Wk 4 - Practice: Topic 11: How We Record the Effects of Transactions Quick Check
Liability accounts are increased: Below the balance line On the left side By credits By debits
By Credits
Northwest Company received and immediately paid a $4,000 utility bill from Green River Gas and Electric Company. The entry by Green River Gas and Electric Company to record receipt of the payment would include: A credit to Accounts Payable A debit to Cash A credit to Utilities Expense A credit to Accounts Payable and a debit to Cash
A debit to Cash
Usually, when accounts receivable are collected, an asset is debited and: Another asset is debited Another asset is credited A liability is credited A liability is debited
Another asset is credited
Which of the following groups of accounts have a normal debit balance? Liabilities and Expenses Revenues and Liabilities Assets and Expenses Owners' Equity and Assets
Assets and Expenses
An entry to the left side of an account is always called a(n): Decrease Credit Increase Debit
Debit
Owners' equity accounts are decreased with: Assets Liabilities Credit entries Debit entries
Debit entries
The entry to record the payment of a note with interest usually includes a: Credit to Note Payable Debit to Interest Expense Debit to Cash Credit to Note Receivable
Debit to Interest Expense
Which of the following is the correct order for preparing a journal entry? For each account, determine if it is increased or decreased; For each account, determine by how much it has changed; Identify which accounts are involved Identify which accounts are involved; For each account, determine if it is increased or decreased; For each account, determine by how much it has changed For each account, determine if it is increased or decreased; Identify which accounts are involved; For each account, determine by how much it has changed Identify which accounts are involved; For each account, determine by how much it has changed; For each account, determine if it is increased or decreased
Identify which accounts are involved; For each account, determine if it is increased or decreased; For each account, determine by how much it has changed
Revenue accounts are: Increased with debit entries Increased with credit entries Subtracted from capital stock Assets
Increased with credit entries
The supplies expense account: Normally has a credit balance Is increased with a debit entry Is decreased with a debit entry Is increased with a credit entry
Is increased with a debit entry
