Multiple Choice Question 57 An accountant has debited an asset account for $1,300 and credited a liability account for $500. Which of the following would be an incorrect way to complete the recording of the transaction? Credit an owner's equity accoun
Fin-Acc-BossMultiple Choice Question 57
An accountant has debited an asset account for $1,300 and credited a liability account for $500. Which of the following would be an incorrect way to complete the recording of the transaction?
Credit an owner's equity account for $800. |
Debit an owner's equity account for $800. |
Credit an asset account for $800. |
Credit another liability account for $800. |
Multiple Choice Question 58
Which of the following is not true of the terms debit and credit?
They can be interpreted to mean left and right. |
They can be abbreviated as Dr. and Cr. |
They can be interpreted to mean increase and decrease. |
They can be used to describe the balance of an account. |
Multiple Choice Question 71
TransAm Mail Service purchased equipment for $2,000. TransAm paid $400 in cash and signed a note for the balance. TransAm debited the Equipment account, credited Cash and
credited another asset account for $400. |
credited a liability account for $1,600. |
1,600. |
nothing further must be done. |
Multiple Choice Question 73
On January 14, Edamame Industries purchased supplies of $700 on account. The entry to record the purchase will include
a debit to Supplies and a credit to Cash. |
a debit to Supplies Expense and a credit to Accounts Receivable. |
a debit to Accounts Receivable and a credit to Supplies. |
a debit to Supplies and a credit to Accounts Payable. |
Multiple Choice Question 78
Chik Chik Company showed the following balances at the end of its first year:
Cash | $ 6,000 |
Prepaid insurance | 9,400 |
Accounts receivable | 7000 |
Accounts payable | 5,600 |
Notes payable | 8,400 |
Owner’s Capital | 2,800 |
Owner’s Drawings | 1,400 |
Revenues | 44,000 |
Expenses | 35,000 |
What did Chik Chik Company show as total credits on its trial balance?
$60,800 |
$62,200 |
$70,200 |
$51,400 |
Multiple Choice Question 87
The final step in the recording process is to
enter the transaction in a journal. |
prepare a trial balance. |
analyze each transaction. |
transfer journal information to ledger accounts. |
Multiple Choice Question 99
When three or more accounts are required in one journal entry, the entry is referred to as a
multiple entry. |
compound entry. |
simple entry. |
triple entry. |
Multiple Choice Question 108
When journalizing, the reference column is
used to reference the |
used to reference the journal page. |
used to reference the financial statements. |
left blank. |
Multiple Choice Question 120
Camper Van Company purchased equipment for $2,600 cash. As a result of this event,
total assets remained unchanged. |
owner's equity decreased and total assets increased by $2,600. |
total assets increased by $2,600. |
owner's equity decreased by $2,600. |
Multiple Choice Question 136
A trial balance is a listing of
the chart of accounts. |
general ledger accounts and balances. |
the totals from the journal pages. |
transactions in a journal. |
10 years ago
