College Accounting,
14e (Slater)
Chapter 2 Debits and Credits: Analyzing and Recording
Business Transactions
2.1 Learning Objective 2-1
1) Accounts Payable had a normal starting balance of $900.
There were debit postings of $100 and credit postings of $450 during the month.
The ending balance is:
A) $1,250 credit.
B) $1,450 debit.
C) $1,250 debit.
D) $1,450 credit.
Answer: A
Explanation: ($900 -
$100) + $450 = $1,250
Diff: 2
LO: 2-1
AACSB: Analytical Thinking
Learning Outcome: Analyze and record transactions and their
effects on the financial statements
2) The beginning balance in the Equipment account was
$4,000. The company purchased an additional $1,000 worth of Equipment. The
ending balance in the account is:
A) debit of $3,000.
B) credit of $4,000.
C) debit of $5,000.
D) credit of $3,000.
Answer: C
Explanation: $4,000
+ $1,000 = $5,000
Diff: 1
LO: 2-1
AACSB: Analytical Thinking
Learning Outcome: Analyze and record transactions and their
effects on the financial statements
3) An accounting tool used to record increases and
decreases in individual Assets, Liabilities, Capital, Revenue, Expenses, and
Owner's Drawing is a(n):
A) chart of accounts.
B) account.
C) trial balance.
D) footing.
Answer: B
Diff: 2
LO: 2-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts
and principles
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.
Answer: B
Diff: 2
LO: 2-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts
and principles
5) A ledger:
A) includes all company accounts and their related
balances.
B) can replace the financial statements.
C) is the same as a chart of accounts.
D) is known as a worksheet.
Answer: A
Diff: 1
LO: 2-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts
and principles
6) The right side of any account is the:
A) debit side.
B) credit side.
C) ending balance.
D) beginning balance.
Answer: B
Diff: 1
LO: 2-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts
and principles
7) The left side of any account is the:
A) debit side.
B) credit side.
C) ending balance.
D) beginning balance.
Answer: A
Diff: 1
LO: 2-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts
and principles
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.
Answer: A
Diff: 2
LO: 2-1
AACSB: Analytical Thinking
Learning Outcome: Define accounting terms, accounting concepts
and principles
9) The ledger is:
A) a group of accounts that records results from business transactions.
B) a tool used to ensure 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.
Answer: A
Diff: 1
LO: 2-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts
and principles
10) The credit side is always the left side of the account.
Answer: FALSE
Diff: 1
LO: 2-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts
and principles
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