1.

Which of the following would cause the Trial Balance to be out of

balance?
Placing the Capital account balance in the Credit column
Placing the Accounts Receivable balance in the Credit column
Placing the Rent Expense account balance in the Debit column
Placing the Equipment account balance in the Debit column
2. A business pays a creditor on account. The entry to record this transaction
is:
Debit Accounts Payable; Credit Cash
Debit Cash; Credit Accounts Payable
Debit Accounts Receivable; Credit to Cash
Debit Accounts Receivable; Credit Accounts Payable
3. Credits are used to record
decreases in liabilities and increases in assets and owner's equity.
increases in liabilities and owner's equity.
decreases in assets and owner's equity and increases in liabilities.
decreases in assets, liabilities, and owner's equity.
4. The normal balance of an account is the
increase side of the account.
the right side of the account.
the left side of the account.
decrease side of the account.
5. Which of the following represents the proper sequence for preparing the
financial statements?
balance sheet, statement of owner's equity, income statement
income statement, statement of owner's equity, balance sheet
statement of owner's equity, income statement, balance sheet
income statement, balance sheet, statement of owner's equity
6. When revenue is earned from charge-account sales, the accountant
debits Cash and credits a revenue account.
debits a revenue account and credits Accounts Receivable.
debits a revenue account and credits the capital account.

 debits Accounts Receivable and credits a revenue account.

7. If the trial balance totals are not equal, the error may have been caused by
a transposition if the difference is divisible by
9.
7.
5.
2.
8. Select the entry below that records paying employees for work performed
during the pay period?
debit Salary Expense and credit Cash
debit Cash and credit Salary Expense
debit Salary Expense and credit Accounts Receivable
debit Cash, and credit Accounts Receivable
9. When charge customers pay cash to apply against their accounts, the
amount is recorded
on the left side of the Cash account and the right side of the Fees
Income account.
on the left side of the Cash account and the left side of the Accounts
Receivable account.
on the left side of the Accounts Payable account and the right side of
the Cash account.
on the left side of the Cash account and the right side of the Accounts
Receivable account.
10. Which of the following does NOT describe a transposition?
It causes the trial balance to be out of balance.
It is an error.
It involves misplaced digits in a number.
It causes the difference between the debit total and the credit total to
be divisible by 2.
11. Which of the following accounts is NOT a nominal account?
Moriah Paige, Drawing
Rent Revenue
Office Supplies

 Salaries Expense
12. A business purchases equipment costing $4,000. They pay $1,500 right
away and charge the remaining amount. To record this transaction, the
business would:
Debit Equipment $4,000; Credit Accounts Payable $4,000
Debit Equipment $1,500; Credit Cash $1,500
Debit Equipment $4,000; Credit Cash $1,500 and Credit Accounts
Payable $2,500
Debit Equipment $2,500; Credit Accounts Payable $2,500
13. Which of the following would cause the Debit column and the Credit
column of the Trial Balance to be unequal?
Placing the Fees Income balance in the Credit column
Placing the Office Equipment balance in the Debit column
Placing the Rent Expense balance in the Debit column
Placing the Prepaid Rent balance in the Credit column
14. A business receives a bill for utilities but decides to pay it next month.
The business would record the receipt of the bill by:
Debiting Accounts Payable; Crediting Utilities Expense
Debiting Utilities Expense; Crediting Cash
Debiting Utilities Expense; Crediting Accounts Payable
Debiting Utilities Expense; Crediting Accounts Receivable
15. An accounting system that involves recording the effects of each
transaction as debits and credits is
the double-entry system.
preparing financial statements.
completing one T account.
analyzing a business transaction.
16. The ending balance of the capital account appears as a separate line item
on what two statements?
the income statement and the balance sheet
the statement of owner's equity and the income statement
the statement of owner's equity and the balance sheet

 the trial balance and the income statement

17. Which of the following entries records the withdrawal of cash for
personal use by Ty Knott, the owner of a business?
debit Salary Expense and credit Cash
debit Cash and credit Salary Expense
debit Cash and credit Ty Knott, Capital
debit Ty Knott, Drawing, and credit Cash
18. The account used to record increases in owner's equity from the sale of
goods or services is
the Cash account.
the revenue account.
the capital account.
the drawing account.
19. If assets are numbered from 100-199, which of the following accounts
would not be given a number in the 100 series?
Accounts Receivable
Supplies
Accounts Payable
Prepaid Rent
20. Which of the following increase owner's equity?
expenses
receiving cash from customers
revenue
withdrawals
21. A firm paid cash to apply against a debt. To record this transaction, the
accountant would
debit Accounts Receivable and credit Cash.
debit Accounts Payable and credit Cash.
credit Cash and credit Accounts Payable.
debit Cash and credit Accounts Payable.

22. The "Net Income" or "Net Loss" is transferred from the income
statement to the
balance sheet.
chart of accounts.
trial balance.
statement of owner's equity.