Question : 42. In accounting, the terms debit and credit indicate, respectively: A. Increase and : 1229682

42. In accounting, the terms debit and credit indicate, respectively: 
A. Increase and decrease.
B. Left and right.
C. Decrease and increase.
D. Right and left.

43. In a ledger, debit entries cause: 
A. Increases in owners’ equity, decreases in liabilities, and increases in assets.
B. Decreases in liabilities, increases in assets, and decreases in owners’ equity.
C. Decreases in assets, decreases in liabilities, and increases in owners’ equity.
D. Decreases in assets, increases in liabilities, and increases in owners’ equity.

44. Which of the following accounts normally has a credit balance? 
A. Cash.
B. Service revenue.
C. Accounts receivable.
D. Utilities expense.

45. Which of the following is not true regarding the general ledger account for Cash? 
A. The balance of the account indicates the amount of cash owned by the business on a particular date.
B. Each debit entry in the Cash account represents a cash receipt.
C. Debit entries are made before credit entries.
D. Credit entries in the Cash account represent cash payments.

46. The rules of debit and credit may be summarized as follows: 
A. Accounts on the left side of the balance sheet are increased by debits, whereas, accounts on the right side of the balance sheet are increased by credits.
B. The balance of a ledger account is increased by debit entries and is decreased by credit entries.
C. Accounts on the left side of the balance sheet are increased by credits, whereas accounts on the right side of the balance sheet are increased by debits.
D. The balance of a ledger account is increased by credit entries and is decreased by debit entries.

47. The essential point of a double-entry system of accounting is that every transaction: 
A. Affects accounts on both sides of the balance sheet.
B. Is recorded in both the journal and the ledger.
C. Increases one ledger account and decreases another.
D. Affects two or more ledger accounts and is recorded by an equal dollar amount of debits and credits.

48. Double-entry accounting is characterized by which of the following? 
A. Every transaction affects both an asset account and either a liability account or an owners’ equity account.
B. The number of general ledger accounts with debit balances is equal to the number with credit balances.
C. The total dollar amount of debit entries posted to the general ledger is equal to the dollar amount of the credit entries.
D. The number of debit entries posted to the general ledger equals the number of credit entries.

49. The process of originally recording a business transaction in the accounting records is termed: 
A. Journalizing.
B. Footing.
C. Posting.
D. Balancing.

50. If the trial balance has a higher debit balance than credit balance, it signifies: 
A. Assets are more than liabilities.
B. A profit.
C. A loss.
D. An error has been made.

51. Brett Tarek, a manager at D&J Landscaping, Inc. needs information regarding the amount of accounts payable currently owed by the company. This information would most easily be found in the: 
A. General ledger.
B. General journal.
C. Income statement.
D. Notes to the financial statements.