MX3 REVIEW

What does 'DR' stand for in accounting?

• Deposit

• Debit

• Distribution

• Deductions

Which of the following increases with a debit entry?

• Revenues

• Assets

• Capital

• Liabilities

What is the abbreviation for credit?

• CR

• CE

• CD

• CT

Which account is decreased when cash is paid for repair services?

• Service Revenue

• Accounts Payable

• Cash

• Repair Expense

What is the normal balance for liabilities?

• Debit

• Credit

• Both

• Neither

What does a T-account represent?

• A method of calculating taxes

• A graphical representation of a general ledger

• A type of financial statement

• A summary of cash flow

Which of the following is NOT a classification of accounts?

• Expenses

• Revenues

• Investments

• Assets

What is the purpose of a trial balance?

• To test the equality of debit and credit balances

• To record transactions

• To prepare financial statements

• To calculate taxes

Which account is credited when the owner makes an additional cash investment?

• Cash

• Owner's Capital

• Owner's Drawing

• Service Revenue

What is the first account title in a standard chart of accounts?

• Expenses

• Accounts Receivable

• Liabilities

• Cash