The normal balance for asset accounts is a

The normal balance for asset accounts is: a. Debit b. Credit

The normal balance for owner’s capital accounts is: a. Debit b. Credit

The normal balance for liability accounts is: a. Debit b. Credit

The normal balance for accounts receivable account is: a. Debit b. Credit

• An increase in a liability account is recorded as a – A. Debit – B. Credit

• A decrease in the owner’s capital a account is recorded as a – A. Debit – B. Credit

• An increase in a Revenue account is recorded as a: – A. Debit – B. Credit

• If a creditor’s financial claim to property totals $1, 000 and the owner’s financial claim to the property totals $11, 000 and the property value is • A. 10, 000 C. 12, 000 • B. 11, 000 D. $1, 000

• Each of the following is a business expense except payment for • A. Advertising • B. Rent C. Telephone D. Supplies

• The costs of doing businesses are known as • A. Liabilities • C. Debit B. Expenses D. Owner’s equity

• The amount entered on the right side of an account is the • A. Debit B. Credit • C. property rights D. owner’s equity

• The total amount of money to be received in the future for goods or services sold on credit is the • A. revenue B. property rights • C. Accounts receivable D. withdrawal

• The dollar balance of a ________ account is carried forward from one period to the next. • A. Asset B. Liability • C. Owners Equity D. Permanent

• An account’s ______ is always on the increase side of an account • A. Normal Balance • C. Debit B. Credit D. expense

• Income earned from the sale of goods and services is called _______ • A. Equity B. Revenue • C. Financial Claim. C. Credit

• A credit to an account always increases it; a debit to an account always decreases it. • A. True • B. False

• Every transaction affects two or more accounts and is recorded by equal amounts of debits and credits. • A. True • B. False

• A business groups its accounts in a ledger. • A. True • B. False

• The difference between the debit and credit amounts in an account is the account balance. • A. True • B. False