Question : 81. An account balance is: A. The total of the credit side of : 1256628

 

 

81. An account balance is: 

A. The total of the credit side of the account.

B. The total of the debit side of the account.

C. The difference between the total debits and total credits for an account including the beginning balance.

D. Assets = Liabilities + Equity

E. Always a credit.

 

82. Of the following accounts, the one that normally has a credit balance is: 

A. Cash

B. Office Equipment

C. Sales Salaries Payable

D. Dividends

E. Sales Salaries Expense

 

 

83. A debit is used to record: 

A. A decrease in an asset account.

B. A decrease in an expense account.

C. An increase in a revenue account.

D. An increase in the balance of common stock.

E. A decrease in the balance of retained earnings.

 

 

84. A credit entry: 

A. Increases asset and expense accounts and decreases liability, common stock, and revenue accounts.

B. Is always a decrease in an account.

C. Decreases asset and expense accounts and increases liability, common stock, and revenue accounts.

D. Is recorded on the left side of a T-account.

E. Is always an increase in an account.

 

 

85. Double-entry accounting is an accounting system: 

A. That records each transaction twice.

B. That records the effects of transactions and other events in at least two accounts with equal debits and credits.

C. In which the impact of each transaction is checked twice to ensure there are no errors.

D. That may only be used if T-accounts are used.

E. That records the effects of transactions on at least two financial statements.

 

 

86. Which of the following is a true statement regarding debits and credits? 

A. If a company earned a profit, debits will not equal credits.

B. For a business, debits are better than credits.

C. A company’s books are not in balance if they have a current period loss.

D. Assets and expenses are both increased with a debit.

E. Liabilities and equity are both increased with a debit.

 

 

87. During the month of February, Hoffer Company had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the January 31 beginning cash balance? 

A. $700

B. $1,100

C. $2,900

D. $0

E. $4,300

 

88. The following transactions occurred during July:

a. Received $900 cash for services provided to a customer during July.

b. Received $2,200 cash investment from Barbara Hanson, the owner of the business.

c. Received $750 from a customer in partial payment of his account receivable, which arose from sales in June.

d. Provided services to a customer on credit, $375.

e. Signed a promissory note for a $6,000 bank loan.

f. Received $1,250 cash from a customer for services to be rendered next year.

What was the amount of revenue for July? 

A. $900

B. $1,275

C. $2,525

D. $3,275

E. $11,100

 

89. These transactions were completed by the art gallery opened by Zed Bennett.

a. Bennett started the gallery, Artery, by investing $40,000 cash and equipment valued at $18,000 in exchange for common stock.

b. Purchased $70 of office supplies on credit.

c. Paid $1,200 cash for the receptionist’s salary.

d. Sold a painting for an artist and collected a $4,500 cash commission on the sale.

e. Completed an art appraisal and billed the client $200.

What was the balance of the cash account after these transactions were posted? 

A. $12,230

B. $12,430

C. $43,300

D. $43,430

E. $61,430

 

 

90. The debt ratio is used: 

A. To measure the amount of equity relative to the expenses.

B. To reflect the risk associated with a company’s debts.

C. Only by banks when a business applies for a loan.

D. To determine how much debt a firm should pay off.

E. To determine who a company owes.