HW 4
Which of the following correctly identifies normal balances of accounts? a.Assets Debit Liabilities Credit Common Stock Credit Revenues Debit Expenses Credit b.Assets Debit Liabilities Credit Common Stock Credit Revenues Credit Expenses Credit c.Assets Credit Liabilities Debit Common Stock Debit Revenues Credit Expenses Debit
B
Which of the following describes the classification and normal balance of the Retained Earnings account? a. Asset, debit b. Stockholders' equity, credit c. Revenues, credit d. Expense, debit
B
Debits a. increase both assets and liabilities. b. decrease both assets and liabilities. c. increase assets and decrease liabilities.
C
The right side of an account a. is the correct side. b. reflects all transactions for the accounting period. c. shows all the balances of the accounts in the system. d. is the credit side.
d
The double-entry system requires that each transaction must be recorded a. in at least two different accounts. b. in two sets of books. c. in a journal and in a ledger. d. first as a revenue and then as an expense.
A
Which of the following describes the classification and normal balance of the Unearned Rent Revenue account? a. Asset, debit b. Liability, credit c. Revenues, credit d. Expense, debit
B
Which statement about an account is true? a. In its simplest form, an account consists of two parts. b. An account is an individual accounting record of increases and decreases in specific asset, liability, and stockholders' equity items. c. There are separate account for specific assets and liabilities but only one account for stockholders' equity items. d. The left side of an account is the credit or decrease side.
B
An account consists of a. a title, a debit balance, and a credit balance. b. a title, a left side, and a debit balance. c. a title, a debit side, and a credit side. d. a title, a right side, and a debit balance.
C
A T-account is a. a way of depicting the basic form of an account. b. a special account used instead of a journal. c. a special account used instead of a trial balance. d. used for accounts that have both a debit and credit balance.
D
A credit is not the normal balance for which account listed below? a. Common Stock account b. Revenue account c. Liability account d. Dividends account
D
A debit to an asset account indicates a(n) a. error. b. credit was made to a liability account. c. decrease in the asset. d. increase in the asset.
D
A revenue account a. is increased by debits. b. is decreased by credits. c. has a normal balance of a debit. d. is increased by credits
D
In its simplest form, an account consists of all of the following except a. right (credit) side. b. account title. c. left side. d. explanation column.
D
The classification and normal balance of the Dividends account is a. revenue with a credit balance. b. an expense with a debit balance. c. a liability with a credit balance. d. stockholders' equity with a debit balance.
D
An account is a part of the financial information system and is described by each one of the following except a. an account has a debit and credit side. b. an account is a source document. c. an account consists of three parts. d. an account has a title.
b
The normal balance of any account is the a. left side. b. right side. c. side which increases that account. d. side which decreases that account.
c