WorksheetsAnalyzing Transactions
Total questions: 20
Worksheet time: 24mins
Credit means:
increase
decrease
left
right
Debit means
increase
decrease
left
right
Asset accounts decrease on the credit side.
TRUE
FALSE
Mikaela Mundt invested $2,000.00 of her own money in the business. Receipt No. 1. The two accounts affected are (a) .
Used business cash to purchase supplies costing $216.00. Wrote Check No. 1. This transaction increases and decreases assets.
False
True
The two accounts involved when you receive cash from the owner as an investment are (a) and (b) .
Buying supplies on account creates a (a) .
Match each type of account with its normal balance side.
debit
Asset account
credit
Liability account
normal balance
General term for the side that increases an account
Paying cash for insurance (a) increases and decreases an asset.
Each asset account normally has a debit balance.
true
false
An accounting device used to analyze transactions is a T account.
true
false
The sales account is NEVER...
debited
credited
The normal balance side of an expense or drawing account is:
debit
credit
normal balance
A withdrawal (a) decreases owner's equity
When a business pays cash to reduce a liability, which accounts are affected?
Cash and Liability
Asset and Expense
Cash and Asset
Liability and Capital
Match the following actions with their effect on owner's equity.
Purchasing supplies
Decreases owner's equity due to business expenses
Paying expenses
Decreases owner's equity by reducing available funds
Owner withdrawal
Decreases owner's equity as funds are taken out by the owner
Owner investment
Increases owner's equity by adding capital to the business
When cash is paid for an expense, which accounts are affected?
Cash and Expense
Asset and Liability
Expense and Revenue
Cash and Capital
What we "Owe' to are share holders/ company is called (a)
(a) include loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued ...
Match the following
Promises of payment from customers to sellers.
Accounts Receivable
Resources a company owns or controls.
Assets
Creditors' claims on assets.
Liabilities
Owner's claim on assets.
Equity
Increases equity from sales of products and services.
Revenue
