1. The normal balance for asset accounts is: a.Debit b.Credit

2. The normal balance for owner’s capital account accounts is: a.Debit b.Credit

3. The normal balance for liability accounts is: a.Debit b.Credit

4. The normal balance for accounts receivable account is: a.Debit b.Credit

5. An increase in a liability account is recorded as a –A. Debit –B. Credit

6. A decrease in the owner’s capital a account is recorded as a –A. Debit –B. Credit

7. An increase in a Revenue account is recorded as a: –A. Debit –B. Credit

8. If a creditor’s financial claim to property totals $1,000 and the owner’s financial claim to the property totals $11,000 and the property value is A.10,000C. 12,000 B. 11,000D. $1,000

9. Each of the following is a business expense except payment for A. AdvertisingC. Telephone B. RentD. Supplies

10. The costs of doing businesses are known as A. LiabilitiesB. Expenses C. DebitD. Owner’s equity

11. The amount entered on the right side of an account is the A. DebitB. Credit C. property rightsD. owner’s equity

12. The total amount of money to be received in the future for goods or services sold on credit is the A. revenue B. property rights C. Accounts receivableD. withdrawal

13. The dollar balance of a _______________ account is carried forward from one period to the next. A. AssetB. Liability C. Owners EquityD. Permanent

14. An account’s ____________ is always on the increase side of an account A. Normal BalanceB. Credit C. DebitD. expense

15. Income earned from the sale of goods and services is called _____________ A. EquityB. Revenue C. Financial ClaimC. Credit

16. A credit to an account always increases it; a debit to an account always decreases it. A. True B. False

17. Every transaction affects two or more accounts and is recorded by equal amounts of debits and credits. A. True B. False

18. A business groups its accounts in a ledger. A. True B. False

19. The difference between the debit and credit amounts in an account is the account balance. A. True B. False