Which of the following is an example of a real account?
a) Accounts payable
b) Cash
c) Revenue
d) Expenses
In double-entry accounting, which type of account is credited when a company issues stock?
a) Liability account
b) Asset account
c) Equity account
d) Revenue account
Which account is affected by a debit entry?
a) Liability
b) Expense
c) Income
d) Owner’s equity
When an expense is incurred, what is the effect on the accounting equation?
a) Increase in assets, decrease in liabilities
b) Decrease in assets, increase in liabilities
c) Decrease in equity, increase in liabilities
d) Decrease in equity, no effect on assets
Which of the following accounts is typically debited when goods are purchased on credit?
a) Accounts payable
b) Inventory
c) Cash
d) Sales revenue
What is the rule of debit for asset accounts?
a) Debit increases the asset
b) Debit decreases the asset
c) Debit increases the liability
d) Debit decreases the liability
Which of the following accounts is a liability account?
a) Accounts payable
b) Revenue
c) Drawings
d) Capital
In a trial balance, which of the following accounts will have a credit balance?
a) Expenses
b) Cash
c) Sales
d) Prepaid expenses
Which account is debited when a company receives cash from customers for services rendered?
a) Revenue
b) Cash
c) Accounts payable
d) Accounts receivable
Which type of account is retained earnings?
a) Revenue account
b) Expense account
c) Liability account
d) Equity account
Which of the following accounts is a temporary account?
a) Accounts payable
b) Sales revenue
c) Capital
d) Equipment
Which account is credited when a company pays off its outstanding debt to creditors?
a) Cash
b) Accounts payable
c) Capital
d) Accounts receivable
When cash is paid to creditors, which of the following is the effect?
a) Increase in liabilities
b) Increase in equity
c) Decrease in assets
d) Decrease in liabilities
Which of the following accounts increases with a credit?
a) Accounts payable
b) Accounts receivable
c) Expense
d) Drawing
What is the effect of a credit on the capital account?
a) Increase in capital
b) Decrease in capital
c) No effect on capital
d) Decrease in assets
Which of the following accounts is debited when a company purchases goods on credit?
a) Accounts payable
b) Inventory
c) Sales revenue
d) Cash
Which of the following accounts is an example of a revenue account?
a) Accounts payable
b) Service income
c) Cash
d) Accounts receivable
Which type of account is affected by the rule “debit increases and credit decreases”?
a) Assets
b) Liabilities
c) Revenue
d) Expenses
Which of the following accounts is debited when cash is withdrawn by the owner for personal use?
a) Cash
b) Drawings
c) Capital
d) Accounts payable
Which type of account is affected by the rule “debit decreases and credit increases”?
a) Revenue
b) Expenses
c) Liabilities
d) Assets
What is the effect of a debit on an expense account?
a) Decreases the expense
b) Increases the expense
c) Has no effect
d) Decreases the revenue
Which of the following accounts is typically credited when a company receives cash from customers?
a) Accounts payable
b) Cash
c) Accounts receivable
d) Revenue
What does a credit to a liability account do?
a) Increase the liability
b) Decrease the liability
c) Increase the asset
d) Decrease the asset
Which of the following accounts is a nominal account?
a) Capital
b) Rent expense
c) Accounts payable
d) Accounts receivable
When a company records a sale on credit, which account is debited?
a) Accounts payable
b) Revenue
c) Accounts receivable
d) Cash
Which of the following is the rule for liabilities in double-entry accounting?
a) Debit increases, credit decreases
b) Debit decreases, credit increases
c) Debit increases, credit increases
d) Debit decreases, credit decreases
What is the rule of debit for equity accounts?
a) Debit increases equity
b) Debit decreases equity
c) Debit has no effect on equity
d) Debit increases revenue
Which of the following accounts is debited when an asset is purchased on credit?
a) Accounts payable
b) Cash
c) Inventory
d) Accounts receivable
What is the effect of a debit to a capital account?
a) Increases the capital
b) Decreases the capital
c) Increases the asset
d) Decreases the asset
