NAME

Question types


Start with


Question limit

of 116 available terms

Print test

116 True/False questions

  1. Prepare a trial balance by indicating whether each account balance is listed in the debit column or credit column. Accounts Payable = $3,000.Increase in Credit, Decrease in Debit

          

  2. Utilities Expense is..?Debit

          

  3. Pay employees $6,000 for the first month's salaries.Assets decrease and stockholders' equity decreases.

          

  4. What is the Financial Accounting Equation if you Receive a bill of $200 for utility costs in the current period.$0 = +$200 + -$200

          

  5. When you Pay a cash dividend it is...?Debit dividends; credit cash

          

  6. Equipment is..?Debit

          

  7. T-accountA simplified form of a general ledger account with space at the top for the accounts title and two sides for recording debits and credits

          

  8. Which of the following is used to increase the balance of an asset account? Debit or Credit?Accounts Payable, Service Revenue, Common Stock.

          

  9. Whats the impact of assets, liabilities and equity equation if you pay utilities of $2000 for the current month?Assets(-20000)=Liabilities(-20000)+Equity(0)

          

  10. Prepare a trial balance by indicating whether each account balance is listed in the debit column or credit column. Common Stock = $9,000.Increase in Credit, Decrease in Debit

          

  11. Issue 10,000 shares of common stock in exchange for $32,000 in cashassets increase, and stockholders' equity increases.

          

  12. Financial Accounting Standards BoardBody that is attempting to develop a single set of high-quality, understandable global accounting standards.

          

  13. Receive cash for $12,000 in rental fees for the current monthAssets increase and stockholders' equity increases.

          

  14. External transactionsTransactions the firm conducts with a separate economic entity

          

  15. Which of the following accounts would normally have a credit balance?Accounts Payable, Service Revenue, Common Stock.

          

  16. Which of the following is used to increase the balance of an expense account? Debit or Credit?Credit

          

  17. Indicate how to increase and decrease each account listed below by selecting debit or credit. Salaries PayableIncrease in Credit, Decrease in Debit

          

  18. (pic) Cash T-Account

          

  19. When you Provide services to customers on account it is...?Debit accounts receivable; credit service revenue

          

  20. (pic) Chart of accountsA summary of the effects of all transactions related to a particular item over a period of time

          

  21. Which of the accounts are decreased on the debit side and increased on the credit side?Debit

          

  22. Salaries Expense is..?Credit

          

  23. Indicate how to increase and decrease each account listed below by selecting debit or credit. Unearned RevenueDebit

          

  24. What happens to assets, liability, and equity when you purchase equipment for cash?No effect on all 3

          

  25. Determine the amount to post to the Cash T-account. Provide services to customers for $26,000 cash.700 Credit

          

  26. A company received a bill for newspaper advertising services received, $390. The bill will be paid in 10 days. How would the transaction be recorded today?Debit advertising expense $390, credit accounts payable $390

          

  27. Determine which account to debit and which account to credit. Purchase equipment by signing a note with the bank for $20,000.Debit-Notes Payable, Credit-Cash

          

  28. (#1) Determine the amount to post to the Cash T-account. Purchase equipment by signing a note with the bank for $20,000.No Entry

          

  29. When you Issue common stock in exchange for cash it is...?Debit salaries expense; credit cash

          

  30. What is the Financial Accounting Equation if you Receive cash of $1,000 from customers in (1) above.+$10,000 = $0 + +$10,000

          

  31. Prepare a trial balance by indicating whether each account balance is listed in the debit column or credit column. Retained Earnings = $5,000.Increase in Debit, Decrease in Credit

          

  32. Retained Earnings is..?Credit

          

  33. Measurement Process Step 4Debit

          

  34. Whats the impact of assets, liabilities and equity equation if you purchase equipment by signing a note with the bank for 20000$?Assets(-2000)=Liabilities(0)+Equity(-2000)

          

  35. Service Revenue is..?Debit

          

  36. Accounts receivable is..?Debit

          

  37. What is the Financial Accounting Equation if you Issue common stock for $10,000 cash.+$7,000 = +$7,000 + $0

          

  38. When a company pays utilities of $1,710 in cash, the transaction is recorded as:Debit Utilities Expense $1,710, credit Cash $1,710

          

  39. When you Pay rent in advance for the next three months it is...?Debit accounts receivable; credit service revenue

          

  40. Purchase land for $19,000. A note payable is signed for the full amount.Assets increase and stockholders' equity increases.

