Revenues normally carry a ________ balance and are shown in the ________.

A) Debit; Statement of stockholders' equity

B) Credit; Income statement

C) Credit; Balance sheet

D) Debit; Balance sheet

Answer: B

Dividends normally carry a ________ balance and are shown in the ________.

A) Debit; Statement of stockholders' equity

B) Debit; Income statement

C) Credit; Balance sheet

D) Debit; Balance sheet

Answer: A

Expenses normally carry a ________ balance and are shown in the ________.

A) Debit; Statement of stockholders' equity

B) Debit; Income statement

C) Credit; Balance sheet

D) Debit; Balance sheet

Answer: B

Liabilities normally carry a ________ balance and are shown in the ________.

A) Debit; Statement of stockholders' equity

B) Debit; Income statement

C) Credit; Balance sheet

D) Debit; Balance sheet

Answer: C

Which of the following is possible for a particular business transaction?

A) Increase assets and decrease liabilities.

B) Decrease one asset and increase another asset.

C) Decrease assets and increase stockholders' equity.

D) Decrease liabilities and increase expenses.

Answer: B

Which of the accounts are decreased on the debit side and increased on the credit side?

A) Liabilities, stockholders' equity, and revenues.

B) Dividends, liabilities, and assets.

C) Expenses, dividends, and stockholders' equity.

D) Assets, dividends, and expenses.

Answer: A

Which of the following is true about a "debit"?

I. It is part of the double-entry procedure that keeps the accounting equation in balance.

II. It represents an increase to assets.

III. It represents a decrease to liabilities.

IV. It is on the right side of a T-account.

A) I and II.

B) IV only.

C) I, II, and III.

D) I, II, III, and IV.

Answer: C