© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Debits and Credits: Analyzing and Recording Business Transactions Chapter 2

1. All of a business’ account forms are placed in a: A.Journal B.Workbook C.Notebook D.Ledger © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1

1. All of a business’ account forms are placed in a: A.Journal B.Workbook C.Notebook D.Ledger © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1

2. Which of the following is true about debits and credits? A.Debits are on the right side of a T- Account and Credits are on the left. B.Debits are on the left side of a T- Account and Credits are on the right. C.Debits and credits are interchangeable depending on the account affected. D.Debits are always on the left, and credits are sometimes on the left, but usually on the right. © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1

2. Which of the following is true about debits and credits: A.Debits are on the right side of a T- Account and Credits are on the left. B.Debits are on the left side of a T- Account and Credits are on the right. C.Debits and credits are interchangeable depending on the account affected. D.Debits are always on the left, and credits are sometimes on the left, but usually on the right. © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1

3. All of the following have normal debit balances except: A.Assets B.Expenses C.Capital D.Drawing © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1

3. All of the following have normal debit balances except: A.Assets B.Expenses C.Capital D.Drawing © 2009 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1

4. If the owner of a company made an investment of cash, which of the following would occur? A.Cash and Capital would both be debited. B.Cash would be credited and Accounts Payable would be debited. C.Cash would be debited and Capital would be credited. D.Cash would be credited and Capital would be debited. © 2009 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

4. If the owner of a company made an investment of cash, which of the following would occur? A.Cash and Capital would both be debited. B.Cash would be credited and Accounts Payable would be debited. C.Cash would be debited and Capital would be credited. D.Cash would be credited and Capital would be debited. © 2009 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

5. All of the following accounts normally have credit balances except: A.Cash B.Capital C.Revenue D. Accounts Payable © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

5. All of the following accounts normally have credit balances except: A.Cash B.Capital C.Revenue D. Accounts Payable © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

6. If a sale was made on account, which of the following would occur? A.Cash would be debited and Sales Revenue would be credited. B.Sales Revenue would be debited and Accounts Payable would be credited. C.Accounts Payable would be debited and Sales Revenue would be credited. D.Accounts Receivable would be debited and Sales Revenue would be credited. © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

6. If a sale was made on account, which of the following would occur? A.Cash would be debited and Sales Revenue would be credited. B.Sales Revenue would be debited and Accounts Payable would be credited. C.Accounts Payable would be debited and Sales Revenue would be credited. D.Accounts Receivable would be debited and Sales Revenue would be credited. © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

7. If an expense is paid for in cash, which of the following would occur? © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater A.Cash would be debited and Expenses would be credited. B. Cash would be credited and Expenses would be debited. C. Accounts Payable would be credited and Expenses would be debited. D.Withdrawals would be debited and Cash would be credited. LO-2

7. If an expense is paid for in cash, which of the following would occur? © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater A.Cash would be debited and Expenses would be credited. B. Cash would be credited and Expenses would be debited. C. Accounts Payable would be credited and Expenses would be debited. D.Withdrawals would be debited and Cash would be credited. LO-2

8. Which of the following accounts appears in the chart of accounts after Liability accounts? A.Asset accounts B.Owner’s Equity accounts C.Revenue accounts D.Expense accounts © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

8. Which of the following accounts appears in the chart of accounts after Liability accounts? A.Asset accounts B.Owner’s Equity accounts C.Revenue accounts D.Expense accounts © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

9. Which of the following account classifications would begin with the number 5? A.Asset B.Liability C.Revenue D.Expense © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

9. Which of the following account classifications would begin with the number 5? A.Asset B.Liability C.Revenue D.Expense © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

10. _________ are used to obtain the ending balance of each side of a T-account with more than one entry. A.Charters B.Estimates C.Footings D.Classifications © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

10. _________ are used to obtain the ending balance of each side of a T-account with more than one entry. A.Charters B.Estimates C.Footings D.Classifications © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

11. All of the following are true about the Trial Balance except: A.Assets are the first accounts listed. B.Total debits and credits must equal. C.Expenses are the last accounts listed. D.The drawing account does not appear on the Trial Balance. © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

11. All of the following are true about the Trial Balance except: A.Assets are the first accounts listed. B.Total debits and credits must equal. C.Expenses are the last accounts listed. D.The drawing account does not appear on the Trial Balance. © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

12. After a Trial Balance is completed and debits and credits are equal: A.The Balance Sheet is completed B.The Income Statement is completed C.The Statement of Owner’s Equity is completed D.Any of the above can be completed first. © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

12. After a Trial Balance is completed and debits and credits are equal: A.The Balance Sheet is completed B.The Income Statement is completed C.The Statement of Owner’s Equity is completed D.Any of the above can be completed first. © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

13. If the debit side of the cash account totaled $14,500 and the total credit side totaled $9,000, which of the following would occur? A. The Cash balance would be $23,500- Debit. B. The Cash balance would be $5,500- Debit. C. The Cash balance would be -$5,500- Credit. D. The Cash balance would be -$23,500- Debit. © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

13. If the debit side of the cash account totaled $14,500 and the total credit side totaled $9,000, which of the following would occur? A. The Cash balance would be $23,500- Debit. B. The Cash balance would be $5,500- Debit. C. The Cash balance would be -$5,500- Credit. D. The Cash balance would be -$23,500- Debit. © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3

14. Which of the following is true about T- accounts? A.When an expense is paid or due, it is credited. B.When the owner withdraws money, the drawing account is credited. C. Liabilities will always increase on the Credit side. D. Revenue is only recorded when cash is actually received. © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

14. Which of the following is true about T- accounts? A.When an expense is paid or due, it is credited. B.When the owner withdraws money, the drawing account is credited. C. Liabilities will always increase on the Credit side. D. Revenue is only recorded when cash is actually received. © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

15. All of the following are true about T- Accounts except: A.Asset accounts have a normal debit balance B.Accounts Payable would decrease on the credit side C. Revenue accounts normally have a credit balance D.The Capital account would increase on the debit side © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2

15. All of the following are true about T- Accounts except: A.Asset accounts have a normal debit balance B.Accounts Payable would decrease on the credit side C. Revenue accounts normally have a credit balance D.The Capital account would increase on the debit side © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2