WorksheetsChapter 2 Accounting Principles ebook
Total questions: 15
Worksheet time: 8mins
Which of the following statements about an account
is true?
The right side of an account is the debit or
increase side.
An account is an individual accounting record of
increases and decreases in specifi c asset, liability,
and owner’s equity items.
There are separate accounts for specifi c assets
and liabilities but only one account for owner’s
equity items
The left side of an account is the credit or decrease
side.
Debits
increase both assets and liabilities.
decrease both assets and liabilities.
increase assets and decrease liabilities.
decrease assets and increase liabilities.
A revenue account:
is increased by debits.
is decreased by credits
has a normal balance of a debit.
is increased by credits
Accounts that normally have debit balances are
assets, expenses, and revenues
assets, expenses, and owner’s capital
assets, liabilities, and owner’s drawings.
assets, owner’s drawings, and expenses
The expanded accounting equation is:
Assets + Liabilities = Owner’s Capital + Owner’s
Drawings + Revenues + Expenses.
Assets = Liabilities + Owner’s Capital + Owner’s
Drawings + Revenues - Expenses
Assets = Liabilities - owner's capital - Owner's Drawings - Revenues - Expenses
Assets = Liabilities + Owner’s Capital - Owner’s
Drawings + Revenues - Expenses.
Which of the following is not part of the recording
process?
Analyzing transactions.
Preparing a trial balance.
Entering transactions in a journal
Posting transactions
Which of the following statements about a journal is
false?
It is not a book of original entry
It provides a chronological record of transactions
It helps to locate errors because the debit and credit
amounts for each entry can be readily compared
It discloses in one place the complete effect of a
transaction.
The purchase of supplies on account should result in
a debit to Supplies Expense and a credit to Cash.
a debit to Supplies Expense and a credit to Accounts
Payable.
a debit to Supplies and a credit to Accounts Payable
The order of the accounts in the ledger is
assets, revenues, expenses, liabilities, owner’s cap
ital, owner’s drawings
assets, liabilities, owner’s capital, owner’s draw
ings, revenues, expenses.
owner’s capital, assets, revenues, expenses, liabili
ties, owner’s drawings.
revenues, assets, expenses, liabilities, owner’s
capital, owner’s drawings.
A ledger:
contains only asset and liability accounts
should show accounts in alphabetical order
is a collection of the entire group of accounts
maintained by a company
is a book of original entry.
Posting
normally occurs before journalizing
transfers ledger transaction data to the journal.
is an optional step in the recording process
transfers journal entries to ledger accounts.
Before posting a payment of $5,000, the Accounts Pay
able of Senator Company had a normal balance of
$16,000. The balance after posting this transaction was
$21,000.
$5,000
$11,000
A trial balance
is a list of accounts with their balances at a given
time.
proves the journalized transactions are correct
will not balance if a correct journal entry is posted
twice.
proves that all transactions have been recorded
A trial balance will not balance if
a correct journal entry is posted twice.
the purchase of supplies on account is debited to
Supplies and credited to Cash.
a $100 cash drawing by the owner is debited to
Owner’s Drawings for $1,000 and credited to Cash
for $100.
a $450 payment on account is debited to Accounts
Payable for $45 and credited to Cash for $45.
The trial balance of Jeong Company had accounts with the following normal balances: Cash $5,000, Service Revenue $85,000, Salaries and Wages Payable $4,000, Salaries and Wages Expense $40,000, Rent Expense $10,000, Owner’s Capital $42,000, Owner’s Drawings $15,000, and Equipment $61,000. In preparing a trial balance, the total in the debit column is:
$131,000
$216,000
$91,000
$116,000
