Accumulated Depreciation Credit or Debit - PDF

							Accounting I - The Basics

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.

____    1. Which of the following accounts is an asset account?
           a. Salaries Expense
           b. Drawing
           c. Accounts Payable
           d. Cash
____    2. Which of the following accounts is a liability account?
           a. Notes Payable
           b. Prepaid Insurance
           c. Capital
           d. Cash
____    3. Which of the following accounts is an owner's equity account?
           a. Cash
           b. Accounts Payable
           c. Prepaid Insurance
           d. Julia Davis, Capital
____    4. A chart of accounts is:
           a. the same as a balance sheet
           b. usually a listing of accounts in alphabetical order
           c. usually a listing of accounts in financial statement order
           d. used in place of a ledger
____    5. A debit may signify a(n):
           a. decrease in asset accounts
           b. decrease in liability accounts
           c. increase in the capital account
           d. decrease in drawing account
____    6. Which of the following types of accounts have a normal credit balance?
           a. Drawing
           b. Assets
           c. Expense
           d. Liability
____    7. Which of the following types of accounts have a normal debit balance?
           a. Assets and expenses
           b. Liabilities
           c. Revenue and expenses
           d. Assets and liabilities
____    8. A credit may signify a:
           a. decrease in assets
           b. decrease in liabilities
           c. decrease in capital
           d. decrease in revenue
____    9. Which of the following describes the classification and normal balance of the accounts receivable account?
           a. Asset, debit
           b. Liability, credit
           c. Owner's equity, credit
           d. Revenue, credit
____   10. The classification and normal balance of the supplies account is a(n):
           a. asset with a credit balance
           b. asset with a debit balance
           c. liability with a credit balance
           d. liability with a debit balance
____   11. Which of the following entries records the receipt of a utilities bill from the water company?
           a. debit Utilities Expense; credit Utilities Payable
           b. debit Utilities Payable; credit Accounts Receivable
           c. debit Accounts Payable; credit Cash
           d. debit Accounts Payable; credit Utilities Payable
____   12. Office supplies were sold by J's Appliance Repair at cost to another repair shop, with cash received. Which
           of the following entries for J's Appliance Repair records this transaction?
           a. Office Supplies, debit; Cash, credit
           b. Office Supplies, debit; Accounts Payable, credit
           c. Cash, debit; Office Supplies, credit
           d. Accounts Payable, debit; Office Supplies, credit
____   13. Cash was paid by J's Appliance Repair to creditors on account. Which of the following entries for J's records
           this transaction?
           a. Cash, debit; J's, Capital, credit
           b. Accounts Payable, debit; Cash, credit
           c. Accounts Receivable, debit; Cash, credit
           d. Accounts Payable, debit; Account Receivable, credit
____   14. The process of initially recording a business transaction is called:
           a. trial balancing
           b. posting
           c. journalizing
           d. balancing
____   15. Which of the following entries records the payment of rent for the current month?
           a. Cash, debit; Rent Expense, credit
           b. Rent Expense, debit; Cash, credit
           c. Rent Expense, debit; Accounts Receivable, credit
           d. Accounts Payable, debit; Rent Expense, credit
____   16. The process of rewriting the information from the journal into the ledger is called:
           a. sliding
           b. transposing
           c. journalizing
           d. posting
____   17. Accrued expenses have:
           a. not yet been incurred, paid, or recorded
           b. been incurred, not paid, but have been recorded
           c. been incurred, not paid, and not recorded
           d. been paid but have not yet been incurred
____ 18. The balance in the prepaid rent account before adjustment at the end of the year is $15,000, which represents
         three months' rent paid on December 1. The adjusting entry required on December 31 is:
         a. debit Rent Expense, $5,000; credit Prepaid Rent, $5,000
         b. debit Prepaid Rent, $10,000; credit Rent Expense, $5,000
         c. debit Rent Expense, $10,000; credit Prepaid Rent, $5,000
         d. debit Prepaid Rent, $5,000; credit Rent Expense, $5,000
____ 19. The entry to adjust for the cost of supplies used during the accounting period is:
         a. Supplies, debit; Income Summary, credit
         b. Income Summary, debit; Supplies, credit
         c. Accounts Payable, debit; Supplies Expenses, credit
         d. Supplies Expense, debit; Supplies, credit
____ 20. Accumulated Depreciation appears on the:
         a. balance sheet
         b. statement of owner's equity
         c. income statement
         d. statement of cash flows
____ 21. Salaries Payable appears on the:
         a. balance sheet
         b. statement of owner's equity
         c. income statement
         d. statement of cash flows
____ 22. Depreciation Expense appears on the:
         a. balance sheet
         b. statement of owner's equity
         c. income statement
         d. statement of cash flows
____ 23. Accounts Receivable appears on the:
         a. balance sheet
         b. statement of owner's equity
         c. income statement
         d. statement of cash flows
____ 24. Which of the following accounts appears on a post-closing trial balance?
         a. Insurance Expense
         b. Prepaid Insurance
         c. Drawing
         d. Fees Earned
____ 25. The following accounts were taken from the Adjusted Trial Balance columns of the work sheet:

           Accumulated Depreciation                                                          $ 3,000
           Fees Earned                                                                        20,000
           Depreciation Expense                                                                3,500
           Insurance Expense                                                                   1,000
           Prepaid Rent                                                                        4,000
           Supplies                                                                              500

           Net income for the period is:
           a. $15,500
           b. $ 8,000
           c. $15,000
           d. $11,000