51) What would be the effect on accounts if the business provided services to a customer on account?

A) An asset would be debited and an expense credited.

B) Capital would be debited and revenue credited.

C) An asset would be debited and revenue credited.

D) An asset would be debited and Capital credited.

52) What would be the effect on accounts if the business provided services to a customer collecting cash?

A) An asset would be debited and an expense credited.

B) Capital would be debited and revenue credited.

C) An asset would be debited and revenue credited.

D) An asset would be debited and Capital credited.

 

53) What would be the effect on accounts if the owner withdrew cash?

A) An asset would be debited and an expense credited.

B) Withdrawals would be debited and an asset credited.

C) An asset would be debited and a revenue credited.

D) An asset would be debited and Capital credited.

 

54) What would be the effect on accounts if the business purchased office supplies for cash?

A) An asset would be debited and an expense credited.

B) Capital would be debited and revenue credited.

C) An asset would be debited and revenue credited.

D) An asset would be debited and an asset credited.

 

55) What would be the effect on accounts if the business received the telephone bill but did not pay it immediately.

A) An expense would be debited and a liability credited.

B) Capital would be debited and revenue credited.

C) An expense would be debited and an asset credited.

D) An asset would be debited and Capital credited.

56) An account that would be increased by a debit is:

A) Cash.

B) Fees Earned.

C) Capital.

D) Accounts Payable.

 

57) Which of the following groups of accounts have a normal credit balance?

A) Revenue, liabilities, and capital

B) Assets, capital, and withdrawals

C) Liabilities, expenses, and assets

D) Assets, expenses, and withdrawals

 

58) Cash is debited when the business makes a payment for supplies.

 

59) Debits must always equal credits.

 

60) The debit side of all accounts decreases the balance and the credit side increases all accounts.

 

 

 



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