,DOWNLOAD THE Test Bank for College Accounting Practical Approach 13th
Edition Slater
College Accounting, 13Ce (Slater)
Chapter 2 Debits and Credits: Analyzing and Recording Business Transactions
2.1 Recording transactions in T accounts according to the rules of debit and credit.
1) One of the following statements does not help to explain the design of a T account:
A) The account has a balance.
B) The account has a left side.
C) The account has a right side.
D) The account has a title.
Answer: A
Diff: 2 Type: MC
Objective: 2-1
2) When speaking of the Standard Account Form, it is TRUE to say that
A) It is widely used in business records today.
B) The form has no room for indicating either a debit or a credit.
C) There is no Date column included in this form.
D) All of a company's accounts together form a ledger.
Answer: D
Diff: 2 Type: MC
Objective: 2-1
3) Which of these statements about T accounts is FALSE?
A) They are used mainly in classroom demonstrations.
B) They have both a left side and a right side.
C) They are used extensively in computer accounting.
D) Each account has a normal balance which is either a debit or a credit.
Answer: C
Diff: 1 Type: MC
Objective: 2-1
4) What device is used to record the increases and decreases caused by business transactions to
individual assets, liabilities, and owner's equity?
A) Chart of accounts
B) Account
C) Trial Balance
D) Footings
Answer: B
Diff: 1 Type: MC
Objective: 2-1
,DOWNLOAD THE Test Bank for College Accounting Practical Approach 13th
Edition Slater
5) An account had a starting debit balance of $350. There were debit postings of $400 and credit postings
of $200 during the month. The ending balance is
A) $550 debit.
B) $450 credit.
C) $950 debit.
D) $200 debit.
Answer: A
Diff: 2 Type: MC
Objective: 2-1
6) The word "debit" comes from which language?
A) Latin
B) French
C) Italian
D) Norsk
Answer: A
Diff: 1 Type: MC
Objective: 2-1
7) With respect to the balancing of an account, which one of these statements is FALSE?
A) If the total on the credit side was the larger, the balance is a credit.
B) Dollar signs are always used to designate a balance amount.
C) Footings of each side of the account are needed to determine the balance.
D) If the total on the debit side was the larger, the balance is a debit.
Answer: B
Diff: 1 Type: MC
Objective: 2-1
8) Accounts Receivable had a normal starting balance of $1000. There were debit postings of $800 and
credit postings of $400 during the month. The ending balance is
A) $600 credit.
B) $1,400 debit.
C) $2,200 debit.
D) $1,400 credit.
Answer: B
Diff: 2 Type: MC
Objective: 2-2
9) An account had a $500 credit starting balance. There were debit postings of $400 and credit postings of
$150 during the month. The ending balance is
A) $250 credit.
B) $750 debit.
C) $1050 credit.
D) $150 credit.
Answer: A
Diff: 2 Type: MC
Objective: 2-1
, DOWNLOAD THE Test Bank for College Accounting Practical Approach 13th
Edition Slater
10) The beginning balance in the Computers account was $2,500. The company purchased an additional
$500 worth of computers. The balance in the account is
A) debit of $2,000.
B) credit of $3,000.
C) debit of $3,000.
D) credit of $2,000.
Answer: C
Diff: 1 Type: MC
Objective: 2-2
11) Cash had a normal starting balance of $600. There were debit postings of $200 and credit postings of
$300 during the month. The ending balance is
A) $500 credit.
B) $1,100 debit.
C) $500 debit.
D) $1,100 credit.
Answer: C
Diff: 2 Type: MC
Objective: 2-2
12) Cash increases on the debit side of the account.
Answer: TRUE
Diff: 1 Type: TF
Objective: 2-2
13) Revenues are recorded when earned.
Answer: TRUE
Diff: 1 Type: TF
Objective: 2-2
14) A chart of accounts is a listing of the accounts and their ending balances.
Answer: FALSE
Diff: 1 Type: TF
Objective: 2-1
15) Revenue increases on the debit side of the account.
Answer: FALSE
Diff: 1 Type: TF
Objective: 2-2
16) Accounts Payable increases on the credit side of the account.
Answer: TRUE
Diff: 1 Type: TF
Objective: 2-2
17) Withdrawals increases on the debit side of the account.
