Multiple Choice Questions

Cash was paid by Janer's Cleaning Service to creditors on account. Which of the following entries for Janer's Cleaning Service records this transaction?
  • Accounts Payable; Unearned Revenue; Collins, Capital
  • Accounts Receivable, debit; Fees Earned, credit
  • Debit Sally Anderson, Drawing; Credit Cash
  • Accounts Payable, debit; Cash, credit
A debit balance in which of the following accounts would likely indicate an error?
  • Notes Payable
  • revenues and liabilities
  • liabilities
  • Assets and expenses
Which of the following entries records the receipt of cash from clients on account?
  • Debit Cash; Credit Taylor Thomas, Capital
  • Cash, debit; Fees Earned, credit
  • Debit Accounts Payable; Credit Cash
  • Cash, debit; Accounts Receivable, credit
Gently Laser Clinic purchased laser equipment for $8,500 and paid $2,250 down, with the remainder to be paid later. The correct entry would be
  • Equipment8,500Accounts Payable6,250Cash2,250
  • Accounts Receivable, debit; Fees Earned, credit
  • Debit Sally Anderson, Drawing; Credit Cash
  • Debit Cash; Credit Taylor Thomas, Capital
When a transposition error is made on the trial balance, the difference between the debit and credit totals on the trial balance will be
  • divisible by 9
  • Notes Payable
  • Revenue accounts only
  • Assets and expenses
Which of the following entries records the payment of insurance for the current month?
  • Debit Sally Anderson, Drawing; Credit Cash
  • Each business transaction will have two debits.
  • c.Insurance Expense, debit; Cash, credit
  • Debit Cash; Credit Taylor Thomas, Capital
Which of the following groups of accounts have a normal debit balance?
  • Assets and expenses
  • c.Insurance Expense, debit; Cash, credit
  • assets, drawing, expenses
  • Revenue accounts only
A debit signifies a decrease in
  • Salary Expense
  • decrease in assets
  • revenues
  • Notes Payable
Which of the following entries records the payment of an account payable?
  • Debit Prepaid Insurance; Credit Cash
  • Office Supplies, debit; Accounts Payable, credit
  • Debit Accounts Payable; Credit Cash
  • c.Insurance Expense, debit; Cash, credit
The Posting Reference columns are used to trace transactions from the ledger to the journal. What will be entered in the Posting Reference column of (1) the journal and (2) the ledger?
  • Accounts Receivable, debit; Fees Earned, credit
  • Debit Sally Anderson, Drawing; Credit Cash
  • Revenue accounts only
  • (1) the account number and (2) the journal page number
The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.Accounts Payable $1,500 Fees Earned $3,600Accounts Receivable 1,800 Insurance Expense 1,300Prepaid Insurance 2,000 Land 3,000Cash 3,200 Wages Expense 1,400Drawing 1,200 Capital 8,800Prepare a trial balance. The total of the debits is
  • assets
  • $13,900
  • posting
  • divisible by 9
Apr. 14 Equipment 15,000 Cash 5,000Notes Payable 10,000???????????? Which is the best explanation for this journal entry?
  • increase Cash and increase Capital
  • Cash40,000Joshua Scott, Capital40,000Invested cash in business.
  • Purchased equipment; paid cash of $5,000, with the remainder to be paid in the future.
  • Increase Equipment with a debit and the normal balance is a debit
Which of the following accounts are debited to record increases?
  • assets and expenses
  • assets, drawing, expenses
  • revenue, credit
  • Revenues and capital
Which of the following groups of accounts is increased with a debit?
  • Revenues and capital
  • Assets and expenses
  • Cash, debit; Fees Earned, credit
  • assets, drawing, expenses
A credit balance in which of the following accounts would likely indicate an error?
  • trial balance
  • Salary Expense
  • Notes Payable
  • Assets and expenses
Which of the following situations increases owner's equity?
  • Services are provided on account.
  • c.Insurance Expense, debit; Cash, credit
  • Debit Prepaid Insurance; Credit Cash
  • Debit Accounts Payable; Credit Cash
Which of the following types of accounts have a normal credit balance?
