Consider the following list of accounts:

Cash

Service Revenue

Salaries Expense

Accounts Payable

Equipment

Retained Earnings

Utilities Expense

Accounts Receivable

Common Stock

Dividends

How many of these accounts have a normal debit balance?

A) Four.

B) Five.

C) Six.

D) Seven.

Answer: C

Consider the following list of accounts:

Accounts Payable

Cash

Prepaid Rent

Common Stock

Salaries Payable

Equipment

Supplies

Rent Expense

How many of these accounts have a normal credit balance?

A) Two.

B) Three.

C) Four.

D) Five.

Answer: B

An increase to an asset account is shown with a ________. An increase to a liability account is shown with a ________.

A) Debit; Debit

B) Credit; Debit

C) Debit; Credit

D) Credit; Credit

Answer: C

An increase to an expense account is shown with a ________. An increase to a revenue account is shown with a ________.

A) Debit; Debit

B) Debit; Credit

C) Credit; Debit

D) Credit; Credit

Answer: B

An increase to an asset account is shown with a ________. A decrease to an asset account is shown with a ________.

A) Debit; Debit

B) Credit; Debit

C) Debit; Credit

D) Credit; Credit

Answer: C

Which of the accounts are increased with a debit and decreased with a credit?

A) Liabilities, stockholders' equity, and revenues.

B) Dividends, liabilities, and assets.

C) Expenses, dividends, and stockholders' equity.

D) Assets, dividends, and expenses.

Answer: D

Which of the following accounts has a debit balance?

A) Accounts Payable.

B) Deferred Revenue.

C) Service Revenue.

D) Salaries Expense.

Answer: D