ACC 120 - Chpt 2

A credit is used to record:

All of the above: A decrease in an expense account, A decrease in an asset account, An increase in an unearned revenue account, An increase in a revenue account.

Which of the following is a true statement regarding debits and credits?

Assets and expenses are both increased with a debit.

Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's ledger entry to record this transaction will include a

Debit to Telephone Expense for $300.

A credit entry:

Decreases asset and expense accounts, and increases liability, owner's capital, and revenue accounts.

A ledger is:

Is a collection of all accounts used in a company's information system.

Which of the following is not true about the chart of accounts

Numbers accounts in alphabetic order

Of the following accounts, the one that normally has a credit balance is:

Sales Salaries Payable.

A simple account form widely used in accounting to illustrate how debits and credits work is called a:

T-account

Double-entry accounting is an accounting system:

That records the effects of transactions and other events in at least two accounts with equal debits and credits.

Which of the following is not found in the journal?

The affect on net income of the transaction

An account balance is:

The difference between the total debits and total credits for an account including the beginning balance.

A debit is:

The left-hand side of a T-account.

Which of the following statements is incorrect?

The normal balance of an expense account is a credit.

Paying a creditor on account will result in

a credit to cash and a debit to accounts payable

Receiving cash from a customer on account will result in:

a debit to cash and a credit to accounts receivable

An entry to sell stock for cash will result in an entry to:

debit cash; credit capital stock

If a company received payment from a customer for services to be performed in future periods, the entry to be made would be:

debit cash; credit unearned fees

A trial balance

is done to make sure the ledger is in balance

The process of transferring journal entry information to the ledger is called

posting

If an entry debited supplies and credited accounts payable for the same amount, then which of the following occured?

the company purchased supplies on account