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38. The left side of an account is a. blank. b. a description of the account. c. the debit side. d. the balance of the account.

39. Which one of the following is not a part of an account? a. Credit side b. Trial balance c. Debit side d. Title

40. An account is a part of the financial information system and is described by all except which one of the following? a. An account has a debit and credit side. b. An account is a source document. c. An account may be part of a manual or a computerized accounting system. d. An account has a title.

41. The right side of an account a. is the correct side. b. reflects all transactions for the accounting period. c. shows all the balances of the accounts in the system. d. is the credit side.

42. An account consists of a. a title, a debit balance, and a credit balance. b. a title, a left side, and a debit balance. c. a title, a debit side, and a credit side. d. a title, a right side, and a debit balance.

43. A T-account is a. a way of depicting the basic form of an account. b. what the computer uses to organize bytes of information. c. a special account used instead of a trial balance. d. used for accounts that have both a debit and credit balance.

44. A debit to an asset account indicates a. an error. b. a credit was made to a liability account. c. a decrease in the asset. d. an increase in the asset.

45. The normal balance of any account is the a. left side. b. right side. c. side which increases that account. d. side which decreases that account.

46. The double-entry system requires that each transaction must be recorded a. in at least two different accounts. b. in two sets of books. c. in a journal and in a ledger. d. first as a revenue and then as an expense.

47. A credit is not the normal balance for which account listed below? a. Capital account b. Revenue account c. Liability account d. Drawing account

48. Which one of the following represents the expanded basic accounting equation? a. Assets = Liabilities + Owner's Capital + Owner's Drawings – Revenue – Expenses. b. Assets + Owner's Drawings + Expenses = Liabilities + Owner's Capital + Revenues. c. Assets – Liabilities – Owner's Drawings = Owner's Capital + Revenues – Expenses. d. Assets = Revenues + Expenses – Liabilities.

49. Which of the following correctly identifies normal balances of accounts? a. Assets Debit Liabilities Credit Owner's Equity Credit Revenues Debit Expenses Credit

b. Assets Debit Liabilities Credit Owner's Equity Credit Revenues Credit Expenses Credit

c. Assets Credit Liabilities Debit Owner's Equity Debit Revenues Credit Expenses Debit

d. Assets Debit Liabilities Credit Owner's Equity Credit Revenues Credit Expenses Debit

50. The best interpretation of the word credit is the a. offset side of an account. b. increase side of an account. c. right side of an account. d. decrease side of an account.

51. In recording an accounting transaction in a double-entry system a. the number of debit accounts must equal the number of credit accounts. b. there must always be entries made on both sides of the accounting equation. c. the amount of the debits must equal the amount of the credits. d. there must only be two accounts affected by any transaction. 52. An accounting convention is best described as a. an absolute truth. b. an accounting custom. c. an optional rule. d. something that cannot be changed.

53. A debit is not the normal balance for which account listed below? a. Drawing b. Cash c. Accounts Receivable d. Service Revenue

54. An accountant has debited an asset account for $1,000 and credited a liability account for $500. What can be done to complete the recording of the transaction? a. Nothing further must be done. b. Debit an owner's equity account for $500. c. Debit another asset account for $500. d. Credit a different asset account for $500.

55. An accountant has debited an asset account for $1,000 and credited a liability account for $500. Which of the following would be an incorrect way to complete the recording of the transaction? a. Credit an asset account for $500. b. Credit another liability account for $500. c. Credit an owner's equity account for $500. d. Debit an owner's equity account for $500.

56. Which of the following is not true of the terms debit and credit? a. They can be abbreviated as Dr. and Cr. b. They can be interpreted to mean increase and decrease. c. They can be used to describe the balance of an account. d. They can be interpreted to mean left and right.

57. An account will have a credit balance if the a. credits exceed the debits. b. first transaction entered was a credit. c. debits exceed the credits. d. last transaction entered was a credit.

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