Chapter 2 Pre Assignment

On November 21, Civic Company received $550 from customers in payment of their accounts. The journal entry to record this transaction would include

a debit to Cash.

Which of the following accounts is NOT an asset account?

Accounts Payable

All of the following accounts have normal credit balances except

Cash.

On May 21, Civic Company paid dividends of $1,000 to the shareholders. The journal entry to record this transaction would include a debit to

Cash. Common Stock. Dividends. ****None of these choices are correct. (Stockholders' Equity)

All of the following accounts have normal debit balances except

Common Stock.

Which of the following accounts is a liability account?

Notes Payable Accounts Payable Wages Payable ****All of these choices are correct.

Which step would be done last when preparing a trial balance?

Verify that the total of the Debit column equals the total of the Credit column.

On December 15, Civic Company paid $1,900 to Sylvan Supply Co. on account. The journal entry to record this transaction would include a

credit to Cash.

Assets and liabilities decrease by

credits and debits, respectively.

Revenues and expenses increase by

credits and debits, respectively.

On November 26, Civic Company purchased $1,200 of supplies on account. The journal entry to record this entry would

debit Supplies for $1,200 and credit Accounts Payable for $1,200.

Assets and liabilities increase by

debits and credits, respectively.

The normal balances for assets and expenses are

debits and debits, respectively.

Increases in stockholders' equity as a result of selling services or products to customers are known as

revenues.