Question 1

Debit entries are used to
A) increase asset accounts.
B) decrease expense accounts.
C) increase liability accounts.
D) increase revenue accounts.

Accepted Answer

Debit entries increase asset accounts.

Question 2

Use the selected accounts for Copper Corp.presented below to answer the following question(s). $\begin{array}{lr|} 
& {\text { CASH }} \
\hline 8 / 1 \text { Balance } & 6,000 \
8 / 3 & 500 \
8 / 5 & 400 \
8 / 7 & 900
\end{array}$$\begin{array}{l}
\text { ACCOUNTS RECEIVABLE }\
\begin{array}{ll|ll}
\hline 8 / 2 & 1,800 & 8 / 7 & 900
\end{array}
\end{array}$

$\text { DEPOSITS RECEIVED IN ADVANCE }$
$\begin{array}{l}
\text { (A Liability Account) }\
\begin{array}{r|rr}
\hline  &8/3&500 \
\end{array}
\end{array}$$\begin{array}{l}
\text { SALES }\
\begin{array}{r|rr}
\hline 8 / 2 & 1,800 \
8 / 5 & 400
\end{array}
\end{array}$ ​
-Read the information on Copper Corp. On which date did the country club collect an advance deposit?
A) August 2
B) August 3
C) August 5
D) August 7

Accepted Answer

The advance deposit was collected on August 3, as indicated by the entry in the "Deposits Received in Advance" account.

Question 3

Credit entries are used to
A) increase asset accounts.
B) increase liability accounts.
C) decrease revenue accounts.
D) decrease liability accounts.

Accepted Answer

Credit entries are used to increase liability accounts, as per the rules of double-entry bookkeeping. Credits increase liabilities, equity, and revenue accounts, and decrease asset and expense accounts.

Question 4

A credit means that
A) the event has an effect on the left side of an account.
B) the event is unfavorable.
C) the event is favorable.
D) None of these choices.

Accepted Answer

Credits in accounting do not inherently mean an event is favorable or unfavorable, nor do they specifically affect only the left side of an account. Credits typically affect the right side of an account, contrasting with debits, which affect the left side.

Question 5

The record used to accumulate monetary information for each individual asset, liability, stockholders' equity, revenue, and expense item is a(an)
A) Chart of accounts
B) General Journal
C) General Ledger
D) Account

Accepted Answer

An account is the record used to accumulate monetary information for each individual asset, liability, stockholders' equity, revenue, and expense item.

Question 6

Use the selected accounts for Copper Corp.presented below to answer the following question(s). $\begin{array}{lr|} 
& {\text { CASH }} \
\hline 8 / 1 \text { Balance } & 6,000 \
8 / 3 & 500 \
8 / 5 & 400 \
8 / 7 & 900
\end{array}$$\begin{array}{l}
\text { ACCOUNTS RECEIVABLE }\
\begin{array}{ll|ll}
\hline 8 / 2 & 1,800 & 8 / 7 & 900
\end{array}
\end{array}$

$\text { DEPOSITS RECEIVED IN ADVANCE }$
$\begin{array}{l}
\text { (A Liability Account) }\
\begin{array}{r|rr}
\hline  &8/3&500 \
\end{array}
\end{array}$$\begin{array}{l}
\text { SALES }\
\begin{array}{r|rr}
\hline 8 / 2 & 1,800 \
8 / 5 & 400
\end{array}
\end{array}$ ​
-Read the information about Copper Corp. Which of the following describes the transaction which occurred on August 7?
A) Sold club memberships on credit.
B) Cash sales of daily fees.
C) Collected an advance deposit in cash.
D) Received cash payments of accounts receivable.

Accepted Answer

The transaction on August 7 involves receiving cash, as indicated by the cash account increase, and a corresponding decrease in accounts receivable, which suggests that it was a collection of cash on previously sold items or services on credit, not a new sale or advance deposit.

Question 7

A file or book which contains a record for all accounts used by a company, including the account balance, is called a
A) chart of accounts
B) general journal
C) general ledger
D) trial balance

Accepted Answer

A general ledger is a file or book that contains a record for all accounts used by a company, including the account balance. A chart of accounts is a list of all the accounts a company uses, a general journal is where all transactions are initially recorded, and a trial balance is a list of all accounts and their balances used to ensure that the entries in the financial statements are accurate. Therefore, the best choice is C, general ledger.

