1. What affect does the following transaction have on the accounting records?

Debit Supplies Expense

Credit Supplies

Increase income

Decrease net income

Decrease expense

Increase an asset

2. What affect will this entry have on the accounting records?

Debit Accounts Payable

Credit Cash

decrease accounts payable; increase cash

increase accounts payable; increase cash

increase accounts payable; increase cash

decrease accounts payable; decrease cash

3. Proof that the dollar amount of the debits equals the dollar amount of the credits in the ledger means

all of the information from the journal was correctly transferred to the ledger

all accounts have their correct balances in the ledger

only the journal is accurate, the ledger may be incorrect

is seen on the trial balance and only indicates that the debit dollar amount equals the credit dollar amounts.

4. Smith, Inc. earned revenue on account. Choose the correct journal entry.

Debit cash; credit fees earned

Debit fees earned; credit cash

Debit Accounts Receivable; credit fees earned

Debit fees earned; credit accounts receivable

5. Which of the following are considered temporary accounts?

revenues, expenses, and drawing

assets, liabilities, owner's equity

assets and expenses

owner's equity and assets

6. Determine the adjusting journal entry for the following scenario: $1,000 supplies are purchased January 1. On January 31, it is determined that $600 supplies are remaining.

Debit supplies $600; credit cash $600

Debit supplies expense $600; credit supplies $600

Debit supplies expense $400; credit supplies $400

Debit supplies $400; credit supplies expense $400

7. Randomly listed below are the steps to preparing a Trial Balance:

1. Verify that the total of the debit and credit columns equals

2. List the accounts from the ledger and enter their debit or credit balance in the debit or credit column of the Trial Balance.

3. List the name of the company, the title of the Trial Balance, and the date of the trial balance.

4. Total the debit and credit column of the trial balance

What is the proper order of the steps?

3 2 4 1

2 3 4 1

3 2 1 4

4 3 2 1

8. Prepaid insurance is a(n)

asset

liability

expense

revenue

9. In which of the following types of accounts are decreases recorded by credits:

liabilities

expenses

owner's equity

liabilities

10. The post-closing trial balance should be completed:

before the closing entries are posted

after the closing entries are posted

before the adjusting journal entries are posted

None of the above

11. Debiting the cash account will:

increase the cash account

Decrease the cash account