Answer: TRUE
Diff: 2 Type: TF
Objective: 2-2
Edition Slater
College Accounting, 13Ce (Slater)
Chapter 2 Debits and Credits: Analyzing and Recording Business Transactions
2.1 Recording transactions in T accounts according to the rules of debit and credit.
1) One of the following statements does not help to explain the design of a T account:
A) The account has a balance.
B) The account has a left side.
C) The account has a right side.
D) The account has a title.
Answer: A
Diff: 2 Type: MC
Objective: 2-1
2) When speaking of the Standard Account Form, it is TRUE to say that
A) It is widely used in business records today.
B) The form has no room for indicating either a debit or a credit.
C) There is no Date column included in this form.
D) All of a company's accounts together form a ledger.
Answer: D
Diff: 2 Type: MC
Objective: 2-1
3) Which of these statements about T accounts is FALSE?
A) They are used mainly in classroom demonstrations.
B) They have both a left side and a right side.
C) They are used extensively in computer accounting.
D) Each account has a normal balance which is either a debit or a credit.
Answer: C
Diff: 1 Type: MC
Objective: 2-1
4) What device is used to record the increases and decreases caused by business transactions to
individual assets, liabilities, and owner's equity?
A) Chart of accounts
B) Account
C) Trial Balance
D) Footings
Answer: B
Diff: 1 Type: MC
Objective: 2-1
,DOWNLOAD THE Test Bank for College Accounting Practical Approach 13th
Edition Slater
5) An account had a starting debit balance of $350. There were debit postings of $400 and credit postings
of $200 during the month. The ending balance is
A) $550 debit.
B) $450 credit.
C) $950 debit.
D) $200 debit.
Answer: A
Diff: 2 Type: MC
Objective: 2-1
6) The word "debit" comes from which language?
A) Latin
B) French
C) Italian
D) Norsk
Answer: A
Diff: 1 Type: MC
Objective: 2-1
7) With respect to the balancing of an account, which one of these statements is FALSE?
A) If the total on the credit side was the larger, the balance is a credit.
B) Dollar signs are always used to designate a balance amount.
C) Footings of each side of the account are needed to determine the balance.
D) If the total on the debit side was the larger, the balance is a debit.
Answer: B
Diff: 1 Type: MC
Objective: 2-1
8) Accounts Receivable had a normal starting balance of $1000. There were debit postings of $800 and
credit postings of $400 during the month. The ending balance is
A) $600 credit.
B) $1,400 debit.
C) $2,200 debit.
D) $1,400 credit.
Answer: B
Diff: 2 Type: MC
Objective: 2-2
9) An account had a $500 credit starting balance. There were debit postings of $400 and credit postings of
$150 during the month. The ending balance is
A) $250 credit.
B) $750 debit.
C) $1050 credit.
D) $150 credit.
Answer: A
Diff: 2 Type: MC
Objective: 2-1
, DOWNLOAD THE Test Bank for College Accounting Practical Approach 13th
Edition Slater
10) The beginning balance in the Computers account was $2,500. The company purchased an additional
$500 worth of computers. The balance in the account is
A) debit of $2,000.
B) credit of $3,000.
C) debit of $3,000.
D) credit of $2,000.
Answer: C
Diff: 1 Type: MC
Objective: 2-2
11) Cash had a normal starting balance of $600. There were debit postings of $200 and credit postings of
$300 during the month. The ending balance is
A) $500 credit.
B) $1,100 debit.
C) $500 debit.
D) $1,100 credit.
Answer: C
Diff: 2 Type: MC
Objective: 2-2
12) Cash increases on the debit side of the account.
Answer: TRUE
Diff: 1 Type: TF
Objective: 2-2
13) Revenues are recorded when earned.
Answer: TRUE
Diff: 1 Type: TF
Objective: 2-2
14) A chart of accounts is a listing of the accounts and their ending balances.
Answer: FALSE
Diff: 1 Type: TF
Objective: 2-1
15) Revenue increases on the debit side of the account.
Answer: FALSE
Diff: 1 Type: TF
Objective: 2-2
16) Accounts Payable increases on the credit side of the account.
Answer: TRUE
Diff: 1 Type: TF
Objective: 2-2
17) Withdrawals increases on the debit side of the account.
Answer: TRUE
Diff: 2 Type: TF
Objective: 2-2