Question 8

The system of accounting in which there are at least two accounts affected in every transaction so that the accounting equation stays in balance is a(an)
A) Double-entry system
B) Debit
C) Credit
D) Journalizing

Accepted Answer

The double-entry system is a method of accounting in which every transaction is recorded in at least two accounts, with one account debited and the other credited. This system ensures that the accounting equation of assets = liabilities + equity remains in balance. Therefore, option A is the correct answer. Option B refers to one aspect of the double-entry system, while option C refers to the recording of one side of a transaction, and option D refers to the process of recording transactions in a journal.

Question 9

All of the following accounts have normal credit balances except
A) Investments
B) Common Stock (Capital Stock)
C) Accounts payable
D) Service Revenue

Accepted Answer

All the accounts except Investments have debit balances. Investments have a normal credit balance since it represents an increase in assets.

Question 10

Which of the following accounts is increased by a credit entry?
A) Cash
B) Equipment
C) Accounts receivable
D) None of these choices.

Accepted Answer

None of the listed accounts are increased by a credit entry. Cash, Equipment, and Accounts Receivable are all asset accounts, which are increased by debits, not credits.

Question 11

Which of the following accounts is increased by a credit entry?
A) Interest Revenue
B) Salary Expense
C) Accounts Receivable
D) Dividends

Accepted Answer

Interest Revenue is a revenue account, which means that it increases with a credit entry.

Question 12

Which pair of accounts has the same set of rules for debit and credit entries?
A) Service Revenue and Rent Expense
B) Dividends and Retained Earnings
C) Equipment and Salaries Expense
D) Accounts Receivable and Accounts Payable

Accepted Answer

The answer of Which pair of accounts has the same...

Question 13

Use the selected accounts for Copper Corp.presented below to answer the following question(s). $\begin{array}{lr|} 
& {\text { CASH }} \
\hline 8 / 1 \text { Balance } & 6,000 \
8 / 3 & 500 \
8 / 5 & 400 \
8 / 7 & 900
\end{array}$$\begin{array}{l}
\text { ACCOUNTS RECEIVABLE }\
\begin{array}{ll|ll}
\hline 8 / 2 & 1,800 & 8 / 7 & 900
\end{array}
\end{array}$

$\text { DEPOSITS RECEIVED IN ADVANCE }$
$\begin{array}{l}
\text { (A Liability Account) }\
\begin{array}{r|rr}
\hline  &8/3&500 \
\end{array}
\end{array}$$\begin{array}{l}
\text { SALES }\
\begin{array}{r|rr}
\hline 8 / 2 & 1,800 \
8 / 5 & 400
\end{array}
\end{array}$ ​
-Read the information about Copper Corp. Assuming that there are no other transactions, how much was owed to the club by the membership on August 8th?
A) $1,800
B) $1,300
C) $ 900
D) $ 500

Accepted Answer

On August 2nd, $1,800 was added to Accounts Receivable, and on August 7th, $900 was collected, reducing the amount owed to $900.

Question 14

An entry made to the right side of an account is called a
A) debit
B) credit
C) double-entry system
D) journal entry

Accepted Answer

A credit entry is made on the right side of an account in the double-entry accounting system. This is because the system requires each transaction to have equal debits and credits, so when something is credited to an account, there must also be a corresponding debit somewhere else.

Question 15

Use the selected accounts for Copper Corp.presented below to answer the following question(s). $\begin{array}{lr|} 
& {\text { CASH }} \
\hline 8 / 1 \text { Balance } & 6,000 \
8 / 3 & 500 \
8 / 5 & 400 \
8 / 7 & 900
\end{array}$$\begin{array}{l}
\text { ACCOUNTS RECEIVABLE }\
\begin{array}{ll|ll}
\hline 8 / 2 & 1,800 & 8 / 7 & 900
\end{array}
\end{array}$

$\text { DEPOSITS RECEIVED IN ADVANCE }$
$\begin{array}{l}
\text { (A Liability Account) }\
\begin{array}{r|rr}
\hline  &8/3&500 \
\end{array}
\end{array}$$\begin{array}{l}
\text { SALES }\
\begin{array}{r|rr}
\hline 8 / 2 & 1,800 \
8 / 5 & 400
\end{array}
\end{array}$ ​
-Read the information on Copper Corp. On which date did the company make cash sales for daily golf and swimming fees?
A) August 2
B) August 3
C) August 5
D) August 7

Accepted Answer

On August 5, the company recorded sales of $400 and also increased cash by $400 on the same day, indicating cash sales for daily golf and swimming fees.

