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T-accounts
Multiple Choice
True or False
Miscellaneous
100
Bob withdrew $500 for personal reasons.
What is... Credit $500 Cash, Debit $500 Owner Withdrawals
100
The entire group of accounts maintained by a company is called a: (ledger/journal/register/T-account)
What is... Ledger
100
An Expense can include , Rent , Land & Advertising. Is this statement true? And if not, what is wrong about it?
What is... It is false, and the Land does not fall under an expense account.
100
A simple characterization of an account form used as a helpful tool in showing the effects of transactions on specific accounts.
What is... A T-account
200
Purchased $4600 of additional supplies on credit.
What is... Debit $4600 Supplies, Credit $4600 on Accounts Payable
200
Bob began his electrical company on April 1st, 2014, and showed the following items after the first month of operations. Which of these items belongs on a balance sheet? A) Supplies B) Salary Expense C) Supplies Expense D) Fees Earned
What is... Answer A) Supplies
200
Bob's electrical company purchased $14,000 worth of supplies on credit. They recorded this transaction in the cash account. Was this a correct recording of the information? And if not, what would the correct recording be?
What is... Incorrect, and the correct recording would be to put it into the supplies account.
200
Prior to Canada’s adoption of IFRS, this was the authoritative body that set accounting standards.
What is... The Accounting Standards Board (AcSB)
300
Billed a customer $1200 for completed work. The balance is due in May.
What is... Debit $1200 Accounts receivable, Credit $1200 service revenue.
300
Which of the following is an economic resource HELD by a business? A) Rental Revenue B) Accounts receivable C) Accounts Payable D) Rent Expense
What is... Answer: B) Account Recievable
300
Bob currently owes $7,000 in accounts payable, he pays the balance & records this action on the Credit side of the Accounts payable account. Is this a liable recording of information? And if not, what would the correct recording be?
What is... It was an incorrect recording. The correct recording would to record it on the DR side of accounts payable.
300
Which statement out of the following statements describes how the accounting equation applies to businesses? A) The fact that, at any point in time, total revenues will always equal total Liabilities and assets is reflected in the equation. B) Revenues-Expenses= Assets is stated in the equation. C) All monetary business transactions and events apply to the equation.
What is... C) All monetary business transactions and events apply to the equation
400
Bob hired an second electrician part time to start next month who will get paid $3100 per month.
What is... Do nothing
400
The proprietor of a restaurant purchased a three-year insurance policy for cash. Recording the purchase of the policy requires a/an: A) Asset to be debited, a liability to be credited B) Liability to be Debited, an Asset to be Credited C) Asset to be Debited, and another Asset to be Credited D) Withdrawal account to be debited, an asset to be credited.
What is... C) Asset to be debited, and another asset to be credited
400
Bob Collects $1,800 in electrical services , he then debits $1,800 to the cash account & Credits the Service revenue account. Was this a liable recording? If not, what should he have done instead?
What is... This was a liable recording.
400
Arrange the following steps in the order you would do them when entering them into a journal. A) Enter Explanation B) Enter the names of the accounts credited and their amounts C) Enter the names of the accounts debited and their amounts D) Enter the date of the transaction in the date column
What is... C) Enter the names of the accounts debited and their amounts 1st D) Enter the date of the transaction in the date column 2nd A) Enter Explanation 3rd B) Enter the names of the accounts credited and their amounts 4th
500
Bob bought $6000 in equipment, he traded $2000 dollars in old equipment and put the rest on credit.
What is... Debit $6000 on equipment, Credit $2000 on equipment and Credit $4000 on accounts payable.
500
Create a journal entry that increases equity. A) DR Withdrawals, CR Cash B) DR Office Supplies, CR Accounts Payable C) DR Unearned Revenue, CR Earned Revenue D) DR Accounts Payable, CR Notes Payable
What is... C) DR Unearned revenue, CR Earned Revenue
500
The ASEP are rules created by the accounting standards board to govern accounting for Canadian private enterprise. Is this a true statement? If this statement is incorrect, what is the correct statement?
What is... This is not true. The correct answer is "The ASPE are the rules created by the accounting standards board to govern accounting for Canadian private enterprise.
500
Out of these five accounts, which three would appear on a balance sheet? a) D. Smith Capital b) Rental Revenue c) Equipment d) Accounts payable e) Utilities Expense
What is... A) D. Smith Capital, C) Equipment, D) Accounts Payable