Accounting Chapter 5

Which of the following is a temporary account?

• Utilities Expense

• Accounts Payable

• Liabilities

• Assets Account

A business should have separate accounts for recording revenue and expenses.

• True

• False

A decrease to Collection Revenue is recorded as a __________.

• Debit

• Credit

Permanent accounts start each accounting period with a zero balance.

• True

• False

Answer explanation

Temporary Accounts do not Permanent Accounts

Which type of account decreases the capital of business and is classified as a temporary owner's equity account?

• revenue account

• liability account

• accounts payable account

• withdrawal account

A skeleton form of an account showing only the debit and credit columns is called a(n)

• T Account

• Accounting Equation

• Account Balance

• None of these answers are correct

The rules of debit and credit for expense accounts are the same rules for asset accounts.

• True

• False

Liability, revenue, and withdrawal accounts all have normal credit balances.

• True

• False

The dollar balance of a(n)______ account is carried forward from one period to the next.

• Permanent

• Temporary

• Revenue

• Expenses

The cost of doing business are known as ___________.

• expense

• sales

• revenue

• withdrawal