          

  41. If the liabilities of a company increased by $55,000 during a month and the stockholders' equity decreased by $21,000 during that same month, did assets increase or decrease and by how much?$34,000 increase

          

  42. AccountA summary of the effects of all transactions related to a particular item over a period of time

          

  43. Common Stock is..?Credit

          

  44. AuditorsIndependent intermediaries that help to ensure that management appropriately applies financial reporting rules in preparing the company's financial statements.

          

  45. Purchase office supplies for $2,000 on account.Assets increase and liabilities increase.

          

  46. JournalA summary of the effects of all transactions related to a particular item over a period of time

          

  47. International Accounting Standards BoardIndependent, private-sector group that is primarily responsible for setting financial reporting standards in the United States.

          

  48. General ledger postings

          

  49. What happens to assets, liability, and equity when you pay rent in advance with cash?no effect on all 3

          

  50. Determine the amount to post to the Cash T-account. Pay back bank note of $20,000 in #1 above.20,000 Credit

          

  51. General ledgerAll accounts used to record the company's transactions (shown in chart of accounts)

          

  52. Prepare a trial balance by indicating whether each account balance is listed in the debit column or credit column. Cash = $4,000.Increase in Credit, Decrease in Debit

          

  53. Determine the amount to post to the Cash T-account. Assuming the beginning balance in the Cash T-account is $0, what is the ending balance in the Cash T-account after the five transactions above?Debit-Notes Payable, Credit-Cash

          

  54. Chart of accounts

          

  55. Measurement Process Step 2Prepare a trial balance.

          

  56. Indicate how to increase and decrease each account listed below by selecting debit or credit. EquipmentIncrease in Debit, Decrease in Credit

          

  57. What happens to assets, liability, and equity when you pay a account payable?Assets increase, Equity increases, no effect on Liabilities

          

  58. Determine which account to debit and which account to credit. Paid back bank note of $20,000 from the first transaction above.Debit-cash, Credit-Service Revenue

          

  59. Dividends is..?Credit

          

  60. Whats the impact of assets, liabilities and equity equation if you purchase supplies for 700$ cash?Assets(0)=Liabilities(0)+Equity(0)

          

  61. Whats the impact of assets, liabilities and equity equation if you provide services to customers for 26,000$?Assets(0)=Liabilities(0)+Equity(0)

          

  62. Accounts Payable is..?Record of cash that will be received from a customer to whom a business has sold products on credit

          

  63. When you Pay for office supplies that were purchased on account it is...?debit accounts payable; credit cash.

          

  64. Determine the amount to post to the Cash T-account. Purchase supplies for $700 cash.700 Credit

          

  65. What is the Financial Accounting Equation if you Pay $500 to employee in (3) above.-$100 = $0 + -$100

          

  66. Determine which account to debit and which account to credit. Provide services to customers for $26,000 cash.Debit-Supplies, Credit-cash

          

  67. Which of the following is used to increase the balance of a revenue account? Debit or Credit?Accounts Payable, Service Revenue, Common Stock.

          

  68. Securities and Exchange CommissionGroup that has been given power by Congress to enforce the proper application of financial reporting rules for companies whose securities are publicly traded.

          

  69. Prepare a trial balance by indicating whether each account balance is listed in the debit column or credit column. Buildings = $15,000.Increase in Debit, Decrease in Credit

          

  70. (pic) Journal Format 1 transaction
    transaction (1) causes total assets to increase (+A) and total stockholders' equity to increase (+SE). For each transaction, total debits must equal total credits.

          

  71. When you Pay for the current month's utilities it is...?debit supplies; credit accounts payable.

          

  72. What is the Financial Accounting Equation if you Pay $400 for current month's rent.-$400 = $0 + -$400

          

  73. Pumpkin Inc. sold $500 in pumpkins to a customer on account on January 1. On January 11 Pumpkin collected the cash from that customer. What is the impact on Pumpkin's accounting equation from the collection of cash?
    a.No net effect to the accounting equation.
    b.Decrease assets and increase liabilities.
    c.Increase assets and increase liabilities.
    d.Decrease assets and decrease liabilities.
    Debit 15000

          

  74. PostingThe process of transferring the debit and credit information from the journal to individual accounts in the general ledger

          

  75. Indicate how to increase and decrease each account listed below by selecting debit or credit. Accounts ReceivableIncrease in Debit, Decrease in Credit

          

  76. Measurement Process Step 3Record transactions using debits and credits.

          

  77. When you Borrow cash from the bank and sign a note it is...?debit supplies; credit accounts payable.

          

  78. Internal transactionsTransactions the firm conducts with a separate economic entity

          

  79. When you Pay salaries for the current month it is...?Debit salaries expense; credit cash

          

  80. Childers Service Company provides services to customers totaling $2,100, for which it billed the customers. How would the transaction be recorded?Debit accounts receivable; credit service revenue

          

  81. Determine the amount to post to the Cash T-account. Pay utilities of $2,000 for the current month.700 Credit

          

  82. When you Collect cash from customers for services (on account) it is...?debit cash; credit accounts receivable.

          

  83. 5 steps of measurement processPrepare a trial balance.

