1/15
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
decrease both assets and liabilities
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
decrease assets and increase liabilities
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
increase both assets and liabilities
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
2/15
A debit to an asset account indicates
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
an error.
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
a credit was made to a liability account.
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
a decrease in the asset
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
an increase in the asset
3/15
A credit is not the normal nature of the balance for which account listed below?
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
Capital account
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
Income account
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
Liability account
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
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?
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
Nothing further must be done.
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
Debit another asset account for $700.
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
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:
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
Debit Cash at Bank and Credit Sales Revenue for $1,000.
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
Debit Trade receivable and Credit Inventory for $1,000.
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
Debit Trade receivable and Credit Sales Revenue for $1,000
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
They can be abbreviated as Dr. and Cr.
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
They can be interpreted to mean increase and decrease.
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
They can be interpreted to mean left and right.
7/15
An account will have an ending credit balance if the
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
credits exceed the debits.
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
first transaction entered was a credit.
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
debits exceed the credits.
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
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
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
nothing further must be done.
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
debited the Capital account for $1,600.
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
credited another asset account for $400
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
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?
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
A credit entry in a liabilities account
10/15
When an owner makes a withdrawal
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
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.