Accounting 1 - Chapter 2

Paid cash to the owner for personal use. What account is debited?

Answer explanation

Drawing

Received cash on account from Oakdale School. What account is debited?

Answer explanation

Cash

Paid cash for rent. What account is debited?

Answer explanation

Rent Expense

When $1,500 cash is received on account is Accounts Receivable increased or decreased?

Answer explanation

Decreased

Paid cash on account to Supply Depot. What is the credit?

Answer explanation

Cash

Bought supplies on account. What is the credit?

Answer explanation

Accounts Payable

Paid cash for supplies. What is the debit?

Answer explanation

Supplies

Paid cash for insurance. What is the debit?

Answer explanation

Prepaid Insurance

All of the following are a type of utility except

• Electric

• Gas

• Internet

• Repairs

Each transaction changes the balances in at least _______ accounts.

• Zero

• One

• Two

• A transaction involves accounts?