Which of the following accounts have normal credit balances select all that apply?

Chapter 2

 Which of the following would be considered a source document in an accounting system? Checks Employee speeding ticket Sales receipt Purchase order Payroll records

 An account is a record of increases and decrease in a specific asset, liability, equity, revenue or expense.

 The general ledger can be used to determine which of the following (select all answers which apply):

common and unique accounts used by a business. increases and decreases in all accounts in a business. which accounts are being used by a company and their balances at any given time.

 True or false: Assets are claims (by creditors) against the company.

 Which of the following accounts would be considered an asset? (Check all that apply.)

Supplies Building Cash Accounts receivable

 Which of the following is the best definition of a source document in the accounting process?

A source document identifies and describes transactions and is the basis for entering an event into the accounting system.

 Which of the following items would be considered "cash" and reflected in a company's Cash account? (Check all that apply.)

Checks Coin Money orders

 The correct definition of an "account" includes which of the following?

A record of increases and decreases in a specific asset, liability, equity, revenue, or expense item

 Which of the following statements is (are) true about accounts receivables? (Check all that apply.)

Accounts receivable reflects the amount owed by customers. Accounts receivable are increased when credit sales are made.

 Which of the following describes a general ledger?

The general ledger is a record containing all accounts used by a company.

 Notes receivable is considered asset

 Which of the following statements is the best definition of an asset?

Assets are resources owned or controlled by a company and that have expected future benefits.

When supplies are purchased, they are added to the Supplies account.  Given the descriptions below, which is (are) true regarding notes receivable? (Check all that apply.)

Notes receivable is classified as an asset. It is the promise of another entity to pay a specific sum of money on a specified future date. Another name for a note receivable is a promissory note.

 Equipment is a(n) asset Blank 1Blank 1 asset , Correct Unavailable (asset/liability/expense) account. It is reported on the left Blank 2Blank 2 left , Correct Unavailable (left/right) side of the

accounting equation and is increasedBlank 3Blank 3 increased , Correct Unavailable(increased/decreased) when equipment is purchased.

 Which of the following statements is correct about prepaid accounts

Prepaid accounts are also called prepaid expenses and are considered assets.

 The Building account is a(n) assetBlank 1Blank 1 asset , Correct Unavailable (asset/liability/expense) account and is reported on the left Blank 2Blank 2 left , Correct Unavailable (left/right) side of the accounting equation.

 Which of the following are examples of prepaid (expense) accounts? (Check all that apply.)

Prepaid insurance Prepaid rent

 Which of the following statements is accurate about the Land account? (Check all that apply.)

The Land account is an asset. The Land account is increased on the left side of its T-account. The Land account is used to record the costs of land purchased by the business.

 Which of the following are accurate statements regarding how to report or treat prepaid accounts? (Check all that apply.)

The unexpired portion of prepaid accounts are treated as assets. Over time, the expired portion of prepaid accounts is transferred from the asset account and reported as an expense. The expired portion of prepaid accounts is reported on the income statement as an expense.

 Which of the following statements is the correct definition of a liability?

A liability is a claim by a creditor against the assets of a business.

 Supplies are assets Blank 1 Blank 1 assets , Correct Unavailable (assets/expenses/liabilities) until they are used. When they are used up, their costs are reported as expensesBlank 2 Blank 2 expenses , Correct Unavailable (assets/expenses/liabilities).

 Match the item on the left with the correct definition on the right

 Which of the following statements is (are) accurate regarding equipment purchased within a business? (Check all that apply.)

Equipment is an asset. Equipment purchases are reported on the balance sheet.

 Accrued liabilities are amounts owed that are not yet paid

 Which of the following statements is the correct definition of a creditor?

A creditor is an individual or organization that has a right to receive payments from a business.

 Match the items on the left with their definition on the right.

 Which of the following statements is accurate regarding Accounts payable?

Accounts payable refer to promises to pay later, which may arise from the purchase of supplies or services.

 Which of the following accounts impact equity? (Check all that apply.)

Dividends Common Stock Expenses Revenue

 Which of the following statements is (are) correct regarding the Notes payable account? (Check all that apply.)

