Chapter 4 Practice Test (Accounting I)

The normal balance of an account is always on the

• side of the current account balance

• side used to record increases

• credit side of the account

• debit side of the account

At the beginning of the week, Cash in Bank has an account balance of $3,500.00. During the week, the following transactions occur: Office supplies in the amount of $236.12 are purchased; the owner takes a withdrawal of $450.00; a customer’s payment of $780.00 is received; and the company’s monthly electric bill in the amount of $178.43 is paid. What is the balance of the Cash in Bank account at the end of the week?

• Credit balance of $1,855.45

• Debit balance of $3,415.45

• Credit balance of $3,415.45

• Debit balance of $1,855.45

Tags

CCSS.7.NS.A.3

If the current assets of Random Electronics Inc. equal $789,541.00, and their current liabilities total $590,961.30, what is the current amount of owner’s equity?

• $198,579.70

• $1,380,501.30

• $199,579.70

• $189,579.70

Tags

CCSS.7.EE.B.3

XYZ company shows the following account balances: Cash in Bank = $12,565.43; Owner’s Capital = $40,875; Accounts Receivable = $22,578.44; Equipment = -$660.32. The following transactions occur: The owner takes a withdrawal in the amount of $500.00; a payment from customer Z in the amount of $3,000.00 is received; and equipment is purchased in the amount of $865.00. Which shows an incorrect account balance after all the transactions are recorded?

• Cash in Bank = $15,565.43

• Owner’s Capital = $40,375.00

• Accounts Receivable = $19,578.44

• Equipment = $204.68

Tags

CCSS.7.NS.A.1D

In double-entry accounting, a debit is an entry on _________ side of an account.

Explain how T accounts work and why they are useful for double-entry accounting.