1. Income statement accounts are?
Assets and Liabilities
Revenue and Expense
Expense and Stockholders
Assets and Revenue
2. Money generated by the sale of goods and services is called?
Revenue
Expense
Debits
Credits
3. An amount of money recordeded on the left side of an account?
Debit
Credit
Revenue
Expense
4. If the debit side of an account has a greater number than the credit side, the account is said to have a _________ balance?
credit
debit
increased
decreased
5. Cash sales for the day ae recorded as?
A debit to sales and a credit to cash
A credit to sales and a debit to cash
A debit to cash and adebit to sales
A credit to cash and a credit to sales
6. Revenue accounts normally have ________ balances?
debit
credit
larger balances than debit accounts
None of the above
7. Paying the phone bill would be recorded as?
A debit to cash and a credit to phone bill
A credit to cash and a debit to utilities expense
A debit to utilities expense and a debit to cash
None of the above
8. The clasification of he Purhases Account?
Expense
Revenue
Cost of Goods Sold
Liability
9. When selling merchandsise on account?
Debit cash credit sales
Debit cash and debit accounts receivable
Debit accounts receivable and credit sales
Debit utilities expense credit cash
10. If a company purchases merchandise for cash to sell to its customers?
Debit purchases and credit cash
Debit cash and credit purchases
Credit accounts receivable and debit purchases
none of the above
11. Decreases in account balances go on the __________ side?
Debit
Credit
Balance side
Opposite balance side
12. If we need to increase an expense account, we would?
Credit it
Put it on opposite the balance side
Debit it and put it on the balance side
Credit it
13.If we need to increase a revenue account, we would?
Credit it
Debit it
Put it on opposite the balance side
None of the above
14. How many different types of accounts are there?
3
4
5
6
15. Examples of revenue accounts are?
Sales, commissions, royalities
Cash, equipment, inventory
Rent, salary expense
Notes payable, accounts payable
Chapter 8 Accounting Test