Question 1

A debit to a liability account was posted to a revenue account. This error would cause:

Accepted Answer

A)  revenues to be understated.
B)  liabilities to be understated.
C)  capital to be overstated.
D)  None of the above are correct.E) All of the above
F) B) and C)

Question 2

Which of the following groups of accounts have a normal debit balance?

Accepted Answer

A)  Revenue, liabilities, and capital
B)  Assets, capital, and withdrawals
C)  Liabilities, expenses, and assets
D)  Assets, expenses, and withdrawalsE) A) and D)
F) B) and C)

Question 3

The Accounts Receivable account is increased by a debit.

Accepted Answer

A) True 
 B)False

Question 4

The business provided services to a cash customer. To record this:

Accepted Answer

A)  an asset is debited and a liability is credited.
B)  an asset is debited and a revenue is credited.
C)  an expense is debited and Capital is credited.
D)  None of these are correct.E) A) and B)
F) A) and C)

Question 5

The debit side is always the right side of the account.

Accepted Answer

A) True 
 B)False

Exam 2: Debits and Credits: Analyzing and Recording Business Transactions

The business provided services to a cash customer. To record this:

Correct Answer
verified

The Accounts Receivable account is increased by a debit.

Correct Answer
verified

The debit side is always the right side of the account.

Correct Answer
verified

Which of the following groups of accounts have a normal debit balance?

Correct Answer
verified

A debit to a liability account was posted to a revenue account. This error would cause:

Correct Answer
verified

Exam 2: Debits and Credits: Analyzing and Recording Business Transactions

The business provided services to a cash customer. To record this:

Correct AnswerverifiedShow Answer

The Accounts Receivable account is increased by a debit.

Correct AnswerverifiedShow Answer

The debit side is always the right side of the account.

Correct AnswerverifiedShow Answer

Which of the following groups of accounts have a normal debit balance?

Correct AnswerverifiedShow Answer

A debit to a liability account was posted to a revenue account. This error would cause:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified