Question 1

On 1 August XYZ Ltd issued $240 000 shares to shareholders in exchange for cash of $100 000 and land of $140 000. This transaction would be recorded in the general ledger as:

Accepted Answer

A)   a debit to cash and land and a credit to share capital.
B)   a credit to cash and land and a debit to share capital.
C)   an increase to cash and land and a decrease to share capital.
D)   a decrease to cash, and an increase to land and share capital.E) A) and B)
F) C) and D)

Question 2

An accounting journal is a book of original entry that is prepared to record transactions in chronological order.

Accepted Answer

A) True 
 B)False

Question 3

Discuss the role that journals, the ledger, debits and credits and the trial balance play in the traditional approach to recording transactions (events).

Accepted Answer

The journals and ledger play an importan...

Question 4

The balance sheet lists final account balances for which of the following elements of financial statements?

Accepted Answer

A)   Assets and liabilities
B)   Income and expenses
C)   Assets, liabilities and owners' equity
D)   Income, expenses and profit and lossE) A) and B)
F) B) and C)

Question 5

Income and expenses affect the profits made by an entity. Which of the following statements best describes how this fact is consistent with the accounting equation and the debit and credit rule?

Accepted Answer

A)   Income increases equity and so should be a debit and expenses decrease equity and so should be a credit.
B)   Income increases equity and so should be a credit and expenses decrease equity and so should be a debit.
C)   Income decreases equity and so should be a debit and expenses increase equity and so should be a credit.
D)   Income and expenses both affect equity and so both should be a credit if they are increasing.E) C) and D)
F) A) and D)

Question 6

Which of the following accounts normally has a debit balance?

Accepted Answer

A)   Liabilities
B)   Owners' equity
C)   Revenues
D)   ExpensesE) None of the above
F) B) and D)

Question 7

The owner of an entity pays cash into the company's cash at bank account. The effect of this is to record an increase to cash on the left-hand side of the worksheet and an increase to equity on the right-hand side of the worksheet. This is the same as recording a debit on the left-hand side of the T account Cash at Bank and a credit on the right-hand side of the T account Owners' Equity.

Accepted Answer

A) True 
 B)False

Exam 11: Worksheet to Debits and Credits

Discuss the role that journals, the ledger, debits and credits and the trial balance play in the traditional approach to recording transactions (events).

Correct Answer
verified
The journals and ledger play an importan...
View Answer

Income and expenses affect the profits made by an entity. Which of the following statements best describes how this fact is consistent with the accounting equation and the debit and credit rule?

Correct Answer
verified

Correct Answer
verified

Which of the following accounts normally has a debit balance?

Correct Answer
verified

An accounting journal is a book of original entry that is prepared to record transactions in chronological order.

Correct Answer
verified

The balance sheet lists final account balances for which of the following elements of financial statements?

Correct Answer
verified

On 1 August XYZ Ltd issued $240 000 shares to shareholders in exchange for cash of $100 000 and land of $140 000. This transaction would be recorded in the general ledger as:

Correct Answer
verified

Exam 11: Worksheet to Debits and Credits

Discuss the role that journals, the ledger, debits and credits and the trial balance play in the traditional approach to recording transactions (events).

Correct AnswerverifiedThe journals and ledger play an importan...View AnswerShow Answer

Income and expenses affect the profits made by an entity. Which of the following statements best describes how this fact is consistent with the accounting equation and the debit and credit rule?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following accounts normally has a debit balance?

Correct AnswerverifiedShow Answer

An accounting journal is a book of original entry that is prepared to record transactions in chronological order.

Correct AnswerverifiedShow Answer

The balance sheet lists final account balances for which of the following elements of financial statements?

Correct AnswerverifiedShow Answer

On 1 August XYZ Ltd issued $240 000 shares to shareholders in exchange for cash of $100 000 and land of $140 000. This transaction would be recorded in the general ledger as:

Correct AnswerverifiedShow Answer

Correct Answer
verified
The journals and ledger play an importan...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified