ACCT 1.01 Quiz 1

Which of the following represents the accounting equation?

• L= OE + A

• A = L + OE

• OE = L + A

• None of the above

Which type of account is Prepaid Insurance and Supplies classified as?

• Liability

• Revenue

• Asset

• Expense

An asset is anything owned that can be exchanged for cash.

• True

• False

A liability is an amount owed that you can pay later.

• True

• False

The amount remaining after the value of all liabilities is subtracted from the value of all assets is called?

• Assets

• Owner's Equity

• Normal Balance

• Liabilities

The total amounts on the left side must always equal the total amounts on the right side.

• True

• False

The value of things owned (assets) are on the "right" side of the accounting equation.

• True

• False

What is the abbreviation for debit and credit?

• D and C

• Dr. and Cr.

• Dbt. and Crt.

• Db. and Ct.