          

  84. indicate whether a debit or credit is used to increase (+) or decrease (-) the balance of the account. DividendDebit

          

  85. Account payablea liability account showing how much is owed for goods and services purchased on credit

          

  86. What happens to assets, liability, and equity when you buy land by singing a note to the bank?Assets (cash) decrease, Liabilities (accounts payable)Decrease, no change in equity.

          

  87. Determine which account to debit and which account to credit. Pay utilities of $2,000 for the current month.Debit-Notes Payable, Credit-Cash

          

  88. indicate whether a debit or credit is used to increase (+) or decrease (-) the balance of the account. Retained EarningsAssets(-20000)=Liabilities(-20000)+Equity(0)

          

  89. What is the Financial Accounting Equation if you Pay $100 for advertising aired in the current period.+$7,000 = +$7,000 + $0

          

  90. Measurement Process Step 6Prepare a trial balance.

          

  91. (3) What is the Financial Accounting Equation if you Hire a new employee, who will be paid $500 at the end of each month.+$7,000 = +$7,000 + $0

          

  92. Determine the amount to post to the Cash T-account. Instead of a beginning balance of $0, what if the beginning balance in the Cash T-account was $3,000. Now, what is the ending balance in the Cash T-account after the five transactions above?700 Credit

          

  93. What is the Financial Accounting Equation if you Obtain a loan from the bank for $7,000.+$400 and -$400 = $0 + $0

          

  94. Account recievableDebit

          

  95. Hire three employees for $2,000 per month.No effect on the accounting equation.

          

  96. Determine which account to debit and which account to credit. Purchase supplies for $700 cash.Debit-Supplies, Credit-cash

          

  97. Whats the impact of assets, liabilities and equity equation if you paid back bank note of 20,000$ from the first transaction?Assets(-2000)=Liabilities(0)+Equity(-2000)

          

  98. When a company pays $2,700 dividends to its stockholders, the transaction should be recorded as:Debit Dividends; credit Cash.

          

  99. Which of the following is not an asset account?
    Supplies.
    Accounts Payable.
    Equipment.
    Accounts Receivable.
    Accounts Payable.

          

  100. (pic )Trial balance
    A list of all the accounts and their balances at a particular date, showing that total debits equal total credits

          

  101. Which of the following is used to increase the balance of a liability account? Debit or Credit?Accounts Payable.

          

  102. Prepare a trial balance by indicating whether each account balance is listed in the debit column or credit column. Service Revenue = $13,000.Credit 13000

          

  103. Indicate how to increase and decrease each account listed below by selecting debit or credit. Common StockCredit

          

  104. Measurement Process Step 5Post the transaction to the T-accounts in the general ledger.

          

  105. Cash is..?Debit

          

  106. Note payablea liability account showing how much is owed for goods and services purchased on credit

          

  107. What is the Financial Accounting Equation if you Purchase office supplies for $400 cash.+$400 and -$400 = $0 + $0

          

  108. When you Purchase office supplies on account it is...?debit cash; credit common stock

          

  109. What happens to assets, liability, and equity when you issue stock for cash?Assets (cash) decrease, Liabilities (accounts payable)Decrease, no change in equity.

          

  110. Expenses normally carry a _______ balance and are shown in the _________.Debit; Income statement

          

  111. What happens to assets, liability, and equity when you recieve cash in advance from customers?Assets(-2000)=Liabilities(0)+Equity(-2000)

          

  112. The balance of a stockholders' equity account increases with a ... and decreases with a .....Accounts Payable, Service Revenue, Common Stock.

          

  113. What is the Financial Accounting Equation if you Provide services to customers on account, $1,600.-$100 = $0 + -$100

          

  114. Prepare a trial balance by indicating whether each account balance is listed in the debit column or credit column. Salaries Expense = $11,000.Debit 11000

          

  115. Measurement Process, Step 1Use source documents to identify accounts affected by external transactions.

          

  116. Purchase storage container equipment for $8,000One asset increases and another asset decreases.