Ch. 2 Quiz

Which of the following statements is correct?

The left side of a T-account if the debit side.

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is an:

account.

A credit is used to record:

an increase in an unearned revenue account.

The accounting process begins with:

analysis of business transactions and other reports.

On April 15th, Landscape by Design Inc. receives cash of $2,000 in advance from a customer who will be out of the country for landscaping services to be performed during the four-month period beginning on June 1. How would Landscape by Design record this transaction?

debit cash for $2,000 and credit unearned revenue for $2,000.

Jones Hardware Inc. paid a cash dividend of $6,000. What is the necessary entry to record this transaction?

debit dividends, credit cash

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

debit to telephone expense for $300.

Which financial statements are prepared for a period of time?

income statement, statement of retained earnings, and statement of cash flows.

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

t-account.

Which of the following accounts is a balance sheet account?

wages payable