Notes payable is reported on the balance sheet. Notes payable is a liability account. Notes payable is a formal promise to pay a certain sum of money on a specified future date.

 Enter one word for each blank. The expanded accounting equation is: ASSETS Blank 1 Blank 1 ASSETS , Correct

Unavailable = LIABILITIES Blank 2 Blank 2 LIABILITIES , Correct

Unavailable + common stock + REVENUESBlank 3 Blank 3 REVENUES ,

Correct Unavailable - EXPENSESBlank 4 Blank 4 EXPENSES , Correct Unavailable - dividends. Do not include the word "account(s)" in your answers

 When the product or service related to an unearned revenue is delivered, the earned portion of the unearned revenue is transferred to a _____ account.

revenue

 When the stockholders receive a dividend, how would this affect the equity of a business?

Assets are decreased and equity is decreased.

 All of the following are examples of accrued liabilities:

interest payable wages payable taxes payable

 Which of the following statements about the Dividends account is (are) correct? (Check all that apply.)

Dividends are increased on the left side of the T-account. Dividends is used to record distributions of assets to the owners of a business. Dividends decrease equity.

Unavailable (investments/dividends/expenses/revenues) by the owner and has a negative Blank 2Blank 2 negative , Correct Unavailable (positive/negative) impact on equity.

 Which of the following statements is the best definition of the Chart of Accounts?

It is a list of all ledger accounts which exist in a business and includes an identification number assigned to each account.

 Revenues cause equity to increase Blank 1Blank 1 increase , Correct Unavailable (decrease/increase) and they are increased on the right Blank 2Blank 2 right , Correct Unavailable (left/right) side of the T-account.

 Which statement best describes a T-account?

A T-account represents a ledger account and is a tool used to understand the effects of one or more transactions.

 From the following lists of accounts, choose the list(s) which contains only expense accounts.

Rent expense, wages expense, insurance expense

 Which of the following statements is (are) correct regarding the sides of a T-account? (Check all that apply.)

The left side is called the debit side. The right side is called the credit side. Liability accounts will be increased on the right side. Asset accounts will be increased on the left side.

 Since expenses are the costs of doing business and cause equity to decreaseBlank 1Blank 1 decrease , Correct Unavailable (increase/decrease), expenses are increased on the left Blank 2Blank 2 left , Correct Unavailable (right/left) side of their T-account.

 Which of the following statements is correct?

To debit an account means to enter transactions on the left side of a T- account.

 Match the definition on the left with the term/item on the right.

Which of the following statements is (are) correct? (Check all that apply.)

Crediting means to enter transactions on the right side of a T-account. Crediting a liability account will increase it. Crediting the Common Stock account means to increase it

 From the lists of accounts below, which one contains only revenue accounts?

Interest revenue, Professional fees earned, Sales

 Which of the following statements is correct in regards to debiting and crediting an account?

A debit or a credit can increase an account, depending on what kind of account it is.

 Which of the following statements is (are) correct regarding a T- account? (Check all that apply.)

A T-account will show the debit and credit effects of transactions. A T-account may be used as a tool to visualize the effects of a transaction. A T-account represents a ledger account.

 Transferring entries from the journal to the ledger is called (posting/preparing/journalizing)

 Select the statements that are true regarding debiting and crediting. (Check all that apply.)

For an account where a debit is an increase, the credit is a decrease. A credit will always decrease an asset account. A debit or a credit can increase or decrease an account, depending on the account. A debit can increase an expense account.

 Which of the following statements is (are) correct regarding a journal? (Check all that apply.)

In a journal, both the debit and credit side of the transaction can be seen. Transactions are generally entered in chronological order. A journal is used to record business transactions.

 The T- account for Cash had 3 transactions entered into it. It was increased by $400 and decreased by $100 and by $30, respectively. Its balance at the end of the period would be a (debit/credit) debitBlank

1 Blank 1 debit , Correct Unavailable balance of $ 270  Which of the selections below includes all of the required information to be entered in a journal? Date of transaction, explanation of transaction, debited and credited accounts, dollar amounts of debits and credits

 Which of the following accounts has a normal credit balance? (Check all that apply.)

