This document contains 20 multiple choice questions about basic accounting concepts like debits and credits, the accounting equation, and the chart of accounts. It tests understanding of how common transactions are recorded, including examples involving cash, expenses, assets, liabilities, and owner's equity. For each question, the correct answer is identified but the explanations are removed. The questions cover a range of fundamental accounting topics for small businesses.

1. Question 1 of 20 0.0/ 5.0 points the accounts receivable account has
Question 1 of 200.0/ 5.0 PointsThe Accounts Receivable account has total debit postings of
$1,900 and credit postings of $1,100. The balance of the account is a/an [removed]A. $800
debit. [removed]B. $800 credit. [removed]C. $2,600 credit. [removed]D. $2,600
debit. Question 2 of 205.0/ 5.0 PointsThe business incurred an expense and paid it
immediately. To record this transaction, [removed]A. an expense is debited, and a liability is
credited. [removed]B. an expense is debited, and an asset is credited. [removed]C. an
expense is debited, and Capital is credited. [removed]D. None of the above Question 3 of
200.0/ 5.0 PointsThe owner invested personal equipment in the business. To record this
transaction, [removed]A. debit Equipment and credit Accounts Payable. [removed]B. debit
Accounts Payable and credit Equipment. [removed]C. debit Equipment and credit
Capital. [removed]D. credit Equipment and debit Capital. Question 4 of 200.0/ 5.0
PointsWhen an owner records a credit for $650 for revenue earned but not yet received, the
amount of the debit should be [removed]A. $325. [removed]B. $0. [removed]C.
$975. [removed]D. $650. Question 5 of 205.0/ 5.0 PointsWhich entry records the
investment of cash by John, owner of a sole proprietorship? [removed]A. Debit John, Capital;
credit Cash [removed]B. Debit Cash; credit John, Withdrawals [removed]C. Debit John,
Withdrawals; credit Cash [removed]D. Debit Cash; credit John, Capital Question 6 of 200.0/
5.0 PointsA debit increases the balance in all of the following accounts except for which
one? [removed]A. Cash [removed]B. Withdrawals [removed]C. Expenses [removed]D.
Accounts payable Question 7 of 205.0/ 5.0 PointsWhich statement about the rules of debit
and credit is true? [removed]A. If accounts receivable is decreased with a credit, the normal
balance is a credit. [removed]B. If accounts payable is increased with a credit, the normal
balance is a credit. [removed]C. If capital is increased with a debit, the normal balance is a
debit. [removed]D. If cash is decreased with a debit, the normal balance is a debit. Question
8 of 200.0/ 5.0 PointsOffice Supplies had a normal starting balance of $75. There were debit
postings of $80 and credit postings of $60 during the month. The ending balance is
a [removed]A. $55 debit. [removed]B. $55 credit. [removed]C. $95 debit. [removed]D. $95
credit. Question 9 of 200.0/ 5.0 PointsThe beginning balance in Cash was $3,500. Additional
cash of $2,000 was received. Checks were written totaling $2,500. The cash balance
is [removed]A. $2,000. [removed]B. $6,000. [removed]C. $4,500. [removed]D.
$3,000. Question 10 of 200.0/ 5.0 PointsWhich type of account has a normal credit
balance? [removed]A. Withdrawals [removed]B. Assets [removed]C. Expenses [removed]D.
Revenues Question 11 of 200.0/ 5.0 PointsA chart of accounts [removed]A. is set up in

2. alphabetical order. [removed]B. includes account balances. [removed]C. is a listing of all the
accounts used by a company. [removed]D. All of the above Question 12 of 205.0/ 5.0
PointsJim Walton performed services on credit for $2,450. A debit for this transaction
should be recorded to [removed]A. revenue. [removed]B. accounts receivable. [removed]C.
accounts payable. [removed]D. cash. Question 13 of 200.0/ 5.0 PointsAn account that would
be increased by a credit is [removed]A. cash. [removed]B. accounts receivable. [removed]C.
utilities expense. [removed]D. accounts payable. Question 14 of 200.0/ 5.0 PointsThe
business bought supplies on account. To record this transaction, [removed]A. an expense is
debited, and a liability is credited. [removed]B. an asset is debited, and an asset is
credited. [removed]C. an asset is debited, and a liability is credited. [removed]D. None of the
above Question 15 of 205.0/ 5.0 PointsA category that is not in the chart of accounts
is [removed]A. assets. [removed]B. liabilities. [removed]C. cash flows. [removed]D.
revenue. Question 16 of 200.0/ 5.0 PointsWhat would be the effect on accounts if the owner
withdrew cash? [removed]A. An asset would be debited, and an expense would be
credited. [removed]B. Withdrawals would be debited, and an asset would be
credited. [removed]C. An asset would be debited, and a revenue would be
credited. [removed]D. An asset would be debited, and Capital would be credited. Question
17 of 200.0/ 5.0 PointsThe owner of BobCats R Us paid his personal MasterCard bill using a
company check. What is the correct entry to record the transaction? [removed]A. Credit
Cash; debit Capital [removed]B. Credit Cash; debit Supplies Expense [removed]C. Credit
Cash; debit Withdrawals [removed]D. Credit Cash; debit Accounts Receivable Question 18 of
205.0/ 5.0 PointsOne asset would be debited and another would be credited if the
business [removed]A. provided services to a cash customer. [removed]B. paid a
creditor. [removed]C. bought supplies paying cash. [removed]D. provided services to a
credit customer. Question 19 of 200.0/ 5.0 PointsThe beginning balance in the Computers
account was $2,000. The company purchased an additional $1,000 worth of computers. The
balance in the account is a [removed]A. debit of $2,000. [removed]B. credit of
$3,000. [removed]C. debit of $3,000. [removed]D. credit of $2,000. Question 20 of 205.0/
5.0 PointsA debit balance is a normal balance for which type of account? [removed]A.
Accounts payable [removed]B. Revenue [removed]C. Accounts receivable [removed]D.
Owner’s capital