WorksheetsChapter 2 - Quiz 1
Total questions: 9
Worksheet time: 5mins
The left side of an account is
blank.
a description of the account.
the debit side.
the balance of the account.
A debit to an asset account indicates
an error.
a credit was made to a liability account.
a decrease in the asset.
an increase in the asset.
Which of the following correctly identifies normal balances of accounts?
Assets Debit Liabilities Credit Equity Credit Revenues Debit Expenses Credit
Assets Debit Liabilities Credit Equity Credit Revenues Credit Expenses Credit
Assets Credit Liabilities Debit Equity Debit Revenues Credit Expenses Debit
Assets Debit Liabilities Credit Equity Credit Revenues Credit Expenses Debit
An account will have a credit balance if the
credits exceed the debits.
first transaction entered was a credit.
debits exceed the credits.
last transaction entered was a credit.
Assets normally show
credit balances.
debit balances.
debit and credit balances.
debit or credit balances.
Which account below is not a subdivision of retained earnings?
Dividends
Revenues
Expenses
Share Capital-Ordinary
Which of the following statements is not true?
Expenses increase equity.
Expenses have normal debit balances.
Expenses decrease equity.
Expenses are a negative factor in the computation of net income.
On January 14, Ericsson Industries purchased supplies of $500 on account. The entry to record the purchase will include
a debit to Supplies and a credit to Accounts Payable.
a debit to Supplies Expense and a credit to Accounts Receivable.
a debit to Supplies and a credit to Cash.
a debit to Accounts Receivable and a credit to Supplies.
At January 1, 2025, LeAnna Industries reported retained earnings of $260,000. In 2025, LeAnna had a net loss of $60,000 and paid dividends of $40,000. At December 31, 2025, the amount of retained earnings is
$260,000.
$280,000.
$200,000.
$160,000.
