When recording transactions in two or more accounts and the totals of the debits and credits are equal, it is called __________.
D. double-entry bookkeeping
An account is said to have a debit balance if __________.
A. the footing of the debits exceeds the footing of the credits
B. there are more entries on the debit side than on the credit side
C. its normal balance is debit without regard to the amounts or number of entries on the debit side
D. the last entry of the accounting period was posted on the debit side
Jim Walton performed services on credit for $2,450. A debit for this transaction should be recorded to __________.
B. accounts receivable
C. accounts payable
The owner invested personal equipment in the business. To record this transaction __________.
A. debit Equipment and credit Accounts Payable
B. debit Accounts Payable and credit Equipment
C. debit Equipment and credit Capital
D. credit Equipment and debit Capital
A liability would be credited and an expense debited if __________.
A. the business paid a creditor
B. the business incurred an expense and did not pay the expense immediately
C. the business bought supplies on account
D. the business bought supplies for cash
When an owner records a credit for $650 for revenue earned but not yet received, the amount of the debit should be __________.
A category that is not in the chart of accounts is __________.
C. cash flows
What would be the effect on accounts if the owner withdrew cash?
A. An asset would be debited and an expense credited.
B. Withdrawals would be debited and an asset credited.
C. An asset would be debited and a revenue credited.
D. An asset would be debited and Capital credited.
The Accounts Receivable account has total debit postings of $1,900 and credit postings of $1100. The balance of the account is __________.
A. $800 debit
B. $800 credit
C. $2,600 credit
D. $2,600 debit
An asset would be debited and a liability credited if __________.
A. the business bought supplies for cash
B. the business incurred an expense and paid it
C. the business incurred an expense and did not pay for the expense immediately
D. the business bought equipment on account
Which of the statements of the rules of debit and credit is true?
A. Decrease accounts receivable with a credit and the normal balance is a credit.
B. Increase accounts payable with a credit and the normal balance is a credit.
C. Increase capital with a debit and the normal balance is a debit.
D. Decrease cash with a debit and the normal balance is a debit.
A debit balance is a normal balance for which type of account?
A. accounts payable
C. accounts receivable
D. owner’s capital
The ledger is __________.
A. a group of accounts that records data from business transactions
B. a tool used to make sure that all accounts have normal balances
C. a chronological record of the day's transactions
D. a tool used to ensure that debits equal credits
Accounts Payable had a normal starting balance of $800. There were debit postings of $600 and credit postings of $300 during the month. The ending balance is __________.
A. $500 credit
B. $1,000 debit
C. $500 debit
D. $1,000 credit
A debit increases the balance in all of the following accounts, except __________.
D. accounts payable
Office Supplies had a normal starting balance of $75. There were debit postings of $80 and credit postings of $60 during the month. The ending balance is __________.
A. $55 debit
B. $55 credit
C. $95 debit
D. $95 credit
The right side of any account is the __________.
A. debit side
B. credit side
C. ending balance
The beginning balance in Cash was $3,500. Additional cash of $2,000 was received. Checks were written totaling $2,500. The cash balance is __________.
Which of the following types of accounts has a normal credit balance?
The owner of BobCats R Us paid his personal MasterCard bill using a company check. The correct entry to record the transaction is __________.
A. credit Cash; debit Capital
B. credit Cash; debit Supplies Expense
C. credit Cash; debit Withdrawals
D. credit Cash; debit Accounts Receivable