Accounting 1 Midterm

Which type of business does NOT provide physical goods to a customer?

• Goods business

• Service business

• Tangible business

Which of the following is NOT an example of a liability?

• Unearned service revenue

• Accounts receivable

• Accounts payable

Which of the following does a debit represent?

• An increase in any account

• The right side of the accounting equation

• The left side of the accounting equation

Which of the following refers to payments made by the business to help them earn value? "earn = earnings = sales"

• Expenses

• Revenue

• Cash

Which of the following is an example of a stockholder’s equity account?

• Retained earnings

• Cash

• Unearned revenue

Select all Asset accounts.

• Cash

• Accounts Payable

• Supplies

• Accounts Receivable

• Revenue

Select all Liability accounts.

• Unearned Service Revenue

• Cash

• Accounts Payable

• Notes Payable

• Expenses

Select all Owner's Equity accounts.

• Revenue

• Cash

• Owner's Capital

• Notes Payable

• Expenses

Which of the following indicates at least two accounts are affected by a transaction?

• Double-entry system

• Normal balance

• Debit

• Credit

Which of the following refers to the balance an account is always supposed to have?

• Normal balance

• Debit

• Credit

• Double Entry System