Accounting Quiz

Which of the following accounts increases with a debit?

• Accounts Payable

• Service Revenue

• Cash

• Common Stock

Which side of the T-account is the credit side?

• Left

• Right

• Top

• Bottom

Which account decreases with a credit?

• Revenue

• Accounts Receivable

• Accounts Payable

• Retained Earnings

Debits are used to increase which type of account?

• Liabilities

• Revenues

• Expenses

• Common Stock

Which of the following accounts normally has a debit balance?

• Unearned Revenue

• Salaries Payable

• Accounts Receivable

• Retained Earnings

A credit to an asset account indicates:

• An increase in the account.

• A decrease in the account.

• No effect on the account.

• The account is incorrect.

A debit to Utilities Expense will:

• Increase liabilities.

• Decrease net income.

• Decrease expenses.

• Increase equity.

What happens when you credit an expense account?

• The account balance increases.

• The account balance decreases.

• It affects retained earnings directly.

Which financial statement shows the company’s revenues and expenses?

• Balance Sheet

• Statement of Retained Earnings

• Income Statement

• Statement of Cash Flows

The accounting equation is used in which financial statement?

• Balance Sheet

• Income Statement

• Statement of Retained Earnings

• Statement of Cash Flows