CHAPTER 2. ACCOUNTING FOR BUSINESS
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i. Brown company paid its employee his weekly wages $400. Show how to record the
transaction to the T-accounts by completing the following sentence. The wages
expensive account would be (debited/credited) on the (left/right) side of the T-
account, and the Cash account would be (debited/credited) on the (left/right) side of
the T-account.
ii. Which statement is correct regarding entering transactions into the accounting equation?
iii. Butter Company purchased $300 of supplies for cash, illustrate how to record the
transaction into T- accounts by completing the following sentence.
iv. The Supplies account would be (debited/credited) on the (left\right) side of the T-
account and
the Cash account would be (debited/credited) on the (left/right) side of the T-account.
v. Smith Company purchased $8,000 of supplies on credit. Show how to record this
transaction to the T-account by selecting the correct answer below. Enter $8,000 on the
lef t side of the Supplies account; enter $8,000 on the right side of the Account payable
account.
vi. Select the statements that are true regarding debiting and crediting. (Check all that
apply.) A
credit will always decrease an asset account. A debit can increase an expense account.
For an account where a debit is an increase, the credit is a decrease. A debit or a credit
can increase or decrease an account, depending on the account.
vii. Match the items on the left with their definition on the right.
Assets = Things of value owned by the business.
, CHAPTER 2. ACCOUNTING FOR BUSINESS
TRANSACTIONS WITH ANSWERS 100% CORRECT STUDY GUIDE,
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Equity = The residual interest in the assets of a business after deducting the
business’s
debts.
Revenues = The dollars earned because of services performed or products sold.
Liabilities = The obligation owed by the business to creditors.
viii. Which of the following statements about the dividends account is (are) correct?
(Check all that apply.) dividends are increased on the lef t side of the T-account.
Dividends is used to record distribution of assets to the owner of a business.
Dividends decrease equity.
ix. Which of the following statements about revenues is correct? Revenues cause equity to
increase, and they are increased on the right side of the T-account.
x. When entering a transaction into a general journal, the entry would be dated; then the
accounts (debited/credited) would be listed first; then the accounts (debited/ credited)
would be listed next; and finally, a(n) explanation would be included to show the details
of the transaction.
xi. J. Jackson invested $1,00 in his business in exchange for common stock. Show how
accounts to
record this transaction by selecting the correct answer below.
xii. The account title is shown at the top of a T-account is called the debit side, and the
right side is called the credit side.
xiii. Which of the following accounts impact equity? (Check all that apply.) revenue,
common stock, dividends, expenses.
xiv. When the stockholders receive a dividend, how would this affect the equity of a
business? Assets are decreased, and equity is decreased.
xv. Which of the following account are examples of revenue? (Check all that apply.)
Sales, Fees earned, Service revenue.
xvi. The stockholders of a business received a $1000 dividend. How would this affect the
, CHAPTER 2. ACCOUNTING FOR BUSINESS
TRANSACTIONS WITH ANSWERS 100% CORRECT STUDY GUIDE,
DOWNLOAD TO SCORE A
tool equity of the business?
xvii. From the following lists of accounts, choose the list(s) which contain only expense
accounts. Rent expense, wages expense, insurance expense.
TRANSACTIONS WITH ANSWERS 100% CORRECT STUDY GUIDE,
DOWNLOAD TO SCORE A
i. Brown company paid its employee his weekly wages $400. Show how to record the
transaction to the T-accounts by completing the following sentence. The wages
expensive account would be (debited/credited) on the (left/right) side of the T-
account, and the Cash account would be (debited/credited) on the (left/right) side of
the T-account.
ii. Which statement is correct regarding entering transactions into the accounting equation?
iii. Butter Company purchased $300 of supplies for cash, illustrate how to record the
transaction into T- accounts by completing the following sentence.
iv. The Supplies account would be (debited/credited) on the (left\right) side of the T-
account and
the Cash account would be (debited/credited) on the (left/right) side of the T-account.
v. Smith Company purchased $8,000 of supplies on credit. Show how to record this
transaction to the T-account by selecting the correct answer below. Enter $8,000 on the
lef t side of the Supplies account; enter $8,000 on the right side of the Account payable
account.
vi. Select the statements that are true regarding debiting and crediting. (Check all that
apply.) A
credit will always decrease an asset account. A debit can increase an expense account.
For an account where a debit is an increase, the credit is a decrease. A debit or a credit
can increase or decrease an account, depending on the account.
vii. Match the items on the left with their definition on the right.
Assets = Things of value owned by the business.
, CHAPTER 2. ACCOUNTING FOR BUSINESS
TRANSACTIONS WITH ANSWERS 100% CORRECT STUDY GUIDE,
DOWNLOAD TO SCORE A
Equity = The residual interest in the assets of a business after deducting the
business’s
debts.
Revenues = The dollars earned because of services performed or products sold.
Liabilities = The obligation owed by the business to creditors.
viii. Which of the following statements about the dividends account is (are) correct?
(Check all that apply.) dividends are increased on the lef t side of the T-account.
Dividends is used to record distribution of assets to the owner of a business.
Dividends decrease equity.
ix. Which of the following statements about revenues is correct? Revenues cause equity to
increase, and they are increased on the right side of the T-account.
x. When entering a transaction into a general journal, the entry would be dated; then the
accounts (debited/credited) would be listed first; then the accounts (debited/ credited)
would be listed next; and finally, a(n) explanation would be included to show the details
of the transaction.
xi. J. Jackson invested $1,00 in his business in exchange for common stock. Show how
accounts to
record this transaction by selecting the correct answer below.
xii. The account title is shown at the top of a T-account is called the debit side, and the
right side is called the credit side.
xiii. Which of the following accounts impact equity? (Check all that apply.) revenue,
common stock, dividends, expenses.
xiv. When the stockholders receive a dividend, how would this affect the equity of a
business? Assets are decreased, and equity is decreased.
xv. Which of the following account are examples of revenue? (Check all that apply.)
Sales, Fees earned, Service revenue.
xvi. The stockholders of a business received a $1000 dividend. How would this affect the
, CHAPTER 2. ACCOUNTING FOR BUSINESS
TRANSACTIONS WITH ANSWERS 100% CORRECT STUDY GUIDE,
DOWNLOAD TO SCORE A
tool equity of the business?
xvii. From the following lists of accounts, choose the list(s) which contain only expense
accounts. Rent expense, wages expense, insurance expense.
