Accounting Basics Quiz

An account records:

• Only revenues

• Increases and decreases in a specific item

• Only expenses

• Only assets

The right side of a T-account is called:

• Debit

• Credit

• Balance

• Transaction

The left side of a T-account is called:

• Credit

• Debit

• Balance

• Entry

Double-entry system means:

• Each transaction affects one account only

• Debits must equal credits

• Credits are always more than debits

• Posting is optional

If debits are greater than credits, the account has:

• A credit balance

• A debit balance

• No balance

• An error

Normal balance of assets is:

• Debit

• Credit

• Zero

• Both sides

Liabilities normally have:

• Debit balances

• Credit balances

• Both

• None

Owner's drawings normally have:

• Debit balance

• Credit balance

• Zero balance

• Alternate balance

Revenues increase:

• Owner's equity

• Assets only

• Liabilities

• Drawings

Expenses decrease:

• Liabilities

• Owner's equity

• Assets only

• Revenues