Question 16

Double-entry accounting is best characterized as:
A) The number of debit entries posted to the ledger equals the number of credit entries.
B) The number of ledger accounts with debit balances is equal to the number with credit balances.
C) Every transaction affects both an asset account and either a liability account or a stockholders' equity account.
D) The total dollar amount of debit entries posted to the ledger is equal to the dollar amount of the credit entries.

Accepted Answer

Double-entry accounting ensures that for every transaction, the total debits equal the total credits in dollar amount, maintaining the accounting equation's balance.

Question 17

All of the following accounts have normal debit balances except
A) Accounts Receivable
B) Dividends
C) Office Supplies Expense
D) Sales

Accepted Answer

Sales accounts typically have a normal credit balance, as they represent income earned by the business. Accounts Receivable, Dividends, and Office Supplies Expense all normally have debit balances.

Question 18

An abbreviated version of an account which is useful for analyzing the effects of business transactions is the
A) chart of accounts
B) double entry system
C) T account
D) trial balance

Accepted Answer

A T account is a simplified representation of an account used for educational and analytical purposes, showing the effects of transactions on that account.

Question 19

Use the selected accounts for Copper Corp.presented below to answer the following question(s). $\begin{array}{lr|} 
& {\text { CASH }} \
\hline 8 / 1 \text { Balance } & 6,000 \
8 / 3 & 500 \
8 / 5 & 400 \
8 / 7 & 900
\end{array}$$\begin{array}{l}
\text { ACCOUNTS RECEIVABLE }\
\begin{array}{ll|ll}
\hline 8 / 2 & 1,800 & 8 / 7 & 900
\end{array}
\end{array}$

$\text { DEPOSITS RECEIVED IN ADVANCE }$
$\begin{array}{l}
\text { (A Liability Account) }\
\begin{array}{r|rr}
\hline  &8/3&500 \
\end{array}
\end{array}$$\begin{array}{l}
\text { SALES }\
\begin{array}{r|rr}
\hline 8 / 2 & 1,800 \
8 / 5 & 400
\end{array}
\end{array}$ ​
-Read the information for Copper Corp. On which date did the country club make a credit sale of club memberships?
A) August 2
B) August 3
C) August 5
D) August 7

Accepted Answer

The credit sale of club memberships is indicated by the entry in the Accounts Receivable on August 2, which aligns with the sales entry on the same date, suggesting that the sale was made on credit.

Question 20

Which pair of accounts has the same set of rules for debit and credit entries?
A) Common Stock (Capital Stock) and Accounts Payable
B) Salaries Expense and Retained Earnings
C) Cash and Notes Payable
D) Sales Revenue and Accounts Receivable

Accepted Answer

The answer of Which pair of accounts has the same...

Quiz 3: Processing Accounting Information

Debit entries are used to

Credit entries are used to

A credit means that

The record used to accumulate monetary information for each individual asset, liability, stockholders' equity, revenue, and expense item is a(an)

A file or book which contains a record for all accounts used by a company, including the account balance, is called a

The system of accounting in which there are at least two accounts affected in every transaction so that the accounting equation stays in balance is a(an)

All of the following accounts have normal credit balances except

Which of the following accounts is increased by a credit entry?

Which of the following accounts is increased by a credit entry?

Which pair of accounts has the same set of rules for debit and credit entries?

An entry made to the right side of an account is called a

Double-entry accounting is best characterized as:

All of the following accounts have normal debit balances except

An abbreviated version of an account which is useful for analyzing the effects of business transactions is the

Which pair of accounts has the same set of rules for debit and credit entries?