1/15
decrease both assets and liabilities
decrease assets and increase liabilities
increase both assets and liabilities
2/15
A debit to an asset account indicates
an error.
a credit was made to a liability account.
a decrease in the asset
an increase in the asset
3/15
A credit is not the normal nature of the balance for which account listed below?
Capital account
Income account
Liability account
Drawings account
4/15
An accountant has debited the machinery account for $1,200 and credited the trade payable account for $500. What can be done to complete the recording of the transaction?
Nothing further must be done.
Debit another asset account for $700.
Credit the cash at bank account for $700
5/15
Credit sales of goods were made for $1,000. The double-entry for the
transactions is:
Debit Cash at Bank and Credit Sales Revenue for $1,000.
Debit Trade receivable and Credit Inventory for $1,000.
Debit Trade receivable and Credit Sales Revenue for $1,000
They can be abbreviated as Dr. and Cr.
They can be interpreted to mean increase and decrease.
They can be interpreted to mean left and right.
7/15
An account will have an ending credit balance if the
credits exceed the debits.
first transaction entered was a credit.
debits exceed the credits.
last transaction entered was a credit.
8/15
Quick Mail Service purchased equipment for $2,000. Quick Mail services paid $400 in cash and signed an agreement for the balance. Quick Mail Services debited the Equipment account, credited Cash in Hand account and
nothing further must be done.
debited the Capital account for $1,600.
credited another asset account for $400
credited a liability account for $1,600
9/15
An awareness of the nature of accounts would help you spot which of the following as an error in recording?
A credit entry in a liabilities account
10/15
When an owner makes a withdrawal
it doesn't have to be cash or cheque, it could be another asset.
11/15
13/15
The drawings account appears asan expense
on the Statement of financial performance income statement.
14/15
15/15
The double-entry system for recording transactions results in
equal debits and credits for each transaction.
