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- Download: http://solutionzip.com/downloads/20-mcq-which-statement-about-the-rules-of-debit-and-credit-is-true/
- Question 1 of 20 5.0 Points
- Which statement about the rules of debit and credit is true?
- A. If accounts receivable is decreased with a credit, the normal balance is a credit.
- B. If accounts payable is increased with a credit, the normal balance is a credit.
- C. If capital is increased with a debit, the normal balance is a debit.
- D. If cash is decreased with a debit, the normal balance is a debit.
- Question 2 of 20 5.0 Points
- The ledger is a
- A. group of accounts that records data from business transactions.
- B. tool used to make sure that all accounts have normal balances.
- C. chronological record of the day’s transactions.
- D. tool used to ensure that debits equal credits.
- Question 3 of 20 5.0 Points
- When recording transactions in two or more accounts and the totals of the debits and credits are equal, it’s called
- A. debiting.
- B. crediting.
- C. posting.
- D. double-entry bookkeeping.
- Question 4 of 20 5.0 Points
- The Accounts Receivable account has total debit postings of $1,900 and credit postings of $1,100. The balance of the account is a/an
- A. $800 debit.
- B. $800 credit.
- C. $2,600 credit.
- D. $2,600 debit.
- Question 5 of 20 5.0 Points
- The beginning balance in the Computers account was $2,000. The company purchased an additional $1,000 worth of computers. The balance in the account is a
- A. debit of $2,000.
- B. credit of $3,000.
- C. debit of $3,000.
- D. credit of $2,000.
- Question 6 of 20 5.0 Points
- Office Supplies had a normal starting balance of $75. There were debit postings of $80 and credit postings of $60 during the month. The ending balance is a
- A. $55 debit.
- B. $55 credit.
- C. $95 debit.
- D. $95 credit.
- Question 7 of 20 5.0 Points
- The beginning balance in Cash was $3,500. Additional cash of $2,000 was received. Checks were written totaling $2,500. The cash balance is
- A. $2,000.
- B. $6,000.
- C. $4,500.
- D. $3,000.
- Question 8 of 20 5.0 Points
- Which entry records the investment of cash by John, owner of a sole proprietorship?
- A. Debit John, Capital; credit Cash
- B. Debit Cash; credit John, Withdrawals
- C. Debit John, Withdrawals; credit Cash
- D. Debit Cash; credit John, Capital
- Question 9 of 20 5.0 Points
- The owner invested personal equipment in the business. To record this transaction,
- A. debit Equipment and credit Accounts Payable.
- B. debit Accounts Payable and credit Equipment.
- C. debit Equipment and credit Capital.
- D. credit Equipment and debit Capital.
- Question 10 of 20 5.0 Points
- The accounts payable account is a/an _______, and it has a normal _______ balance.
- A. revenue; debit
- B. expense; credit
- C. liability; debit
- D. liability; credit
- Question 11 of 20 5.0 Points
- Accounts Payable had a normal starting balance of $800. There were debit postings of $600 and credit postings of $300 during the month. The ending balance is a
- A. $500 credit.
- B. $1,000 debit.
- C. $500 debit.
- D. $1,000 credit.
- Question 12 of 20 5.0 Points
- A category that is not in the chart of accounts is
- A. assets.
- B. liabilities.
- C. cash flows.
- D. revenue.
- Question 13 of 20 5.0 Points
- A debit balance is a normal balance for which type of account?
- A. Accounts payable
- B. Revenue
- C. Accounts receivable
- D. Owner’s capital
- Question 14 of 20 5.0 Points
- A liability would be credited and an expense would be debited if the business
- A. paid a creditor.
- B. incurred an expense and didn’t pay the expense immediately.
- C. bought supplies on account.
- D. bought supplies for cash.
- Question 15 of 20 5.0 Points
- The business incurred an expense and paid it immediately. To record this transaction,
- A. an expense is debited, and a liability is credited.
- B. an expense is debited, and an asset is credited.
- C. an expense is debited, and Capital is credited.
- D. None of the above
- Question 16 of 20 5.0 Points
- Which type of account has a normal credit balance?
- A. Withdrawals
- B. Assets
- C. Expenses
- D. Revenues
- Question 17 of 20 5.0 Points
- The left side of any account is the
- A. debit side.
- B. credit side.
- C. ending balance.
- D. footings.
- Question 18 of 20 5.0 Points
- An account that would be increased by a credit is
- A. cash.
- B. accounts receivable.
- C. utilities expense.
- D. accounts payable.
- Question 19 of 20 5.0 Points
- The owner of BobCats R Us paid his personal MasterCard bill using a company check. What is the correct entry to record the transaction?
- A. Credit Cash; debit Capital
- B. Credit Cash; debit Supplies Expense
- C. Credit Cash; debit Withdrawals
- D. Credit Cash; debit Accounts Receivable
- Question 20 of 20 5.0 Points
- An account is said to have a debit balance if
- A. the footing of the debits exceeds the footing of the credits.
- B. there are more entries on the debit side than on the credit side.
- C. its normal balance is debit without regard to the amounts or number of entries on the debit side.
- D. the last entry of the accounting period was posted on the debit side.
- Download: http://solutionzip.com/downloads/20-mcq-which-statement-about-the-rules-of-debit-and-credit-is-true/
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