Moraine Park Technical College
Accounting 1 – Problem Solving Exercise 2 – Transaction Analysis
1. _________________ are Balance Sheet accounts.
A. revenue and expense accounts
B. asset, liability and owner's equity accounts
C. asset, revenue and equity accounts
D. revenue and liability accounts
2. The debit side of an account is the __________________ of an account.
A. right-hand side
B. left-hand side
3. An account has a debit balance when __________________.
A. the amount of the debits exceeds the amount of the credits
B. there are more entries on the debit side than on the credit side
C. its normal balance is a debit without regard to the amounts or number of entries on the debit side
D. the last entry of the accounting period was posted on the debit side
4. A debit to an account represents a(n) increase in a/an ___________account and a decrease in a/an ____________.
A. Liability; Asset B. Asset; Equity C. Expense; Liability D. Both B and C
5. _________________________ accounts have normal debit balances.
A. Revenues, Liabilities, Capital
B. Capital, Assets
C. Liability, Expenses
D. Assets, Expenses
6. A credit to an account represents a decrease in a(n) ______________ account.
A. asset
B. liability
C. capital
D.revenue
7. ____________ is a true application of the rules of debits and credits.
A. Increase rent expense with debits and normal balance is a debit
B. Decrease accounts receivable with credits and normal balance is a credit
C. Increase accounts payable with credits and normal balance is a debit
D. Decrease cash with debits and normal balance is a credit
8. __________ is the classification and _______ normal balance of a fees earned account.
A. Revenue; Credit B. Expense; Debit C. Revenue; Debit D. Liability; Credit
9. The classification and normal balance of a drawing account is ___________ with a _______ balance.
A. Expense; Debit B. Revenue; Debit C. Liability; Credit D. Owner’s Equity; Debit
10. __________ are accounts in which increases recorded as credits.
A. Liability, Revenue
B. Drawing, Asset
C. Expense, Liability
D. Revenue, Drawing
11. ________________ records the withdrawal of cash by Mason, the owner of a business, for personal use.
Debit
A.
B.
C.
D.
Salaries
Mason, Capital
Mason, Drawing
Salaries
Credit
Sales
Cash
Cash
Cash
12. ____________________ records the payment of an accounts payable.
Debit
A.
B.
C.
D.
Accounts Payable
Cash
Expense
Cash
Credit
Cash
Accounts Payable
Cash
Expense
13. ____________ records supplies sold by Regan Repair at cost to another repair shop, for cash..
Debit
A.
B.
C.
D.
Credit
Supplies
Cash
Supplies
Accounts Payable
Cash
Supplies
Accounts Payable Supplies
14. ___________________ records a purchase of office supplies on account for $500.00.
Debit
A. Supplies
B. Supplies
C. Accounts Payable
99028099
Credit
Cash
Accounts Payable
Supplies
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