Final Coaching Quiz

A credit entry decreases the balance of...

• Assets

• Income

• Liabilities

• Owner's Equity

The purchase of a service vehicle on account...

• Will decrease asset and decrease liability

• Will decrease equity

• Will increase asset and decrease liability

• Will increase asset and increase liability

In the accounting equation, an increase in asset can be associated with...

• Decrease in a liability

• Decrease in owner's equity

• Increase in liability

• Increase in another asset

Which of the following classifications of accounts has a normal credit balance?

• Withdrawals

• Revenues

• Expenses

• Cash

Which of the following errors will cause a trial balance to be out of balance?

• A journal entry was accidentally posted twice.

• A credit was posted to an account as debit.

• The bookkeeper forgot to journalize a transactions.

• The bookkeeper forgot to post a journal entry to the ledger.

Which of the following is an asset account?

• Insurance expense

• Supplies expense

• Supplies

• Sales

Which of the following accounts will not affect owner's equity?

• Owner's withdrawals

• Advertising expense

• Revenues

• Prepaid Insurance

Which of the following accounts has a normal debit balance?

• Owner's withdrawals

• Owner's Capital

• Unearned Revenues

• Salaries Payable

The Owner's Withdrawals account appears in...

• the income statement only

• the balance sheet only

• the statement of changes in equity only

• both income statement and the balance sheet

A credit may result in...

• increase in asset account

• decrease in capital account

• increase in liability account

• decrease in liability account