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