Account Analysis Quiz

Which of these accounts has a credit balance?

• Land
• Supplies Expense
• Accounts Payable
• Accounts Receivable

Loans and Mortgages are classified as:

• Assets
• Liabilities
• Owner's Equity
• Revenue

What is the effect when a business pays cash for supplies?

• Supplies Increases, Cash Decreases
• Cash Increases, Supplies Decreases
• Owner's Equity Increases, Supplies Decreases

What happens when a business pays a telephone bill?

• Increase Drawing, Decrease Cash
• Increase Cash, Decrease Utilities Expense
• Increase (Utilities) Expense, Decrease Cash

What is an example of an account with a normal debit balance?

• Accounts Payable
• Loan
• Capital
• Prepaid Insurance

Land, buildings, and cash are classified as:

• Liabilities
• Assets
• Revenue

What is an example of a liability?

• Cash
• Utilities Expense
• Accounts Payable

What is the effect when an owner invests $6,000 into the business?

• Owner's Equity Decreases $6,000, Assets Decrease $6,000
• Drawing Increases $6,000, Owner's Equity Increases $6,000
• Assets Increase $6,000, Owner's Equity Increases $6,000

What is the effect on assets when a business receives $1,000 cash

• Increases $1,000
• Decreases $1,000
• Increases $500
• Decreases $500

What is an example of a revenue?

• Accounts Payable
• Loan
• Cash
• Sales