Question 1

Match the terms with the definitions.
-The side that increases an account.

Accepted Answer

A)  balance
B)  credit
C)  credit balance
D)  debit
E)  debit balanceF) double-entry accountingG) footingsH) normal balanceI) T accountJ) trial balanceK) A) and B)
L) A) and D)

Question 2

Liability, owner's capital, and revenue accounts normally have

Accepted Answer

A)   debit balances.
B)   large balances.
C)   negative balances.
D)   credit balances.E) B) and C)
F) A) and D)

Question 3

Withdrawals of cash and other assets by the owner for personal reasons decrease owner's equity.

Accepted Answer

A) True 
 B)False

Question 4

Match the terms with the definitions.
-To enter an amount of the left side of an account.

Accepted Answer

A)  balance
B)  credit
C)  credit balance
D)  debit
E)  debit balanceF) double-entry accountingG) footingsH) normal balanceI) T accountJ) trial balanceK) A) and B)
L) C) and H)

Question 5

The sum of the debits must equal the sum of the credits on the trial balance.

Accepted Answer

A) True 
 B)False

Question 6

Increases in owner's equity are entered as credits.

Accepted Answer

A) True 
 B)False

Question 7

The trial balance is used in preparing financial statements.

Accepted Answer

A) True 
 B)False

Question 8

Elysa paid $135 for utilities for her office; this transaction increased Cash and the expense account.

Accepted Answer

A) True 
 B)False

Question 9

Match the terms with the definitions.
-The difference between the footings of an account.

Accepted Answer

A)  balance
B)  credit
C)  credit balance
D)  debit
E)  debit balanceF) double-entry accountingG) footingsH) normal balanceI) T accountJ) trial balanceK) A) and B)
L) B) and H)

Question 10

Footings in T accounts

Accepted Answer

A)   appear after each entry.
B)   always appear on the right side.
C)   are unnecessary when there is only one entry.
D)   appear only in accounts carried over from the previous accounting period.E) All of the above
F) A) and B)

Question 11

The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called complex-entry accounting.

Accepted Answer

A) True 
 B)False

Question 12

John received $350 for delivery services; this transaction increased Cash and revenue.

Accepted Answer

A) True 
 B)False

Question 13

Craig deposits $6,000 in an account to start a new business. He should debit Cash and credit his capital account.

Accepted Answer

A) True 
 B)False

Question 14

Match the terms with the definitions.
-The normal balance of asset, expense, and drawing accounts.

Accepted Answer

A)  balance
B)  credit
C)  credit balance
D)  debit
E)  debit balanceF) double-entry accountingG) footingsH) normal balanceI) T accountJ) trial balanceK) F) and J)
L) A) and D)

Question 15

Examples of revenue accounts include all of the following EXCEPT

Accepted Answer

A)   Wages.
B)   Sales.
C)   Delivery Fees.
D)   Professional Fees.E) B) and D)
F) None of the above

Question 16

The standard T account includes all of the following EXCEPT

Accepted Answer

A)   a credit side.
B)   a debit side.
C)   a title.
D)   the current date.E) B) and C)
F) A) and D)

Question 17

Prepaid Insurance is an asset account.

Accepted Answer

A) True 
 B)False

Question 18

When debits equal credits for a transaction, the accounting equation is in balance.

Accepted Answer

A) True 
 B)False

Question 19

Match the terms with the definitions.
-To enter an amount on the right side of an account.

Accepted Answer

A)  balance
B)  credit
C)  credit balance
D)  debit
E)  debit balanceF) double-entry accountingG) footingsH) normal balanceI) T accountJ) trial balanceK) All of the above
L) B) and D)

Question 20

The balance of a T account is on the side with the larger footing.

Accepted Answer

A) True 
 B)False

Exam 3: The Double-Entry Framework

Examples of revenue accounts include all of the following EXCEPT

Correct AnswerverifiedShow Answer

When debits equal credits for a transaction, the accounting equation is in balance.

Correct AnswerverifiedShow Answer

The trial balance is used in preparing financial statements.

Correct AnswerverifiedShow Answer

Footings in T accounts

Correct AnswerverifiedShow Answer

Prepaid Insurance is an asset account.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -The side that increases an account.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -To enter an amount of the left side of an account.

Correct AnswerverifiedShow Answer

Increases in owner's equity are entered as credits.

Correct AnswerverifiedShow Answer

The balance of a T account is on the side with the larger footing.

Correct AnswerverifiedShow Answer

Liability, owner's capital, and revenue accounts normally have

Correct AnswerverifiedShow Answer

The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called complex-entry accounting.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -The difference between the footings of an account.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -The normal balance of asset, expense, and drawing accounts.

Correct AnswerverifiedShow Answer

John received $350 for delivery services; this transaction increased Cash and revenue.

Correct AnswerverifiedShow Answer

Elysa paid $135 for utilities for her office; this transaction increased Cash and the expense account.

Correct AnswerverifiedShow Answer

Craig deposits $6,000 in an account to start a new business. He should debit Cash and credit his capital account.

Correct AnswerverifiedShow Answer

Withdrawals of cash and other assets by the owner for personal reasons decrease owner's equity.

Correct AnswerverifiedShow Answer

The standard T account includes all of the following EXCEPT

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -To enter an amount on the right side of an account.

Correct AnswerverifiedShow Answer

The sum of the debits must equal the sum of the credits on the trial balance.

Correct AnswerverifiedShow Answer

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