a normal starting balance of $800. There were debit postings of $600 and credit postings of $300 during the month. The ending balance is a

[removed] A. $500 credit.
[removed] B. $1,000 debit.
[removed] C. $500 debit.
[removed] D. $1,000 credit.

Question 12 of 20

A category that is not in the chart of accounts is

[removed] A. assets.
[removed] B. liabilities.
[removed] C. cash flows.
[removed] D. revenue.

Question 13 of 20

A debit balance is a normal balance for which type of account?

[removed] A. Accounts payable
[removed] B. Revenue
[removed] C. Accounts receivable
[removed] D. Owner’s capital

Question 14 of 20

A liability would be credited and an expense would be debited if the business

[removed] A. paid a creditor.
[removed] B. incurred an expense and didn’t pay the expense immediately.
[removed] C. bought supplies on account.
[removed] D. bought supplies for cash.

Question 15 of 20

The business incurred an expense and paid it immediately. To record this transaction,

[removed] A. an expense is debited, and a liability is credited.
[removed] B. an expense is debited, and an asset is credited.
[removed] C. an expense is debited, and Capital is credited.
[removed] D. None of the above

Question 16 of 20

Which type of account has a normal credit balance?

[removed] A. Withdrawals
[removed] B. Assets
[removed] C. Expenses
[removed] D. Revenues

Question 17 of 20

The left side of any account is the

[removed] A. debit side.
[removed] B. credit side.
[removed] C. ending balance.
[removed] D. footings.

Question 18 of 20

An account that would be increased by a credit is

[removed] A. cash.
[removed] B. accounts receivable.
[removed] C. utilities expense.
[removed] D. accounts payable.

Question 19 of 20

The owner of BobCats R Us paid his personal MasterCard bill using a company check. What is the correct entry to record the transaction?

[removed] A. Credit Cash; debit Capital
[removed] B. Credit Cash; debit Supplies Expense
[removed] C. Credit Cash; debit Withdrawals
[removed] D. Credit Cash; debit Accounts Receivable

Question 20 of 20

An account is said to have a debit balance if

[removed] A. the footing of the debits exceeds the footing of the credits.
[removed] B. there are more entries on the debit side than on the credit side.
[removed] C. its normal balance is debit without regard to the amounts or number of entries on the debit side.
[removed] D. the last entry of the accounting period was posted on the debit side.

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