acc
Mandy withdraws $600 from her business. This transaction increases cash but decreases owner's equity. True? False?
False
A credit increases liabilities and owner's equity. True? False?
True
An example of an expense is
advertising
A debit represents an increase in? an asset. a liability. owner's equity. revenues.
an asset
Footings in T accounts appear after each entry. always appear on the right side. are unnecessary when there is only one entry. appear only in accounts carried over from the previous accounting period.
are unnecessary when there is only one entry.
Payment of a telephone bill represents an increase in a(n)
asset
The difference between the total debits and credits to an account is called a
balance
Payment of office rent represents a decrease in
cash
A cash payment on a loan affects which of the following accounts? Cash and Accounts Receivable Cash and Notes Payable Cash and an expense account Cash and a revenue account
cash and notes payable
The ____________________ balance is on the side that increases an account.
credit
Asset and expense accounts normally have? credit balances. large balances. debit balances. negative balances.
credit balances
The ____________________ is shown on the third line of the trial balance heading.
date
An amount entered on the left side of an account is called a(n) ____________________.
debit
The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called? single-entry accounting. compound-entry accounting. multiple-entry accounting. double-entry accounting.
double-entry accounting
A debit to either the drawing account or a(n) ____________________ account will cause a decrease in the owner's equity of a business.
expense
The normal balance for an expense account would be on the ____________________ side.
expense
Accounts that affect owner's equity are? assets, capital, and revenue. capital, liabilities, and expenses. expenses, capital, and revenue. drawing, assets, and liabilities.
expenses, capital, and revenue
Connie made, on account, a purchase of printer paper to last for about three months; this transaction increased Supplies and decreased Accounts Payable. True? False?
false
If services for the month total $3,300 in cash and $700 on account, the cash account increases $700. True? False?
false
Kate made a $475 payment on her company van. She should credit Accounts Payable and debit the automobile account. True? False?
false
Liability accounts normally have debit balances. True? False?
false
Prepaid Insurance is an asset account. True? False?
false
Revenues decrease owner's equity. True? False?
false
The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called complex-entry accounting. True? False?
false
An increase in an asset account may be offset by a(n) decrease in a liability account. increase in an expense account. increase in owner's equity. decrease in owner's equity.
increase in owner's equity
The purchase of an asset on account and making a partial payment results in all of the following EXCEPT? an increase in an asset account. a decrease in the Cash account. a balanced accounting equation. an increase in owner's equity.
increase in owner's equity
Revenues? decrease liabilities. decrease cash. increase expenses. increase owner's equity.
increase owner's equity
A purchase of an asset on account increases cash. decreases owner's equity. increases assets. decreases expenses.
increases assets
The capital account? decreases with increased revenue. increases with increased expenses. has a normal balance of a debit. increases when the owner invests money in the business.
increases when the owner invests money in the business
A credit? increases assets. is on the right side. decreases liabilities. decreases owner's equity
is on the right side
To increase a revenue account will require a(n) ____________________ to the account.
liability
The drawing account should be used to show
the amount the owner has taken out of the business.
A trial balance is taken periodically to check the equality of the debits and credits. True? False?
true
An account is a form or record used to keep track of the increases or decreases in the individual assets, liabilities, owner's equity, revenues, and expenses of a business entity. True? False?
true
An increase or decrease in any asset, liability, owner's equity, revenue, or expense is always accompanied by an offsetting change within the basic accounting elements. True? False?
true
At least two accounts are affected by every transaction. True? False?
true
John received $350 for delivery services; this transaction increased Cash and revenue. True? False?
true
Prepaid insurance and supplies are assets because they will provide benefits for more than one month. True? False?
true
The difference between the footings of an account is called the balance. True? False?
true
The sum of the debits must equal the sum of the credits on the trial balance. True? False?
true
To debit an account is to enter an amount on the left side of the account. True? False?
true
When services are performed for which payment will be received later, accounts receivable increases. True? False?
true