Accounting 1A Review (Part 2)

If cash is increased by $2,000.00 when the owner invests cash in the business, then capital is ____.

• increased by $2,000.00

• decreased by $2,000.00

• increased by $1,000.00

• not changed

When a business pays cash for supplies, ____.

• liabilities increase

• assets and liabilities increase

• assets and liabilities decrease

• assets increase and assets decrease

When a business buys supplies on account, assets ____.

• increase

• increase and liabilities decrease

• decrease

• decrease and liabilities increase

A transaction that increases accounts receivable and increases owner's equity is ____.

• withdrawal

• revenue

• expense

• none are correct

The asset most commonly withdrawn by business owners is ____.

• contributions

• supplies

• cash

• insurance

The right side of a T account is the ____.

• debit side

• credit side

• normal balance side

• equity side

The normal balance side of an asset account is the ____.

• debit side

• credit side

• decrease side

• right side

The normal balance side of any revenue account is ____.

• the debit side

• the credit side

• the left side

• none are correct

A business form ordering a bank to pay cash from a bank account is a ____.

• receipt

• memo

• check

• all are correct

On each journal page, the year is written ____.

• for each entry

• on the first line of each column

• only for the first entry

• none are correct