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WorksheetsOwner's Equity Level 2
Total questions: 18
Worksheet time: 9mins
Which Owner's Equity account carries a normal debit balance?
Capital
Drawing
Owner's Equity
Stockholder's Equity
A _________ is a normal business activity that changes assets, liabilities, or owner's equity.
transaction
asset
journal
account
_________ are assets taken out of a business for the owner's personal use.
Supplies
Investments
Withdrawals
Expenses
The most common type of withdrawal by an owner from a business is the withdrawal of _______.
cash
liabilities
expenses
revenues
A _________ in owner's equity because of a withdrawal is a result of the normal operations of a business.
increase
decrease
neither
both
If a business received $2,000.00 from sales, this would:
increase assets and increase owner's equity
increase assets and decrease liabilities
increase liabilities and decrease owner's equity
decrease assets and decrease owner's equity
Two transactions that decrease owner's equity are:
expenses and withdrawals
expenses and investments
withdrawals and investments
liabilities and expenses
A transaction to pay for goods and services needed to operate a business results in a decrease in:
owner's equity
revenue
liabilities
expenses
If a business paid cash for repairs to equipment, this would:
increase owner's equity
increase liabilities
decrease owner's equity
decrease liabilities
If cash is paid for advertising,
two assets are changed
an asset and a liability are changed
an asset and owner's equity are changed
two liabilities are changed
When the owner withdraws cash for personal use,
liabilities increase and assets decrease
assets decrease and owner's equity increases
assets decrease and owner's equity decreases
liabilities decrease and assets decrease
What is an example of an account with a normal credit balance?
Loans Payable/UCB Bank
Loans Receivable/UCB Bank
Prepaid Insurance
Supplies
What is an example of an account with a normal debit balance?
Loans Payable/UCB Bank
Sales
Prepaid Insurance
Capital
Any Income is classified as:
assets.
expenses.
liabilities.
revenue.
Utilities, Rent, and the Cost of Goods Sold are all classified as:
assets.
liabilities.
revenues.
expenses.
What is the effect on owner's equity when a business receives $15,000 from sales?
Owner's equity is decreased by $15,000
Owner's equity is decreased by $30,000
Owner's equity is increased by $15,000
Owner's equity is increased by $30,000
What is the effect when $5,000 cash is paid on an account?
Assets decrease by $5,000; Owner's Equity decreases by $5,000
Assets increase by $5,000; Owner's equity increases by $5,000
Assets increase by $5,000; liabilities decrease by $5,000
Assets decrease by $5,000; Liabilities decrease by $5,000
Accounts Receivable/Tri-County Office Supply and Accounts Receivable/Union Recreation Facility are classified as:
assets
expenses
liabilities
revenue
