Question

31) A business uses a credit to record: A) An increase in an expense account. B) A decrease in an asset account. C) A decrease in an unearned revenue account. D) A decrease in a revenue account. E) A decrease in a capital account. 32) Identify the statement below that is correct: A) The left side of a T-account is the credit side. B) Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts. C) The left side of a T-account is the debit side. D) Credits increase asset and expense accounts, and decrease liability, equity, and revenue accounts. E) The total amount debited need not equal the total amount credited for a particular transaction. 33) Edison Consulting received a $300 utilities bill and immediately paid it. Edison's general journal entry to record this transaction will include a: A) Debit to Utilities Expense for $300. B) Credit to Accounts Payable for $300. C) Debit to Cash for $300. D) Credit to Utilities Expense for $300. E) Debit to Accounts Payable for $300. 34) GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $60,000 for 6-months services in advance. GreenLawn's general journal entry to record this transaction will include a: A) Debit to Unearned Revenue for $60,000. B) Credit to Accounts Receivable for $60,000. C) Credit to Cash for $60,000. D) Credit to Unearned Revenue for $60,000. E) Debit to Accounts Receivable for $60,000. 35) A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years is the: A) Operating cycle of a business. B) Time period assumption. C) Going-concern assumption. D) Expense recognition (matching) principle. E) Accrual basis of accounting.

Answer 1

Question 31

Correct answer-------------(B) A decrease in an asset account.

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Asset account have debit balance hence they are increased with debit and decrease with a credit.

Question 32

Correct answer-------------(C) The left side of the T-account is the debit side..

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The debit side needs to total credit side and vice versa. All assets and espense increase by debit and all recenue increase by credit.

Question 33

Correct answer-------------(A) Debit to utility expense $300

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Utility expense will be debited for $300 and cash will be credited for $300

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Question 34

Correct answer-------------(D) Creit to unearned revenue for $60,000.

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Unearned revenue is revenue that has not been earned but received from customer in advance.