WorksheetsAccounting I - Chapter 3 Vocabulary Review
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
1. The normal balance of a capital account
a)
is a credit balance.
b)
can be either a debit or a credit balance.
c)
is a debit balance.
d)
is called a footing.
2.
2. Increases are entered on the credit side of a(n)
a)
liability account.
b)
expense account.
c)
drawing account.
d)
asset account.
3.
3. The difference between the total debits and credits to an account is called a
a)
trial balance.
b)
ruling
c)
balance.
d)
footing.
4.
4. Revenues
a)
increase owner's equity.
b)
decrease liabilities.
c)
increase expenses.
d)
decrease cash.
5.
5. A credit represents a decrease in
a)
revenues.
b)
owner's equity.
c)
a liability.
d)
an asset.
6.
6. The trial balance
a)
shows only credit balances.
b)
shows the current date.
c)
lists only accounts that are used to prepare the balance sheet.
d)
shows only debit balances.
7.
7. An increase in an asset account may be offset by a(n)
a)
decrease in a liability account.
b)
increase in owner's equity.
c)
decrease in owner's equity.
d)
increase in an expense account.
8.
8. Examples of revenue accounts include all of the following EXCEPT
a)
Sales.
b)
Professional Fees.
c)
Wages.
d)
Delivery Fees.
9.
9. Falana pays wages in the amount of $3,147. This transaction
a)
decreases Wage Expense.
b)
increases Cash.
c)
decreases Cash.
d)
increases owner's equity.
10.
10. Asset and expense accounts normally have
a)
negative balances.
b)
debit balances.
c)
credit balances.
d)
large balances.
11.
11. The purchase of a supply of markers for three months should be recorded as an increase in revenue and a decrease in cash.
a)
True
b)
False
12.
12. If services for the month total $7,000 in cash and $1,500 on account, the revenue account increases $8,500.
a)
True
b)
False
13.
13. Increases in owner's equity are entered as credits.
a)
True
b)
False
14.
14. Liability accounts normally have debit balances.
a)
True
b)
False
15.
15. Revenue accounts normally have debit balances.
a)
True
b)
False
16.
16. Kate made a $475 payment on her company van. She should credit Accounts Payable and debit the automobile account.
a)
True
b)
False
17.
17. The balance of a T account is on the side with the larger footing.
a)
True
b)
False
18.
18. Owner's equity includes four types of accounts: Owner's Capital, Revenues, Expenses, and Owner's Drawing.
a)
True
b)
False
19.
19. An account is a form or record used to keep track of the increases or decreases in the individual assets, liabilities, owner's equity, revenues, and expenses of a business entity.
a)
True
b)
False
20.
20. Withdrawals of cash and other assets by the owner for personal reasons decrease owner's equity.
a)
True
b)
False
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