FPC Chapter 6 Questions & Answers
Which of the following transactions is posted as a debit?
A. Decrease in an expense account
B. $1,000.00 lease payment for payroll software, posted to the expense account
C. Increase in a liability account
D. Payroll tax liability of $55,000.00 not deposited...
FPC Chapter 6 Questions & Answers
Which of the following transactions is posted as a debit?
A. Decrease in an expense account
B. $1,000.00 lease payment for payroll software, posted to the expense account
C. Increase in a liability account
D. Payroll tax liability of $55,000.00 not deposited, posted to the liability account -
answer B. $1,000.00 lease payment for payroll software, posted to the expense
account
***Whether you post a transaction as a debit or credit depends on the type of account***
Acct Type Norm Bal Debit Credit
Asset Debit Increase Decrease
Liabilities Credit Decrease Increase
Equity/Capital/Networth Credit Decrease Increase
Income/Revenue Credit Decrease Increase
Expenses Debit Increase Decrease
A journal is:
A. a chronological record of daily transactions.
B. the last place transactions are recorded.
C. a summary of transactions by date.
D. a record of transactions by account. - answer A. a chronological record of daily
transactions.
***A journal is a chronological record of the daily transactions of a business.***
What document is matched correctly with its use?
A. Balance sheet--Record of business transactions by account
B. Financial statements--Journal and general ledger
C. General ledger--Chronological recording of daily business transactions
D. Journal--First posting of data about a transaction - answer D. Journal--First
posting of data about a transaction
*** Information about each transaction is first entered in a journal entry.***
,Which of the following transactions is posted as a debit?
A. A decrease in a liability account
B. A decrease in an expense account
C. An increase in a liability account
D. A decrease in an asset account - answer A. A decrease in a liability account
***Whether you post a transaction as a debit or credit depends on the type of account***
Acct Type Norm Bal Debit Credit
Asset Debit Increase Decrease
Liabilities Credit Decrease Increase
Equity/Capital/Networth Credit Decrease Increase
Income/Revenue Credit Decrease Increase
Expenses Debit Increase Decrease
Which of the following journal entries is posted as a debit?
A. $8,000.00 purchase of W-2 forms, posted to expense account
B. $45,000.00 payroll checks issued to employees, posted to the payroll checking
account
C. $8,000.00 manual check, posted to the asset account
D. $6,000.00 deducted for medical insurance premiums, posted to the liability account -
answer A. $8,000.00 purchase of W-2 forms, posted to expense account
***Whether you post a transaction as a debit or credit depends on the type of account***
Acct Type Norm Bal Debit Credit
Asset Debit Increase Decrease
Liabilities Credit Decrease Increase
Equity/Capital/Networth Credit Decrease Increase
Income/Revenue Credit Decrease Increase
Expenses Debit Increase Decrease
What document is matched correctly with its use?
, A. General ledger--Chronological recording of daily business transactions
B. Cash flow statement--Report of company's net income
C. Income statement--Record of company's assets, liabilities, and net worth
D. Chart of accounts--Listing of all accounts by name and number - answer D. Chart
of accounts--Listing of all accounts by name and number
***In most companies, a chart of accounts lists each account by a name and an
identification number. ***
An accounting document containing records of all business transactions by account is
defined as a(n):
A. general ledger.
B. chart of accounts.
C. journal.
D. income statement. - answer A. general ledger.
***The general ledger is a record of business transactions posted to each account from
the journal entries.***
Which account is identified correctly?
A. Furniture owned by the company--Liability
B. Cash--Asset
C. Money in a checking account--Expense
D. Taxes withheld but not yet deposited--Asset - answer B. Cash--Asset
***Asset accounts:***
Cash: 110
A general ledger is:
A. a record of transactions by account.
B. a summary of transactions by date.
C. a chronological record of daily transactions.
D. the first place transactions are recorded. - answer A. a record of transactions by
account.
***The general ledger is a record of business transactions posted to each account from
the journal entries.***
What transaction is posted as a debit?
A. $6,000.00 liability for medical insurance premiums withheld from employees' wages
but not yet paid to provider, posted to the liability account
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