ch 3 terrible acct 1301

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

Best Consulting Co. issued a check for $1,000 to an office supply vendor in partial payment of an open account balance. This transaction would be recorded with a debit entry to the _________ account

accounts payable

identify which of the following accounts are permanent accounts:

accounts payable cash prepaid rent

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

Which of the following are correct steps to calculate the balance of an account? add the figures on each side of the account enter the total in small pencil figures called a footing record the balance on the side that has the smaller total add the two footing balances together

add the figures on each side of the account enter the total in small pencil figures called a footing

The normal balance side for asset, liability, and owner's equity accounts is: right, right, right respectively. left, right, right respectively. right, right, left respectively. left, left, right respectively.

left, right, right respectively.

The owner's capital account appears on which two financial statements?

statement of owner's equity balance sheet

Net income appears on which two financial statements?

statement of owner's equity income statement

Fancy Painting Company purchased office supplies for $500 in cash. This transaction would be recorded with a debit to the _______ account.

supplies

A company purchased office supplies for $500 in cash. This transaction would debit the _______________account, and credit the_______account

supplies or office supplies cash

An error in which the decimal point is misplaced, for example when 317 is written as 3.17 is an example of a

slide.

Place the steps to calculate the balance of an account in the correct order.

1. add the figures on each side of the account 2. Enter the total small pencil figures 3.subtract the smaller total from the larger total 4.record the balance on the side that has the larger total

Place the steps to prepare a trial balance in the correct order:

1.enter the trial balance heading 2.list the accounts name in the order they appear 3.enter the end balances of each account 4.total the debit column;total the credit column 5.compare the total debits with total credits

The company owner took $5,000 cash for personal use. What is the entry for this transaction?

Debit Caleb Parker, Drawing and Credit Cash

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

False

the steps to analyze the effects of a business transaction include (select all that apply):

analyze the financial event make the entry in T-account form

increases

are shown on the right-hand side of the T account

Identify the correct statements: liabilities decrease on the right (credit) side assets increase on the left (debit) side liabilities increase on the right (credit) side owner's equity decrease on the left (debit) side

assets increase on the left (debit) side liabilities increase on the right (credit) side owner's equity decrease on the left (debit) side

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 list of the accounts used by a business to record its financial transactions is called the

chart of accounts

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

credit

A company collected $200 cash from customers for services provided. This transaction would (debit/credit)________he fees earned account, and debit/credit___________the cash account.

credit 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:

credit to cash debit to accounts payable

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

debit

A company completed services and billed customers for $800. This transaction would (debit/credit)__________he accounts receivable account, and (debit/credit)_________the fees income account.

debit credit

A(n) (increase/decrease)__________to the fees earned account is shown on the left-hand side of the T account.

decrease

An (increase/decrease) ________to the accounts receivable account is shown on the right-hand side of the T account.

decrease

An (increase/decrease)____________to the accounts receivable account is shown on the right-hand side of the T account

decrease

Identify the correct steps to prepare a trial balance:

enter the ending balances of each account in the appropriate debit or credit column enter the trial balance heading total the debit column; total the credit column

Identify the correct statement about the accounting equation:

owner's equity increases on the right (credit) side

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

permanent

Credit entries are always made on the (left/right)________-hand side of a T account.

right

The fees earned account is always increased on the (left/right) ______________ -hand side of the T account.

right

an error where numbers are switched, for example, entering 120 instead of 210, is called a:

transposition

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

trial balance

A statement that lists all accounts and related balances, that is prepared after transactions have been recorded, and which tests the accuracy of total debits and total credits is called the

trial balance

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

trial balance