  • Revenues and capital
  • Debit Accounts Payable; Credit Cash
  • Cash, debit; Fees Earned, credit
  • liabilities, capital, revenues
In which of the following types of accounts are increases recorded by credits?
  • revenue, credit
  • revenues and liabilities
  • assets, drawing, expenses
  • Revenue accounts only
Which of the following groups of accounts increases with a credit?
  • Debit Accounts Payable; Credit Cash
  • liabilities, capital, revenues
  • Cash, debit; Fees Earned, credit
  • Services are provided on account.
Which of the following entries records the investment of cash by Taylor Thomas, owner of a proprietorship?
  • Debit Sally Anderson, Drawing; Credit Cash
  • Cash, debit; Accounts Receivable, credit
  • Debit Accounts Payable; Credit Cash
  • Debit Cash; Credit Taylor Thomas, Capital
Expenses follow the same debit and credit rules as
  • Revenues and capital
  • assets, drawing, expenses
  • Unearned Revenue
  • the drawing account
Which of the following owner's equity accounts follows the same debit and credit rules as liabilities?
  • Revenues and capital
  • Debit Accounts Payable; Credit Cash
  • revenue, credit
  • Revenue accounts only
The classification and normal balance of the drawing account are
  • Services are provided on account.
  • Debit Accounts Payable; Credit Cash
  • assets, drawing, expenses
  • owner's equity, debit balance
The process of transferring the debits and credits from the journal entries to the accounts is called
  • divisible by 9
  • liabilities
  • posting
  • $13,900
The balance of an account is determined by
  • The normal balance is on the increase side of the account.
  • The normal balance for revenues and expenses is a credit.
  • adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum
  • debit Rent Expense and credit Cash
Which of the following entries records the payment of a bill for your insurance premium?
  • Cash, debit; Accounts Receivable, credit
  • Debit Prepaid Insurance; Credit Cash
  • Debit Accounts Payable; Credit Cash
  • Debit Cash; Credit Taylor Thomas, Capital
Which of the following is not a correct rule of debits and credits?
  • The normal balance is on the increase side of the account.
  • Each business transaction will have two debits.
  • The normal balance for revenues and expenses is a credit.
  • Increase Equipment with a debit and the normal balance is a debit
In accordance with the debit and credit rules, which of the following is true?
  • revenues and liabilities
  • Debits increase assets.
  • assets and expenses
  • liability, credit balance
Which of the following entries records the withdrawal of cash by Sally Anderson, owner of a proprietorship, for personal use?
  • Debit Cash; Credit Taylor Thomas, Capital
  • Debit Sally Anderson, Drawing; Credit Cash
  • Cash, debit; Unearned Rent, credit
  • Office Supplies, debit; Accounts Payable, credit
Which of the following applications of the rules of debit and credit is true?
  • The normal balance for revenues and expenses is a credit.
  • Each business transaction will have two debits.
  • Increase Equipment with a debit and the normal balance is a debit
  • The normal balance is on the increase side of the account.
Which of the following entries records the receipt of cash for two months' rent? The cash was received in advance of providing the service.
  • Debit Sally Anderson, Drawing; Credit Cash
  • Cash, debit; Fees Earned, credit
  • Cash, debit; Unearned Rent, credit
  • Cash, debit; Accounts Receivable, credit
Which of the following entries records the acquisition of office supplies on account?
  • Increase Equipment with a debit and the normal balance is a debit
  • c.Insurance Expense, debit; Cash, credit
  • Office Supplies, debit; Accounts Payable, credit
  • Each business transaction will have two debits.
Which of the following accounts would be increased with a credit?
  • Accounts Payable; Unearned Revenue; Collins, Capital
  • The normal balance for revenues and expenses is a credit.
  • The normal balance is on the increase side of the account.
  • Office Supplies, debit; Accounts Payable, credit
The payment for the monthly rent will require which of the following entries?
  • Debit Prepaid Insurance; Credit Cash
  • debit Rent Expense and credit Cash
  • Debits increase assets.
  • Debit Cash; Credit Taylor Thomas, Capital
The classification and normal balance of the accounts payable account are
  • liability, credit balance
  • Debits increase assets.
  • liabilities, capital, revenues
  • owner's equity, debit balance
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Multiple Choice Questions
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