Consider the following accounts:

Dividends

Insurance Expense

Cash

Service Revenue

How many of these accounts are increased with credits?

A) One.

B) Two.

C) Three.

D) Four.

Answer: A

When viewing a company's accounting records, the terms "debit" and "credit" would typically be seen in which location?

A) Financial statements

B) Source documents

C) Chart of accounts

D) Journal

Answer: D

Cooper Law Offices has the following source document from one of its suppliers:

Allen Office Supplies

Description Quantity Price per unit Total

Legal paper 100 $ 15 $ 1,500

Ink cartridge 40 $ 30 $ 1,200

$ 2,700

Invoice Number: #127874

Date of purchase: January 17, 2021

Payment due: 30 days from date of purchase

What should Cooper record on the date of the purchase?

A) Debit Cash; Credit Accounts Receivable for $2,700.

B) Debit Supplies; Credit Accounts Payable for $2,700.

C) Debit Accounts Payable; Credit Cash for $2,700.

D) Debit Accounts Receivable; Credit Sales Revenue for $2,700.

Answer: B

The term commonly used in accounting to describe the format for recording a transaction is:

A) Chart of accounts.

B) Trial balance.

C) General ledger.

D) Journal entry.

Answer: D

Consider the following accounts:

Utilities Expense

Accounts Payable

Service Revenue

Common Stock

How many of these accounts are increased with debits?

A) One.

B) Two.

C) Three.

D) Four.

Answer: A

Which one of the following accounts will have a normal credit balance?

A) Dividends.

B) Salary Expense.

C) Supplies.

D) Common Stock.

Answer: D

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