Accounting Quiz

What is a T Account in accounting?

• A) A type of financial statement

• B) A visual representation of individual accounts in the form of a "T"

• C) A record of transactions in chronological order

• D) A summary of income and expenses

What do debits and credits refer to in accounting?

• Types of credit cards

• Types of debit cards

• Different types of financial transactions

• Specific types of bank accounts

In a double-entry accounting system, how many accounts are affected by each transaction?

• One account

• At least two accounts

• Three accounts

• Four accounts

What are debits and credits recorded as in a company's books?

• Balance sheets

• T Accounts

• Journal entries

• Financial statements

On a T Account, where is the debit located?

• On the right side

• On the left side

• On the top

• On the bottom

Can debits and credits in different accounts result in either an increase or a decrease?

• Yes, they can result in either an increase or a decrease

• No, they can only result in an increase

• No, they can only result in a decrease

• No, they do not affect the account balance

What does the left side (debit side) of a T Account represent for asset accounts?

• A) A decrease to the asset account

• B) An increase to the asset account

• C) A decrease to the liability account

• D) An increase to the equity account

For liabilities and equity accounts, what do debits signify?

• A) An increase to the account

• B) A decrease to the account

• C) No change to the account

• D) The closing of the account

What do credits always represent for liabilities and equity accounts?

• A) A decrease to the account

• B) An increase to the account

• C) No change to the account

• D) The closing of the account

What types of accounts are included in T Accounts for the Income Statement?

• A) Assets and liabilities

• B) Revenues, expenses, gains, and losses

• C) Equity and dividends

• D) Investments and withdrawals