Self Assessment Quizzes

CHAPTER 4: Section 2 Applying the Rules of Debit and Credit

	1.	If an owner transferred a desk from his home to the company, the Delivery Equipment account would have an entry on

		a.	increase side
		b.	decrease side
		c.	right side
		d.	does not affect this account

	2.	The accounts affected if a company sold a file cabinet on account to another company for $150 are

		a.	Cash and Office Equipment
		b.	Cash and Accounts Payable
		c.	Office Equipment and Accounts Receivable
		d.	none of the above

	3.	If a company received a check for $1,500 for payment of a telephone system they sold last month the accounts affected would be

		a.	Accounts Payable and Cash
		b.	Cash and Revenue
		c.	Cash and Accounts Receivable
		d.	Accounts Receivable and Revenue

	4.	The accounts affected if a company mailed a check for $350 as the first installment payment on a truck they purchased are

		a.	Accounts Receivable and Cash
		b.	Accounts Receivable and Owner`s Equity
		c.	Cash and Owner`s Equity
		d.	none of the above

	5.	The accounts affected when an owner took 2 telephones from her home and transferred them to the business are

		a.	Cash and Equipment
		b.	Owner`s Equity and Cash
		c.	Equipment and Owner`s Equity
		d.	Assets and Liabilities

	6.	The accounts affected if a company wrote a check for $10,000 for a computer system are

		a.	Computer Equipment and Cash
		b.	Computer Equipment and Owner`s Equity
		c.	Computer Equipment and Accounts Receivable
		d.	Computer Equipment and Accounts Payable

	7.	The accounts affected if an owner took $25,000 from personal savings and deposited that amount in a business checking account are

		a.	Cash and Accounts Receivable
		b.	Cash and Accounts Payable
		c.	Owner`s Equity and Accounts Payable
		d.	Cash and Owner`s Equity

	8.	If an owner took a $10,000 withdrawal from the company, the Cash account would have an entry on the

		a.	increase side
		b.	decrease side
		c.	normal balance side
		d.	side out

	9.	If a company wrote a check for $500 for the first installment payment for a copy machine they purchased the Accounts Payable account would

		a.	increase
		b.	decrease
		c.	not be affected
		d.	credited

	10.	If a company issued a check for $12,000 for the purchase of a used pick up truck, the Delivery Equipment account would be

		a.	debited
		b.	credited
		c.	unaffected
		d.	overdrawn