The normal balance for asset accounts is:

a. Debit

b. Credit

The normal balance for owner’s capital account

accounts is:a. Debit

b. Credit

The normal balance for liability accounts is:

a. Debit

b. Credit

The normal balance for accounts receivable account

is:a. Debit

b. Credit

• An increase in a liability account is recorded as a

– A. Debit– B. Credit

• A decrease in the owner’s capital a account is recorded as a

– A. Debit– B. Credit

• An increase in a Revenue account is recorded as a:

– A. Debit– B. Credit

• 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. 10,000 C. 12,000

• B. 11,000 D. $1,000

• Each of the following is a business expense except payment for

• A. Advertising C. Telephone

• B. Rent D. Supplies

• The costs of doing businesses are known as

• A. Liabilities B. Expenses

• C. Debit D. Owner’s equity

• The amount entered on the right side of an account is the

• A. Debit B. Credit

• C. property rights D. owner’s equity

• 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 receivable D. withdrawal

• The dollar balance of a _______________ account is carried forward from one period to the next.

• A. Asset B. Liability

• C. Owners Equity D. Permanent

• An account’s ____________ is always on the increase side of an account

• A. Normal Balance B. Credit

• C. Debit D. expense

• Income earned from the sale of goods and services is called _____________

• A. Equity B. Revenue

• C. Financial Claim C. Credit

• A credit to an account always increases it; a debit to an account always decreases it.

• A. True

• B. False

• Every transaction affects two or more accounts and is recorded by equal amounts of debits and credits.

• A. True

• B. False

• A business groups its accounts in a ledger.

• A. True

• B. False

• The difference between the debit and credit amounts in an account is the account balance.

• A. True

• B. False