10ACC Fundamentals

When an account increases, it keeps the same nature

• True

• False

Liabilities have a _______ nature

• credit

• debit

Debits are good, credits are bad

• True

• False

Which of the following are true for the Cash at Bank a/c?

• Also called Cash

• Also called Credit

• Also called CAB

• Is an asset

• Is a credit when increasing

Which of the following are expenses?

• Telephone bill

• Rent expense

• Rent revenue

• Postage

• Sales

Expenses have a _______ nature

• credit

• debit

Which of the following are liabilities?

• Bank a/c

• Loan from bank

• Mortgage

• Account payable

• Account receivable

Owner's Equity has a _______ nature, but Drawings has a _______ nature

• credit; debit

• debit; credit

What do we call contributions from the owner?

• Capital

• Drawings

• Contributions

• Assets

• Cash

When posting transactions to a transaction table, which of the following are true?

• There are always at least 2 accounts affected

• There are always only 2 accounts affected

• There has to be one debit and one credit

• There has to be one asset and one expense

• There has to be one decrease and one increase