11) A debit may signify a(n):

A) increase in asset accounts.

B) increase in liability accounts.

C) increase in the capital account.

D) decrease in expense accounts.

12) A credit may signify a(n):

A) increase in assets.

B) decrease in liabilities.

C) increase in capital.

D) increase in withdrawals.

 

13) Which of the following types of accounts has a normal credit balance?

A) Withdrawals

B) Assets

C) Expenses

D) Revenues

 

14) Which of the following types of accounts has a normal debit balance?

A) Withdrawals

B) Assets

C) Expenses

D) All of these answers are correct.

 

15) When recording transactions in two or more accounts and the totals of the debits and credits are equal, it is called:

A) debiting.

B) crediting.

C) posting.

D) double-entry bookkeeping.

16) Which of the following groups of accounts have a normal debit balance?

A) Revenue, liabilities, and capital

B) Assets, capital, and withdrawals

C) Liabilities, expenses, and assets

D) Assets, expenses, and withdrawals

 

17) The ledger is:

A) a group of accounts that records data from business transactions.

B) a tool used to make sure that all accounts have normal balances.

C) a chronological record of the day’s transactions.

D) a tool used to ensure that debits equal credits.

 

18) Which of the following accounts would be increased by a debit?

A) Cash

B) Accounts Payable

C) Capital

D) Fees Earned

 

19) What is the proper entry to show the owner making an investment in the company?

A) A credit to Cash and a debit to Capital

B) A debit to Cash and a credit to Capital

C) A debit to Cash and a credit to Revenue

D) A credit to Cash and a debit to Revenue

20) Which of the following entries would be used to record the billing of fees earned?

A) Debit Accounts Receivable and credit Rental Fees

B) Credit Cash and credit Rental Fees

C) Debit Cash and credit Rental Fees

D) Debit Cash and debit Rental Fees

 

 

 



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