Accounting 1 - Chapter 2

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

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OFF

Answer explanation

Drawing

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

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OFF

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Cash

Paid cash for rent. What account is debited?

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OFF

Answer explanation

Rent Expense

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

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OFF

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Decreased

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

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OFF

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Cash

Bought supplies on account. What is the credit?

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OFF

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Accounts Payable

Paid cash for supplies. What is the debit?

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OFF

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Supplies

Paid cash for insurance. What is the debit?

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OFF

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?