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28. Which of the following applications of the rules of debit and credit is true?
a. decrease Prepaid Insurance with a credit and the normal balance is a credit
b. increase Accounts Payable with a credit and the normal balance is a debit
c. increase Supplies Expense with a debit and the normal balance is a debit
d. decrease Cash with a debit and the normal balance is a credit
29. The classification and normal balance of the accounts payable account is
a. an asset with a credit balance
b. a liability with a credit balance
c. owner's equity with a credit balance
d. revenue with a credit balance
30. The classification and normal balance of the supplies expense account is a(n)
a. asset with a debit balance
b. asset with a credit balance
c. expense with a debit balance
d. liability with a credit balance
31. The process of initially recording a business transaction is called
a. trial balancing
b. posting
c. journalizing
d. Balancing
32. If the two totals of a trial balance are not equal, it could be due to
a. failure to record a transaction
b. recording the same erroneous amount for both the debit and the credit parts of a
transaction
c. an error in determining the account balances, such as a balance being incorrectly
computed
d. recording the same transaction more than once
33. A trial balance is prepared to
a. prove that there were no errors made in recording transactions into the journal
b. prove that no errors were made in posting to the ledger
c. prove that each account balance is correct
d. summarize the account balances to help prepare financial statements
34. A credit balance in which of the following accounts would indicate a likely error?
a. Fees Earned
b. Salary Expense
c. Peter Penn, Capital
d. Accounts Payable
35. In which of the following types of accounts are increases recorded by debits?
a. assets, liabilities
b. drawing, liabilities
c. expenses, liabilities
d. assets, expenses