| Accounting entries and meanings
Hello All,
I would like to request help in the following questions listed bellow. I think they are correct, but I'm not sure. If someone would please take a few minutes to look at them and let me know if I am on the right track, and on the ones that are not correct, how to determine the correct answer. Any assistance given is greatly appreciated. Thank you all in advance.
1. A debit is:
A) An increase in an account.
B) The right-hand side of a T-account.
C) A decrease in an account.
D) The left-hand side of a T-account. (Answer)
E) An increase to a liability account.
2. Of the following accounts, the one that normally has a credit balance is:
A) Cash.
B) Office Equipment.
C) Sales Salaries Payable. (Answer)
D) Owner, Withdrawals.
E) Sales Salaries Expense.
3. If assets are $99,000 and liabilities are $32,000, then equity equals:
A) $ 32,000.
B) $ 67,000. (Answer)
C) $ 99,000.
D) $131,000.
E) $198,000.
4. Internal users of accounting information include:
A) Shareholders.
B) Managers. (Answer)
C) Lenders.
D) Suppliers.
E) Customers.
5. If equity is $300,000 and liabilities are $192,000, then assets equal:
A) $108,000.
B) $192,000.
C) $300,000.
D) $492,000. (Answer)
E) $792,000.
6. An account used to record the owner's investments in the business is called a(n):
A) Withdrawals account.
B) Capital account. (Answer)
C) Revenue account.
D) Expense account.
E) Liability account.
7. Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's general journal entry to record this transaction will include a
A) Debit to Telephone Expense for $300. (Answer)
B) Credit to Accounts Payable for $300. (Answer)
C) Debit to Cash for $300.
D) Credit to Telephone Expense for $300.
E) Debit to Accounts Payable for $300.
8. Wisconsin Rentals purchased office supplies on credit. The general journal entry made by Wisconsin Rentals will include a:
A) Debit to Accounts Payable.
B) Debit to Accounts Receivable.
C) Credit to Cash.
D) Credit to Accounts Payable. (Answer)
E) Credit to Wisconsin Rentals, Capital.
9. A debit is:
A) An increase in an account.
B) The right-hand side of a T-account.
C) A decrease in an account.
D) The left-hand side of a T-account. (Answer)
E) An increase to a liability account.
PLEASE SKIP NUMBER TEN
10. Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business, RH Consulting. Which of the following general journal entries will RH Consulting make to record this transaction?
A)
B)
C)
D)
E)
Robert Haddon, Capital 200,000
Assets $200,000
11. If Tim Jones, the owner of Jones Hardware proprietorship, uses cash of the business to purchase a family automobile, the business should record this use of cash with an entry to:
A) Debit Salary Expense and credit Cash.
B) Debit Tim Jones, Salary and credit Cash.
C) Debit Cash and credit Tim Jones, Withdrawals.
D) Debit Tim Jones, Withdrawals and credit Cash.
E) Debit Automobiles and credit Cash.
I don’t know this answer
12. Creditors' claims on the assets of a company are called:
A) Net losses.
B) Expenses.
C) Revenues.
D) Equity.
E) Liabilities. (Answer)
13. The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:
A) Income statement equation.
B) Accounting equation. (Answer)
C) Business equation.
D) Return on equity ratio.
E) Net income.
14. A report that lists accounts and their balances, in which the total debit balances should equal the total credit balances, is called a(n):
A) Account balance.
B) Trial balance. (Answer)
C) Ledger.
D) Chart of accounts.
E) General Journal.
15. Internal users of accounting information include:
A) Shareholders.
B) Managers. (Answer)
C) Lenders.
D) Suppliers.
E) Customers.
16. The difference between a company's assets and its liabilities, or net assets is:
A) Net income. (Answer)
B) Expense.
C) Equity.
D) Revenue.
E) Net loss.
17. A balance sheet lists:
A) The types and amounts of the revenues and expenses of a business.
B) Only the information about what happened to equity during a time period.
C) The types and amounts of assets, liabilities, and equity of a business as of a specific date. (Answer)
D) The inflows and outflows of cash during the period.
E) The assets and liabilities of a company but not the owner's equity.
18. The record in which transactions are first recorded is the:
A) Account balance.
B) Ledger.
C) Journal. (Answer)
D) Trial balance.
E) Cash account.
19-30 Leonard Matson completed these transactions during December of the current year. Write the journal entry for each transaction.
(Skip question 19-30)
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