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20. A simple account form widely used in accounting as a tool to understand how debits and credits affect an account balance is called a: A. Withdrawals account. B. Capital account C. Drawing account. D. T-account. E. Balance column sheet. 21. Which of the following statements is correct? A. The left side of a T-account is the credit side. B. Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts. C. The left side of a T-account is the debit side. D. Credits increase asset and expense accounts, and decrease liability, equity, and revenue accounts. E. In certain circumstances the total amount debited need not equal the total amount credited for a particular transaction. 22. 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. 23. Of the following accounts, the one that normally has a credit balance is: A. Cash. B. Office Equipment C. Wages Payable. D. Owner, Withdrawals. E. Sales Salaries Expense. 24. 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 an owner's capital account. E. An increase in the balance of the owner's withdrawals account. 25. A credit entry: A. Increases asset and expense accounts, and decreases liability, owner's capital, and revenue accounts. B. Is always a decrease in an account. C. Decreases asset and expense accounts, and increases liability, owner's capital, and revenue accounts. D. Is recorded on the left side of a T-account. E. Is always an increase in an account. 26. 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 each transaction affects and is recorded in two or more accounts but that could include two debits and no credits. D. That may only be used if T-accounts are used. E. That insures that errors never occur. 27. Rocky Industries received its telephone bill in the amount of RM300.00, and immediately paid it. Rocky's general journal entry to record this transaction will include a: A. Debit to Telephone Expense for RM300.00. B. Credit to Accounts Payable for RM300.00. C. Debit to Cash for RM300.00. D. Credit to Telephone Expense for RM300.00. E. Debit to Accounts Payable for RM300.00 28. Management Services, Inc. provides services to clients. On May 1, a client prepaid Management Services RM60,000.00 for 6-months services in advance. Management Services' general journal entry to record this transaction will include a: A. Debit to Unearned Management Fees for RM60,000.00 B. Credit to Management Fees Eamed for RM60,000.00 C. Credit to Cash for RM60,000.00 D. Credit to Unearned Management Fees for RM60,000.00 E. Debit to Management Fees Earned for RM60,000.00. 29. Tanjong Malim Rentals (TMR) purchased office supplies on credit. The general journal entry made by TMR will include a: A. Debit to Accounts Payable. B. Debit to Accounts Receivable. C. Credit to Cash. D. Credit to Accounts Payable. E. Credit to Wisconsin Rentals, Capital
