Self Assessment Quizzes

CHAPTER 4: Section 1 Accounts and the Double-Entry Accounting System

	1.	Whether an accounting system is manual or electronic, accounts are grouped together in a

		a.	safe
		b.	ledger
		c.	report
		d.	small building

	2.	The normal balance side is the

		a.	decrease side
		b.	asset side
		c.	liability side
		d.	increase side

	3.	To keep track of accounts, a business develops

		a.	a business plan
		b.	a T account
		c.	a chart of accounts
		d.	a charter

	4.	Assets normally have

		a.	a credit balance
		b.	a decrease on the left side
		c.	a debit balance
		d.	none of the above

	5.	The left side of a T account is always the

		a.	credit side
		b.	debit side
		c.	liability side
		d.	revenue side

	6.	An accounting system that affects at least two accounts is called

		a.	double-entry accounting
		b.	keeping two sets of books
		c.	double-balance accounting
		d.	ledger accounting

	7.	An asset account is increased on the

		a.	debit side
		b.	credit side
		c.	right side
		d.	it depends on which asset account is involved

	8.	For liabilities the increase side is the

		a.	left side
		b.	cash amount
		c.	normal balance
		d.	right side

	9.	The correct order for accounts to be listed in a chart of accounts is

		a.	Revenues, Liabilities, Owner`s Equity, Assets, Expenses
		b.	Expenses, Revenue, Assets, Liabilities, Owner's Equity
		c.	Assets, Liabilities, Owner`s Equity, Revenue, Expense
		d.	Assets, Liabilities, Owner`s Equity, Expenses, Revenue

	10.	Liability and owner`s equity are

		a.	decreased on the credit side
		b.	decreased on the right side
		c.	increased on the credit side
		d.	not handled the same