Question 5 The beginning balance in the Computers account was $2,500. The compan

Question

Question 5


The beginning balance in the Computers account was $2,500. The company purchased an additional $500 worth of computers. The balance in the account is:
Answer
a.
debit of $3,000.
b.
debit of $2,000.
c.
credit of $3,000.
d.
credit of $2,000.

4 points
Question 6


Net income or net loss for a period is calculated by the following formula:
Answer
a.
total revenues - total withdrawals.
b.
total revenues - total expenses - total withdrawals.
c.
total revenues - total expenses + capital.
d.
total revenues - total expenses.

4 points
Question 7


Accounts Payable had a normal starting balance of $750. There were debit postings of $600 and credit postings of $350 during the month. The ending balance is:
Answer
a.
$1,000 debit.
b.
$500 debit.
c.
$500 credit.
d.
$1,000 credit.

4 points
Question 8


A ledger:
Answer
a.
is a group of accounts and their balances.
b.
is the same as a chart of accounts.
c.
can replace the financial statements.
d.
None of these answers are correct.

4 points
Question 9


The entry to record Tom's payment of a home telephone bill is:
Answer
a.
debit Telephone Expense; credit Cash.
b.
debit Telephone Expense; credit Accounts Payable.
c.
debit Tom's Withdrawals; credit Accounts Payable.
d.
debit Tom's Withdrawals; credit Cash.

4 points
Question 10


An account that would be increased by a credit is:
Answer
a.
Cash.
b.
Accounts Receivable.
c.
Utilities Expense.
d.
Accounts Payable.

4 points
Question 11


A liability would be credited and an expense debited if:
Answer
a.
the business bought supplies for cash.
b.
the business incurred an expense and did not pay the expense immediately.
c.
the business bought supplies on account.
d.
the business paid a creditor.

4 points
Question 12


What would be the effect on accounts if the business purchased office supplies for cash?
Answer
a.
An asset would be debited and an asset credited.
b.
An asset would be debited and revenue credited.
c.
An asset would be debited and an expense credited.
d.
Capital would be debited and revenue credited.

4 points
Question 13


Which of the following is not a financial statement?
Answer
a.
Balance sheet
b.
Income statement
c.
Statement of owner's equity
d.
Trial balance

4 points
Question 14


Which of the following errors would cause the trial balance to be out of balance?
Answer
a.
An entry is posted twice.
b.
A debit is entered as $100 and the credit is entered at $1,000.
c.
An entry is not posted at all.
d.
None of these answers are correct.

4 points
Question 15


Office Supplies had a normal starting balance of $75. There were debit postings of $90 and credit postings of $70 during the month. The ending balance is:
Answer
a.
$95 debit.
b.
$55 debit.
c.
$55 credit.
d.
$95 credit.

4 points
Question 16


A credit to an asset account was posted to a revenue account. This error would cause:
Answer
a.
assets to be overstated.
b.
Revenue to be overstated.
c.
expenses to be overstated.
d.
Both A and C are correct.

4 points
Question 17


A debit to an asset account was posted to a liability account. This error would cause:
Answer
a.
liabilities to be overstated.
b.
capital to be overstated.
c.
assets to be understated.
d.
None of the above are correct.

4 points
Question 18


What would be the effect on accounts if the business provided services to a customer on account?
Answer
a.
An asset would be debited and Capital credited.
b.
An asset would be debited and an expense credited.
c.
An asset would be debited and revenue credited.
d.
Capital would be debited and revenue credited.

4 points
Question 19


What is X-cel Company's net income or net loss if it had Revenue of $1,800, Salary Expense of $500, Utility Expense of $250, and Withdrawals of $1,000 during October?
Answer
a.
$1,050 net loss
b.
$1,050 net income
c.
$50 net income
d.
$50 net loss

4 points
Question 20


The owner of Wolverines R Us paid his personal MasterCard bill using a company check. The correct entry to record the transaction is:
Answer
a.
credit Cash; debit Supplies Expense.
b.
credit Cash; debit Withdrawals.
c.
credit Cash; debit Capital.
d.
credit Cash; debit Accounts Receivable.

4 points
Question 21


Which type of account would not be reported on the balance sheet?
Answer
a.
Revenue
b.
Accounts Receivable
c.
Cash
d.
Accounts Payable

4 points
Question 22


A debit to an expense account was posted to a revenue account. This error would cause:
Answer
a.
assets to be overstated.
b.
Revenue to be understated.
c.
liabilities to be overstated.
d.
None of the above are correct.

4 points
Question 23


Which of the following types of accounts has a normal debit balance?
Answer
a.
Expenses
b.
Assets
c.
Withdrawals
d.
All of these answers are correct.

4 points
Question 24


A credit to an asset account was posted to the Capital account. This error would cause:
Answer
a.
assets to be overstated.
b.
Capital to be understated.
c.
liabilities to be overstated.
d.
Both A and C are correct.

4 points
Question 25


Which type of account would not be reported on the income statement?
Answer
a.
Expenses
b.
Revenue
c.
Withdrawals
d.
None of these answers are correct.

Explanation / Answer

credit of $3,000.

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