Accounting test

The accounts payable T accounts shows the following debit and credit amounts $1200 debit $3500 debit $8240 credit $100 credit

$3640 credit

The receipt of cash on account from a customer should be recorded as

A debit to cash and a credit to accounts receivable

A purchase of supplies on account should be recorded as

A debit to suppliers and credit to accounts payable

An example of an asset account is:

Accounts receivable

A debit may result in:

An increase in an expense account A decrease in a liability account A decrease in a revenue account An increase in an assets account

A credit may result in:

An increase in the capital account A decrease in an asset account An increase in a liability account An increase in a revenue account

Which of the following describes the classification and normal balance of H. Gale, capital?

Asset, debit Expense , debit Owners equity, debit Revenue, credit None are correct out of these

Accounts payable is reported on which financial statement

Balance sheet

The order the financial statements are prepared as follows

Balance sheet , income statement , state of owners equity

Which of the following is correct , assuming the following transaction Nixon company sold services on account

Cash is debited

Which of the following is correct assuming the following transaction R.Dirk invested $20,000 cash in the business

Cash is debited

A ________ is a transaction that requires more than one debit or more than one credit to be recorded

Compound entry

Ready company received a bill for advertising. The accountant would record a

Credit to accounts payable

A business buys office equipment for cash. what effect will this transaction have on the accounts ?

Debit an asset account and credit an asset account

Utilities expense would be shown on the

Debit side of the trial balance

Jackson company received on account from customers $2,300. The accountant would record a

Debit to accounts receivable, $2,300

Rent expense is reported on which financial statement ?

Income statement

The plus side of a T account represents the:

Normal balance of that Accout

Which of the following is correct , assuming the following transaction Kennedy company revived and paid the rent for the month

Rent expense is debited

Owner withdrawals are reported on which financial statement

Statement of owners equity

Which of the following entries recorded the withdrawal of cash for personal us by D. Bill , the owner of a business ?

debit D.Bull , drawing and credit cash