1. The normal balance of a capital account

• is a credit balance.
• can be either a debit or a credit balance.
• is a debit balance.
• is called a footing.

2. Increases are entered on the credit side of a(n)

• liability account.
• expense account.
• drawing account.
• asset account.

3. The difference between the total debits and credits to an account is called a

• trial balance.
• ruling
• balance.
• footing.

4. Revenues

• increase owner's equity.
• decrease liabilities.
• increase expenses.
• decrease cash.

5. A credit represents a decrease in

• revenues.
• owner's equity.
• a liability.
• an asset.

6. The trial balance

• shows only credit balances.
• shows the current date.
• lists only accounts that are used to prepare the balance sheet.
• shows only debit balances.

7. An increase in an asset account may be offset by a(n)

• decrease in a liability account.
• increase in owner's equity.
• decrease in owner's equity.
• increase in an expense account.

8. Examples of revenue accounts include all of the following EXCEPT

• Sales.
• Professional Fees.
• Wages.
• Delivery Fees.

9. Falana pays wages in the amount of $3,147. This transaction

• decreases Wage Expense.
• increases Cash.
• decreases Cash.
• increases owner's equity.

10. Asset and expense accounts normally have

• negative balances.
• debit balances.
• credit balances.
• large balances.