2 1 learning objective 2 1 1 accounts payable had a normal starting balance of 500 t 4303420

 

2.1   Learning Objective 2-1

 

1) Accounts Payable had a normal starting balance of $500. There were debit postings of $200 and credit postings of $100 during the month. The ending balance is:

A) $400 credit.

B) $800 debit.

C) $400 debit.

D) $800 credit.

2) The beginning balance in the Computers account was $3,000. The company purchased an additional $1000 worth of computers. The ending balance in the account is:

A) debit of $2,000.

B) credit of $3,000.

C) debit of $4,000.

D) credit of $2,000.

3) An accounting device used to record increases and decreases in individual assets, liabilities, capital, revenue, expenses, and withdrawals is a(n):

A) chart of accounts.

B) account.

C) trial balance.

D) footing.

4) A formal account that has columns for date, explanation, posting reference, debit, and credit is called the:

A) T account.

B) standard account form.

C) ledger.

D) chart of accounts.

5) A ledger:

A) includes all company accounts and their balances.

B) can replace the financial statements.

C) is the same as a chart of accounts.

D) is known as a worksheet.

6) The left side of any account is the:

A) debit side.

B) credit side.

C) ending balance.

D) beginning balance.

7) The right side of any account is the:

A) debit side.

B) credit side.

C) ending balance.

D) beginning balance.

8) An account is said to have a debit balance if:

A) the footing of the debits exceeds the footing of the credits.

B) there are more entries on the debit side than on the credit side.

C) its normal balance is debit without regard to the amounts or number of entries on the debit side.

D) the last entry of the accounting period was posted on the debit side.

9) The ledger is:

A) a group of accounts that records data from business transactions.

B) a tool used to insure that all accounts have normal balances.

C) a chronological record of the day's transactions.

D) a tool used to ensure that debits equal credits.

10) The credit side is always the left side of the account.

11) A T account is used for demonstration purposes.

12) Explain the difference between expenses and withdrawals.