2.2   Learning Objective 2-2

 

1) An accounting device used to record increases and decreases in individual assets, liabilities, capital, revenue, expenses, and withdrawals is a(n):

A) chart of accounts.

B) account.

C) trial balance.

D) footing.

 

2) A compound entry is:

A) a transaction involving more than one debit and/or credit.

B) used to prepare the trial balance.

C) the same as the chart of accounts.

D) found on the income statement.

 

3) A formal account that has columns for date, explanation, post reference, debit, and credit is called the:

A) T account.

B) standard account form.

C) ledger.

D) chart of accounts.

4) A ledger:

A) is a group of accounts and their balances.

B) can replace the financial statements.

C) is the same as a chart of accounts.

D) None of these answers are correct.

 

5) The left side of any account is the:

A) debit side.

B) credit side.

C) ending balance.

D) footings.

 

6) The right side of any account is the:

A) debit side.

B) credit side.

C) ending balance.

D) footings.

 

7) The side that increases the account balance, by the rules of debit and credit, is said to be the:

A) debit side.

B) credit side.

C) normal balance.

D) None of these answers are correct.

8) The Accounts Payable account is:

A) a revenue, and it has a normal debit balance.

B) an expense, and it has a normal credit balance.

C) a liability, and it has a normal debit balance.

D) a liability, and it has a normal credit balance.

 

9) An account that would be increased by a credit is:

A) Cash.

B) Accounts Receivable.

C) Utilities Expense.

D) Accounts Payable.

 

10) An account is said to have a debit balance if:

A) the footing of the debits exceeds the footing of the credits.

B) there are more entries on the debit side than on the credit side.

C) its normal balance is debit without regard to the amounts or number of entries on the debit side.

D) the last entry of the accounting period was posted on the debit side.

 

 

 



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