An increase to an asset account is conveyed by crediting the account.

True

False

Correct!

Review the section "Debits and Credits."

Every journal entry must contain at least one debit and one credit.

True

False

Correct!

Review the section "Debits and Credits."

The right side of a T-account is the credit side.

True

False

Correct!

Review the section "T-Accounts."

T-accounts display all activity over a period for a single account.

True

False

Correct!

Review the section "T-Accounts."

The debit side of every T-account is the normal balance side.

True

False

Correct!

Review the section "T-Accounts."

Journal entries in which cash is paid are recorded in the purchases journal.

True

False

Correct!

Review the section "General and Special Journals."

When using special journals, there’s no need to record transactions in the general journal.

True

False

Correct!

Review the section "General and Special Journals."

The abbreviation for debit is Dr.

True

False

Correct!

Review the section "General and Special Journals."

Control accounts are contained within subsidiary ledgers.

True

False

Correct!

Review the section "General and Subsidiary Ledgers."

The accounts payable subsidiary ledger contains individual T-accounts for each company from which a business has made purchases on account.

True

False

Correct!

Review the section "General and Subsidiary Ledgers."

A credit increases liability, capital, and revenue accounts.

Review the section "Debits and Credits."

Correct!

For which account is the debit side the normal balance side?

Accounts Payable

John Doe, Capital

Sales Revenue

Land

Correct!

Review the section "T-Accounts."

Which of these is NOT a special journal?

Cash payments journal

Revenue journal

Expenses journal

Purchases journal

Correct!

Review the section "General and Special Journals."

Which of these is a commonly used ledger?

Expenses ledger

Accounts receivable subsidiary ledger

Purchases ledger

Normal ledger

Correct!

Review the section "General and Subsidiary Ledgers."

What is a fixed asset?

An asset for which the balance does not change from one period to the next

An asset expected to be held for more than 12 months

An asset on which the company has incurred repair and maintenance expense

An asset the company no longer owns

Correct!

Review Case in Point 3-1, step #3.

You credited the Royalty Revenue account. What’s the impact?

Assets are decreased.

Liabilities are decreased.

Liabilities are increased.

Equity is increased.

Correct!

Review Case in Point 3-1, step #4.

You paid the monthly rent expense. What’s the impact?

The Rent Expense account is credited.

The Accounts Receivable account is debited.

The Cash account is credited.

The Accounts Payable account is credited.

Correct!

Review the section "Debits and Credits."

Samuel Williams invests cash in the business he owns. Which account is credited?

Service Revenue

Samuel Williams, Drawing

Samuel Williams, Capital

Cash

Correct!

Review the section "Debits and Credits."

Where is the credit in this journal entry?

Journal Entry with the following: Supplies 500, Selection A. Furniture 1,000, Selection B. Accounts Payable, 1,500, Selection C. Purchase of supplies and furniture on account, Selection D.

A

B

C

D

Correct!

Review the section "Debits and Credits."

What is posting?

Transferring the amounts in each journal entry to each account’s respective T-account

Transferring the amounts in each account’s respective T-account to each journal entry

Transferring the amounts in each account’s respective T-account to the appropriate financial statements

Transferring the amounts in each journal entry to the appropriate financial statements

Correct!

Review the section "T-Accounts."