College Accounting: A Contemporary Approach - Ch 03 - Analyzing Business Transactions Using T Accounts - Practice

Net income appears on which two financial statements? a. Income statement b. Statement of owner's equity c. Balance sheet

Income statement, Statement of owner's equity

Financial statements should be prepared in a specific order. Organize the statements below in the order of preparation: a. Statement of owner's equity b. Income statement c. Balance sheet

Income statement, Statement of owner's equity, Balance sheet

A(n) ____ to the prepaid rent account is shown on the left-hand side of the T-account.

Increase

A(n) ______ to an expense account is shown on the left-hand side of the T-account.

Increase

A(n) ________ to the accounts payable account is shown on the right-hand side of the T-account.

Increase

When analyzing an owner's drawing account, _____ are shown on the left-hand side of the T-account and _____ are shown on the right-hand side of the T-account.

Increase; decrease

When analyzing the fees earned account, ______ are shown on the right-hand side of the T-account and _____ are shown on the left-hand side of the T-account.

Increases; decreases

A company received $600 for services previously billed. This transaction would be recorded with:

A credit to accounts receivable; A debit to cash

A written record of the assets, liabilities, and owner's equity of a business is called a(n) ____.

Account

Black Consulting Company purchased equipment for $5,000. This amount is to be paid in 60 days. This transaction would be recorded with a credit entry to the ______ account.

Accounts payable

A(n) _____ to the supplies account is shown on the right-hand side of the T-account. Decrease A company paid $500 by check for office supplies that it had previously purchased on credit. This transaction would debit the _____ account, and credit the ____ account.

Accounts payable; cash

Quality Plumbing Co. received $450 for plumbing services, previously billed. This transaction would be recorded with a credit entry on the right-hand side of which account:

Accounts receivable

Speedy Delivery Company completed a delivery and billed the customer for $980. This transaction would be recorded with a debit-entry on the left-hand side of which account.

Accounts receivable

Place the steps to calculate the balance of an account in the correct order. a. Record the balance on the side that has the larger total b. Add the figures on each side of the account c. Subtract the smaller total from the larger total d. Enter the total in small pencil figures called a footing

Add the figures on each side of the account, Enter the total in small pencil figures called a footing, Subtract the smaller total from the larger total, Record the balance on the side that has the larger total

Identify which of the following items appear on a balance sheet title: a. Balance Sheet b. Statement of Owner's Equity c. Company Name d. 12/31/XX e. For the Year Ended in 12/31/XX

Balance Sheet, Company Name, 12/31/XX

Identify which of the following items are on the statement of owner's equity: a. Revenue b. Total Liabilities c. Capital, Beginning Balance d. Withdrawals e. Net Income f. Total Assets

Capital, Beginning Balance, Withdrawals, Net Income

Gill's Consulting issued a check in the amount of $400 to pay the monthly utilities bill. This transaction would be recorded with a credit entry on the right-hand side of which account?

Cash

Helen Jone's Hair Salon collects $800 cash for services provided during the day. This transaction would be recorded with a debit entry on the left-hand side of which account?

Cash

A company collected $980 cash from previously billed customers. This transaction would debit the _____ account, and credit the ____ account.

Cash; accounts receivable

A company collected $200 cash from customers for services provided. This transaction would ____ the fees earned account and ____ the cash account.

Credit; debit

A company paid the telephone bill of $200. This transaction would ____ the cash account and ____ the utilities expense account.

Credit; debit

A company purchased equipment for$2,000 in cash. This transaction would ______ the cash account and _____ the equipment account.

Credit; debit

An entry on the left-hand side of a T-account is called a:

Debit

A company issued a check for $500 to an office supply vendor in partial payment of an open account balance. This transaction would be recorded with a:

Debit to accounts payable; Credit to cash

A company completed services and billed customers for $800. This transaction would _____ the accounts receivable account and _____ the fees income account.

Debit; credit

A(n) _____ to the accounts receivable account is shown on the right-hand side of the T-account.

Decrease

A(n) ______ to the fees earned account is shown on the left-hand side of the T-account.

Decrease

When analyzing accounts receivable _____ are shown on the right-hand side of the T-account, and ____ are shown on the left-hand side of the T-account.

