FABM1 Chapter Test 8

What is an account?

• A ledger record
• A record of similar transactions
• A list of revenues and expenses
• A company's bank record

Which side of an account increases assets?

• Credit
• Debit
• Left
• Right

What is the normal balance of liabilities?

• Debit
• Credit
• Left
• Right

Which account is an example of a tangible asset?

• Accounts Receivable
• Patents
• Office Equipment
• Service Revenue

What type of asset is expected to be used or converted to cash within a year?

• Fixed
• Intangible
• Current
• Equity

Which of the following is a fixed asset?

• Cash
• Accounts Payable
• Equipment
• Supplies

What is an example of a current liability?

• Long-term loans
• Utilities Payable
• Office Equipment
• Patents

Which account represents the owner’s residual interest in the business?

• Liabilities
• Equity
• Income
• Expenses

Which account records income earned from providing services?

• Service Revenue
• Unearned Revenue
• Salaries Expense
• Utilities Payable

What does the Chart of Accounts list?

• Only revenue accounts
• All accounts in the general ledger
• Current liabilities
• Capital accounts