WorksheetsAccounting Chapter 2
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
An amount recorded on the right side of a T account is a debit.
a)
TRUE
b)
FALSE
2.
Each liability account has a normal debit balance.
a)
TRUE
b)
FALSE
3.
Asset accounts decrease on the credit side.
a)
TRUE
b)
FALSE
4.
Each transaction changes the balances in at least two accounts.
a)
TRUE
b)
FALSE
5.
When cash is paid for supplies, the Supplies account is increased by a credit.
a)
TRUE
b)
FALSE
6.
A drawing account is increased by debits and decreased by credits.
a)
TRUE
b)
FALSE
7.
Increases in expense accounts are recorded as debits because they decrease the owner’scapital account.
a)
TRUE
b)
FALSE
8.
The normal balance side of an Accounts Receivable account is a debit.
a)
TRUE
b)
FALSE
9.
Utilities Expense is increased with a debit.
a)
TRUE
b)
FALSE
10.
Cash is increased with a debit.
a)
TRUE
b)
FALSE
11.
Decreases to liability accounts are recorded on the credit side.
a)
TRUE
b)
FALSE
12.
When an owner invests cash in a business, the owner’s capital account is
a)
a. increased by a debit.
b)
b. increased by a credit.
c)
c. decreased by a debit.
d)
d. decreased by a credit.
13.
When a business pays cash on account, a liability account is
a)
a. increased by a debit.
b)
b. increased by a credit.
c)
c. decreased by a debit.
d)
d. decreased by a credit.
14.
When cash is received from sales, the change in the owner’s equity is usually recorded
a)
a. on the debit side.
b)
b. directly in the owner’s capital account.
c)
c. as interest revenue.
d)
d. in a separate revenue account.
15.
Increases in a revenue account are shown on a T account’s
a)
a. debit side.
b)
b. left side.
c)
c. credit side.
d)
d. none of these.
16.
When $1,500 cash is received on account,
a)
a. Sales is increased with credit and Cash is increased with a credit.
b)
b. Accounts Receivable is increased with a debit and Cash is increased with a credit.
c)
c. Accounts Receivable is decreased with a credit and Cash is increased with a debit.
d)
d. Accounts Receivable is decreased with a debit and Cash is increased with a debit.
17.
Debit means
a)
increase
b)
decrease
c)
left
d)
right
18.
Credit means
a)
increase
b)
decrease
c)
left
d)
right
19.
The purpose of the trial balance is to
a)
check the "cash" t-account balance
b)
ensure total debits and total credits equal
c)
calculate the account balances to use on the balance sheet
d)
double check the balance of the liability and owner's capital side of the accounting equation
20.
T / F : The trial balance is a formal financial statement.
a)
True
b)
False
100 %