Decrease; increase

When analyzing liability accountants ______ are shown on the left-hand side of the T-account, and ______ are shown on the right-hand side of the T-account.

Decreases; increases

An accounting system that involves recording the effects of each transaction as debits and credits is called (a)n ____ system.

Double-entry

A special type of owner's equity account set up to record the owner's withdrawal of cash from the business is called the _____ account.

Drawing

Place the steps to prepare a trial balance in the correct order a. Total the debit column; total the credit column b. Enter the ending balances of each account in the appropriate debit or credit column c. List the accounts names in the order they appear on the financial statements d. Compare the total debits with total credits e. Enter the trial balance heading

Enter the trial balance heading, List the accounts names in the order they appear on the financial statements, Enter the ending balances of each account in the appropriate debit or credit column, Total the debit column; total the credit column, Compare the total debits with total credits

Identify which items are on the income statement: a. Owner's capital b. Expenses c. Assets d. Net income e. Liabilities f. Revenues

Expenses, Net income, Revenues

True or False: A list of the accounts used by a business to record financial transactions is called a trial balance.

False

True or False: The normal balance of an account is a debit balance.

False

A small pencil figure written at the base of an amount column showing the sum of the entries in the column is called a:

Footing

The cash account is always increased on the ____-hand side of the T account.

Left

The equipment account is always increased on the ___-hand side of the T-account.

Left

Identify which of the following items would appear on the balance sheet a. Liabilities b. Expenses c. Assets d. Owner's Equity e. Drawings f. Revenue

Liabilities, Assets, Owner's Equity

The steps to analyze the effects of a business transaction include: a. Make the entry in T-account form b. Analyze the financial event c. Apply the high-low rules for each account affected

Make the entry in T-account form, Analyze the financial event

Sean Conroy, owner of Conroy and Associates, withdrew $5,000 cash. This transaction would be recorded with a debit entry on the left-hand side of which account:

Sean Conroy, Drawing

An account that is kept open from one accounting period to the next, such as cash, is called a ____ account.

Permanent

Expense items acquired, recorded, and paid for in advance of their use are called:

Prepaid expenses

Gonzo's Grooming Company issued a check in the amount of $3,000 to pay rent for the next three months. This transaction would be recorded with a debit entry to the ____ account.

Prepaid rent

The accounting error ______ would be demonstrated with 980.000 instead of 98.00, while a _______ would be demonstrated with 45.00 instead of 54.00.

Slide; transaction

The owner's capital account is always increased on the ____-hand side of the T account.

Right

Ronny and Assoc. issued a check for $2,400 to pay salaries. This transaction would be recorded with a debit entry on the left-hand side of which account?

Salaries expense

A company purchased office supplies for $500 in cash. This transaction would debit the ____ account and credit the ____ account.

Supplies; cash

An account whose balance is transferred to another account at the end of the accounting period, such as fees income or wages expenses, is called a ______ account.

Temporary

Identify which of the following correctly describes a T-account: a. Referred to as a T-account because of its relationship to transactions b. The name of the account is written on the horizontal (top) line c. Accountants use T-accounts to analyze transactions d. Consists of a vertical line and a horizontal line that resembles the letter T e. Increases to accounts are recorded on the left hand column

The name of the account is written on the horizontal (top) line, Accountants use T-accounts to analyze transactions, Consists of a vertical line and a horizontal line that resembles the letter T

Arrange the following sections of the statement of owner's equity in the correct order: a. Capital, December 31, 2016 b. Net Income c. Title d. Capital, January 1, 2016 e. Less Withdrawals f. Increase in Capital

Title, Capital, January 1, 2016, Net Income, Less Withdrawals, Increase in Capital, Capital, December 31, 2016

Arrange the following sections of the income statement in the correct order: a. Expenses b. Net Income c. Title d. Revenue

Title, Revenue, Expenses, Net Income

When the digits of a number are switched (for example 940 for 490), it is called a ____ error.

Transposition

A statement to test the accuracy of total debits and credits after transactions have been recorded is called the ___________.

Trial balance

Identify which of the following accounts are temporary accounts: a. Prepaid rent b. Accounts payable c. Utilities expense d. Equipment e. Fees income

Utilities expense, Fees income