Accounting Rules Quiz

According to the modern accounting rules, how many categories are used to classify accounts?

• Two

• Three

• Four

• Five

In the modern accounting system, what is considered as an internal liability?

• Capital

• Expense

• Income

• Asset

When an asset increases in the business, according to the asset rule, how should it be recorded?

• No change needed

• Credit

• Debit

• Record as an expense

If there is a decrease in liability in a business, how should it be recorded based on the liability rule?

• Record as an income

• No change needed

• Credit

• Debit

What should be done if there is an increase in income according to the income rule?

• Credit

• No change needed

• Debit

• Record as an expense

In the double entry system of accounting, what does each transaction involve recording?

• Only the give aspect

• Only the take aspect

• Both the give and take aspects

• None of the above

If an expense increases in a business, how should it be recorded based on the expense rule?

• Debit

• Record as an asset

• Credit

• No change needed

According to the rules, what should be done if there is a decrease in income?

• Record as a liability

• No change needed

• Credit

• Debit