21. Which of the following accounts normally has a debit balance?
A. Prepaid insurance
B. Unearned service revenue
C. Accounts payable
D. Common Stock
22. Select the true statement (note: an answer may be true even if it does not identify all accounts that appear on that particular financial statement).
A. Account numbers 2, 4, and 5 will appear on the income statement.
B. Account numbers 1, 3, and 8 will appear on the balance sheet.
C. Account numbers 2, 5, and 8 will appear on the statement of cash flows.
D. Account numbers 4, 5, and 6 will appear on the statement of changes in equity.
23. Select the true statement (note: an answer may be true even if it does not identify all accounts that have debit balances on that particular financial statement).
A. Account numbers 1, 3, and 5 normally have debit balances.
B. Account numbers 2, 4, and 5 normally have debit balances.
C. Account numbers 2, 5, and 8 normally have debit balances.
D. Account numbers 4, 5, and 6 normally have debit balances.
25. The right side of a T-account is known as the
A. Credit side.
B. Claims side.
C. Debit side.
D. Equity side
26. The difference between the debit and credit side of a T-account is known as the
A. Net income.
B. Trial balance.
C. Equality.
D. Account balance.
27. A debit entry
A. increases assets.
B. increases expenses.
C. decreases liabilities.
D. increases assets, expenses, and liabilities.
28. Warren Company began the accounting period with a $32,000 debit balance in its accounts receivable account. During the accounting period, the company recorded revenue on account amounting to $88,000. The accounts receivable account at the end of the accounting period contained a $16,000 debit balance. Based on this information, the cash collected from accounts receivable during the period is
A. $104,000
B. $40,000
C. $72,000
D. $84,000
29. Benson Co. purchased land and paid the full purchase price in cash. The journal entry necessary to record this event includes a:
A. debit to Land and a debit to Cash.
B. debit to Cash and a credit to Land.
C. credit to Land and a credit to Cash.
D. debit to Land and a credit to Cash.
30. Credit entries
A. decrease liability accounts.
B. increase asset accounts.
C. increase the common stock account.
D. increase asset and common stock accounts, and decrease liability accounts.