11.Which of the following accounts are debited to recordincrease in balances?

a. Assets and Liabilities

b. Expenses and Liabilities

c. Assets and Expenses

d. Drawing and Liabilities

12. Which of the followingentries records the payment of an account payable?

a. debit Cash; credit AccountsPayable

b. debit Cash; credit SuppliesExpense

c. debit Accounts Payable; creditCash

d. debit Accounts Receivable;credit Cash

13. Which of the followingis nota correct rule of debits andcredits?

a. Liabilities, revenues andowner's equity are increased by credits.

b. The normal balance for revenuesand expenses is a credit.

c. Assets, expenses and withdrawalsare increased by debits.

14.

What effects does this journal entry have on the accounts?

a. Decrease Cash and decreaseLand

b. Increase Cash and increaseLand

c. Increase Land and decreaseCash

d. Increase Cash and decreaseLand

d. Assets are decreased by creditsand have a normal debit balance.

15. The process of transferringthe journal entries to the accounts is known as

a. summarizing.

b. updating.

c. posting.

d. journalizing.

16. A trial balance is preparedto

a. summarize the account balancesto help prepare financial statements.

b. prove that each account balanceis correct.

c. prove that there were no errorsmade in recording transactions into the journal.

d. prove that no errors were madein posting to the ledger.

17.The revenue recognitionconcept

a. states that revenue is notrecorded until the cash is received.

b. determines when revenue iscredited to a revenue account.

c. controls all revenue reportingfor the cash basis of accounting.

d. is not in conflict with the cashmethod of accounting.

18. Using accrual accounting,expenses are recorded and reported only

a. if they are paid before they areincurred.

b. if they are paid after they areincurred.

c. when they are incurred and paidat the same time.

d. when they are incurred, whetheror not cash is paid.

19. Deferred expenseshave

a. not yet been recorded asexpenses.

b. been incurred and paid.

c. been recorded as expenses andpaid.

d. not yet been recorded asexpenses or paid.

20. Adjusting entriesare

a. rarely needed in largecompanies.

b. the same as correctingentries.

c. needed to bring accounts up todate and match revenue and expense.

d. optional under generallyaccepted accounting principles.

Answer rating: 100% (QA)

11 Answer c Asset and liabilities Explanation Asset and Expenses both have a normal debit balance Wh... View the full answer