Accounting 1.01 VoCats
Review PowerPoint
What is the effect on assets when the
owner increases owner's equity by
investing $1,000 in the business?
A. Decreased by $1,000
B. Decreased by $2,000
C. Increased by $1,000
D. Increased by $2,000
ANSWER: C
What is the effect on assets when the owner increases
owner's equity by investing $1,000 in the business?
(CASH $$)
What is the effect on owner's equity
when a business receives $2000 cash
from sales?
A. Decreased by $2000
B. Increased by $2000
C. Decreased by $4,000
D. Increased by $4,000
ANSWER: B
What is the effect on owner's equity when
a business receives $2000 cash from sales?
REVENUE
(CASH $$)
What is the effect when $200 cash is
paid to an advertising agency for
advertisements for the business?
A. Assets decrease $200 and owner's equity
decreases $200.
B. Assets increase $200 and owner's equity
increases $200.
C. Assets increase $200 and owner's equity
decreases $200.
D. Liabilities increase $200 and owner's
equity decreases $200.
ANSWER: A
What is the effect when $200 cash is paid to an
advertising agency for advertisements for the business?
(CASH $$)
Advertising Exp.
What is the effect when $300 cash is
paid to Accounts Payable/Bob's Office
Supply?
A. Assets decrease $300 and owner's equity
decreases $300.
B. Assets increase $300 and owner's equity
increases $300.
C. Assets increase $300 and liabilities decreases
$300.
D. Assets decrease $300 and liabilities decrease
$300.
ANSWER: D
What is the effect when $300 cash is paid to Accounts
Payable/Bob's Office Supply?
(CASH $$)
Acts Pay.
What is an example of an account
that has a normal credit balance?
A. Cash
B. Accounts Payable/Jones Supply
C. Prepaid Insurance
D. Supplies
ANSWER: B
What is an example of an account
that has a normal credit balance?
A. Cash
B. Office Equipment
C. Sales
D. Supplies
ANSWER: C
What is an example of an account
that has a normal credit balance?
A. Cash
B. Joan Brown, Drawing
C. Supplies
D. Tyler Jackson, Capital
ANSWER: D
What is an example of an account
that has a normal debit balance?
A. Mary Johnson, Capital
B. Accounts Payable/Ray's Office
Equipment
C. Rent Expense
D. Sales
ANSWER: C
What is an example of an account
that has a normal debit balance?
A. Accounts Payable/Adam's Office
Supply
B. Advertising Expense
C. Mary Johnson, Capital
D. Sales
ANSWER: B
What is an example of an account
that has a normal debit balance?
A.
B.
C.
D.
Accounts Receivable/Oakdale School
Accounts Payable/Jones Supply
Mary Johnson, Capital
Sales
ANSWER: A
What is an example of an account
that has a normal credit balance?
A.
B.
C.
D.
Advertising Expense
Accounts Receivable/Davis Company
Delivery Revenue
Samuel Johnson, Drawing
ANSWER: C
Cash, Office Equipment, and Prepaid
Insurance are all classified as:
A. assets
B. liabilities
C. owner's equity
D. Revenue
ANSWER: A
Rent, the telephone bill, and
advertising costs are all classified as:
A. assets
B. expenses
C. liabilities
D. Revenue
ANSWER: B
“Sales” is classified as:
A. assets
B. expenses
C. liabilities
D. Revenue
ANSWER: D
Mariah Smith, Capital and Mariah
Smith, Drawing are both classified as:
A. owner's equity
B. expenses
C. liabilities
D. Revenue
ANSWER: A