0917一

What is the fundamental accounting equation?

• Assets = Liabilities + Expenses
• Assets = Liabilities + Equity
• Assets = Revenue + Equity
• Assets = Liabilities - Equity

Answer explanation

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Which of the following accounts would be debited when a company purchases equipment for cash?

• Cash
• Equipment
• Accounts Payable
• Revenue

Which of the following is true about double-entry bookkeeping?

• Each transaction affects only one account
• Debits and credits must be equal in value
• Debits and credits do not need to be equal
• Only asset accounts are affected by double-entry bookkeeping

When recording the sale of goods on credit, which account is credited?

• Accounts Receivable
• Sales (Revenue)
• Cash
• Inventory

A company purchases a vehicle on credit. Which accounts are affected?

• Debit Vehicle, Credit Cash
• Debit Vehicle, Credit Accounts Payable
• Debit Cash, Credit Vehicle
• Debit Accounts Payable, Credit Vehicle

What is the correct entry to record a loan received from the bank?

• Debit Cash, Credit Bank Loan
• Debit Bank Loan, Credit Cash
• Debit Cash, Credit Revenue
• Debit Bank Loan, Credit Revenue

When recording a transaction where a business pays for office supplies with cash, which account is debited?

• Office Supplies
• Accounts Payable
• Cash
• Capital

What does a trial balance list?

• All transactions recorded during a period
• Only asset and liability accounts
• Only income and expense accounts
• All ledger accounts and their balances

What is the correct entry to record a loan received from the bank?

• Debit Cash, Credit Bank Loan
• Debit Bank Loan, Credit Cash
• Debit Cash, Credit Revenue
• Debit Bank Loan, Credit Revenue

Which entry is used to record an increase in an expense account?

• Either debit or credit
• Credit
• Debit
• No entry