Accounts payable Unearned consulting revenue Common stock

 Select the statements below that are correct in regards to entering transactions in a journal. (Check all that apply.)

Total dollar amount of debits must equal the total dollar amount of credits. Credited accounts should be indented. Leave one blank line between each completed journal entry.

 The steps in the accounting process include: (Check all that apply.)

Analyze transactions Identify transactions and source documents Record business transactions

 Which of the following statements best explains the posting reference in a journal and a ledger?

The posting reference creates a link between the journal and the ledger.

 Which of the following is correct regarding posting a transaction?

Posting means to transfer journal information to a ledger.

 Which of the following statements is (are) correct regarding the Balance column in a ledger (or Balance column account)? (Check all that apply.)

An abnormal balance is identified by writing it in red or setting it in brackets. A zero balance for an account is usually shown by writing zeros or a dash in the balance column. Immediately after posting a transaction, the balance of the account is written in the Balance column.

 Choose the statement below that correctly explains a general journal..

A journal is a complete record of each transaction in one place and includes the debit and credit of each transaction.

 Which of the following is a correct statement regarding the posting process?

Entries must be posted to the ledger before financial statements are prepared.

 Which of the following is required information when entering a transaction into a journal? (Check all that apply.)

Explanation of transaction Date of the transaction Credited accounts Debited accounts

T-accounts are a simple way to visualize the effect of a transaction; however, Balance column accounts are used in actual accounting systems.

 Which of the following statements explains what a trial balance is?

A trial balance confirms that the sum of debit account balances equals the sum of credit account balances.

 Which of the following statements is (are) correct regarding the posting process? (Check all that apply.)

The posting process does not require detailed explanations in the ledger. Entries must be posted to the ledger before financial statements are prepared. Entries are posted as soon as possible. The posting process creates a link between the ledger and the journal.

 An income statement reports:

the revenues less the expenses incurred by a business

 On Jan. 2, Callie Taylor invests $40,000 into the business in exchange for common stock. She journalized the transaction as follows but something is wrong with the journal entry. Use your knowledge of what a correct journal entry should look like to identify everything that is wrong. Select all answers which apply.

Date Accounts

P

R

Debit Credit

Jan 2 Common Stock

40,

0

Cash

4,

0

(Owner invested in business)

Common Stock should be listed second, below Cash. The Common Stock account should be indented as it is credited. The dollar amount is wrong in the Credit column. The Cash account should be listed first.  You are entering a transaction in the journal. Place the following steps in the order that they would be entered in the journal.

 Recall the required information in a financial statement heading. Rearrange the following line items as they would appear in a heading.

 True or false: At the end of the period, the assets will still equal the liabilities plus equity.

 Review each of the following statements to determine which is correct regarding the importance of assessing a company's risk of paying debt. (Check all that apply.)

A company that finances their assets by borrowing will need to make enough money to pay off the debt. A company's required debt payments may be greater than its ability to generate money to make those payments. If a company has a lot of debt, they may not be able to afford to take on new debt.

 A trial balance is a(n) (list/balance/chart) list Blank 1Blank 1 list , Correct Unavailable of accounts and their balances at a point in time and is used to confirm that the sum of debit account balances equals

Chapter 2 Videos Question

The balance sheet, the statement of retained earn¬ings, the income statement, and the statement of cash flows use data from the trial balance (and other financial statements) for their preparation.

1. Select the correct reporting time period for each financial statement.

2. Indicate the order the financial statements are prepared.

1. The ledger (or general ledger) is a record containing all accounts used by a company and their balances. It is referred to as the books. The chart of accounts is a list of all accounts and usually includes an identification number assigned to each account.

Which of the following statements are true about the chart of accounts?

Different companies use different charts of accounts based on individual company need.

The chart of accounts should be ordered in a logical sequence based on type of account.

4. Which of the following statements are true about the general ledger?

All companies will use the same general ledger accounts.

The ledger contains the balance of all of the accounts in a chart of

accounts.

What accounts have normal credit balances?

Which account has a credit normal balance quizlet?

Which of the following accounts has a normal credit balance Chapter 5?

What does it mean to have a normal credit balance?