CH2
7. Which of the following describes the classification and normal balance of the Unearned Rent Revenue account?
Liability, credit
6. A debit is NOT the normal balance for which account listed below?
Revenue
8. Which accounts normally have credit balances?
Revenues, liabilities, and retained earnings
14. On July 7, 20XX, Shireman Enterprises received cash $1,400 for services rendered. The entry to record this transaction will include
a debit to Cash of $1,400.
4. Powers Corporation received a cash advance of $500 from a customer. As a result of this event,
assets increased by $500 (Debited).
10. When a company performs a service but has not yet received payment, it
debits Accounts Receivable and credits Service Revenue.
5. Debits
increase assets and decrease liabilities.
15. The primary purpose of the trial balance is to
prove the equality of the debit and credit amounts after posting.
3. The right side of a t-account is
the credit side.
11. In the first month of operations, the total of the debit entries to the Cash account amounted to $3,000 and the total of the credit entries to the Cash account amounted to $1,800. The Cash account has a
$1,200 debit balance.
12. At November 1, 20XX, Johnson Inc. had an Accounts Receivable balance of $200,000. During the month, the company made sales on account of $300,000. In addition, Johnson Inc. collected $400,000 from customers that owed them money. At November 30, 2018, the Accounts Receivable balance is
$100,000 debit
1. Which of the following statement about an account is true?
An account is an individual accounting record of increases and decreases in specific assets, liability, and stockholders equity items.
2. Which of the following are part of the recording process?
Analyzing transactions, Entering Transactions in a journal, Posting journal entries
13. Which of the following steps in the accounting process is done after analyzing business transactions?
Entering transactions in a journal
9. Which of the following accounts is increased with a debit?
Land
