Accounting Final Exam

A business has total assets of $30,000.00.  Then the business pays $1,000.00 on account, buys insurance coverage of $750.00, buys supplies for $1200.00, and pays $300.00 more on account.  Total assets are now:

• $25,750
• $26,750
• $28.700
• none of the above

Cash in increased by:

• withdrawals
• expenses
• revenue
• none of the above

A record summarizing all the information pertaining to a single item in the accounting equation is:

• debit
• credit
• an account
• a T account

The normal balance side of an asset account is the

• debit side
• credit side
• decrease side
• right side

When a business pays for insurance, Prepaid Insurance is

• increased with a debit
• increased by a credit
• decreased by a debit
• decreased by a credit

When cash is paid for rent, Rent Expense is

• increased by a debit
• increased by a credit
• decreased by a debit
• decreased by a credit

The values of all things owned (assets) are on the accounting equation's

• left side
• right side
• credit side
• none of the above

The normal balance side of any revenue account is

• debit side
• credit side
• left side
• none of the above

The recording of debit and credit parts of a transaction is

• checking equality
• double-entry accounting
• single-entry accounting
• transaction analysis

A business form ordering a bank to pay cash from a bank account is a

• check
• memorandum
• receipt
• all of the above