Which of the following describes the classification and normal balance of the fees earned account?

A. an asset with a credit balance

B. a liability with a credit balance

C. an expense with a debit balance

D. a revenue with a credit balance

Which of the following types of accounts have a normal credit balance?

A. capital stock and dividends

B. revenues and liabilities

C. assets and liabilities 

D. liabilities and expenses

A list of the accounts is called

A. T account

B. ledger

C. debit

D. chart of accounts

The classification and normal balance of the supplies expense account is a(n)

A. asset with a debit balance

B. expense with a debit balance

C. asset with a credit balance

D. liability with a credit balance

Accounts are records of increases and decreases in individual financial statement items.

True

False

Journal entries can have more than two accounts as long as the debits equal the credits.

True

False

The post reference notation used in the journal is the page number.
 

True

False

A chart of accounts is a listing of accounts that make up the journal.

True

False

Which of the following entries records the receipt of cash for two months' rent? The cash was received in advanceof providing the service.

A. Prepaid Rent, debit; Rent Revenue, credit.

B. Cash, debit; Rent Expense credit.

C. Cash, debit; Unearned Rent, credit.

D. Cash, debit; Prepaid Rent, credit.

The trial balance is out of balance and the accountant suspects that a transposition or slide error has occurred. What will the accountant do to find the error?

A. Determine the amount of the error and divide by two, then look for that amount on the trial balance.

B. Determine the amount of the error and look for that amount on the trial balance.

C. Determine the amount of the error and divide by nine. If the result is evenly divided, then this type of error is likely.

D. Determine the amount of the error and refer to the journal entries for that amount.

C. Determine the amount of the error and divide by nine. If the result is evenly divided, then this type of error is likely.

Randomly listed below are the steps for preparing a trial balance:

(1) Verify that the total of the Debit column equals the total of the Credit column.

(2) List the accounts from the ledger and enter their debit or credit balance in the Debit or Credit column

of the trial balance.

(3) List the name of the company, the title of the trial balance, and the date the trial balance is prepared.

(4) Total the Debit and Credit columns of the trial balance.

What is the proper order of these steps?

A. (3), (2), (4), (1)

B. (2), (3), (4), (1)

C. (3), (2), (1), (4)

D. (4), (3), (2), (1)

Which of the following entries records the payment of rent for the current month?

A. Rent Expense, debit; Cash, credit

B. Cash, debit; Rent Expense, credit

C. Rent Expense, debit; Accounts Receivable, credit

D. Accounts Payable, debit; Rent Expense, credit

An account is said to have a debit balance if

A. there are more entries on the debit side than on the credit side

B. there are more entries on the credit side than on the debit side

C. the amount of the debits exceeds the amount of the credits

D. the first entry of the accounting period was posted on the debit side

Which of the following statements is not true about liabilities?

A. Liabilities are debts owed to outsiders.

B. Receiving cash before a service is performed creates a liability.

C. Account titles of liabilities often include the term “payable.”

D. Liabilities do not include wages owed to employees of the company.

Retained earnings will be reduced by all of the following except

A. revenues

B. expenses

C. dividends

D. all of these

Which one of the statements below is not a purpose for the journal?

A. to show increases and decreases in accounts

B. to show a complete transaction in one place

C. to help posting transactions to ledger 

D. to show a chronological order by date

Which of the following accounts increase with a credit?

A. capital stock, revenues, expenses

B. assets, capital stock, revenues

C. liabilities, capital stock, revenues

D. retained earnings, capital stock, assets

Which of the following group of accounts are increased with a debit?

A. assets, revenues, expenses

B. assets, liabilities, revenues

C. assets, dividends, expenses

D. assets, liabilities, stockholders’ equity

Revenue should be recognized when

A. the customer charges an order

B. the service is performed

C. the customer places an order

D. cash is received

The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality and balancing, and therefore should be equal.

True

False

The cash account will always be debited

True

False

The erroneous arrangement of digits, such as writing $45 as $54, is called a slide.

True

False

For a month's transactions for a typical medium-sized business, the accounts payable account is likely to have only credit entries.

True

False

The unearned revenues account is an example of a liability.

True

False

Prepaid expense is an example of an expense.

True

False