24-25 Accounting 1 Unit 3 Test 1

What is an example of an account that has a normal credit balance?

• Cash

• Accounts Payable/Jones Supply

• Prepaid Insurance

• Supplies

Accounts Payable/Dale's Office Supplies, Accounts Payable/McCormick Equipment Company, and Accounts Payable/John's Office Repair Service are all classified as:

• assets.

• liabilities.

• revenue.

• expenses.

In the transaction RECEIVED CASH FROM SALES, the source document is a/an: (choose 2)

• bank statement or calculator tape.

• check stub or memorandum.

• invoice.

• receipt.

Which of the following is not a part of the accounting equation? A. assets. B. liabilities. C. owner's equity. D. revenue.

• assets

• liabilities

• owner's equity

• revenue

What is an example of an account that has a normal debit balance?

• Accounts Receivable/Oakdale School

• Accounts Payable/Jones Supply

• Mary Johnson, Capital

• Sales

What is an example of an account that has a normal credit balance?

• Cash

• Office Equipment

The transaction RECEIVED CHECK FROM PARKER, INC., IN PAYMENT ON ITS ACCOUNT would result in the journal entry:

• debit Accounts Receivable/ Parker, Inc.; credit Cash.

• debit Cash; credit Accounts Receivable/ Parker, Inc.

• debit Cash; credit Supplies.

• debit Supplies; credit

The correct entry for the transaction PAID CASH FOR ADVERTISING is:

• debit Miscellaneous Expense and credit Advertising Expense.

• debit Advertising Expense and credit Cash.

• debit Cash and credit Advertising Expense.

• debit Cash and credit Miscellaneous Expense.

The transaction BOUGHT SUPPLIES ON ACCOUNT FROM DAVIS SUPPLY STORE would result in the journal entry:

• debit Accounts Payable/Davis Supply Store and credit Supplies.

• debit Supplies and credit Accounts Payable/Davis Supply Store.

• debit Supplies and credit Supplies Expense.

• debit Supplies Expense and credit Supplies.

The correct journal entry for the transaction PAID CASH TO MARK JOHNSON, OWNER FOR PERSONAL USE, $900 is:

• debit Cash and credit Mark Johnson, Capital.

• debit Cash and credit Mark Johnson, Drawing.

• debit Mark Johnson, Capital, and credit Cash.

• debit Mark Johnson, Drawing, and credit Cash.