Quiz (100 marks, 4 mark per each blank)
1 write down accounting equation！basic form and expanded form，.
2 When a transaction occurs, the total assets of the business may change, so the equation will not remain in balance. ！T for true(F for false， ( )
3 If total assets increased $16,000 during a period and total liabilities decreased $5,500 during the same period. Determine the amount of the change in owner’s equity for that period
would be: ( )
4 Determine the net effect of transaction: invested cash and supplies in a business.
listed below, using I=increase; D=decrease; NE=no effect:
?asset account: ( )
?liability account: ( )
?capital account: ( )
5 Determine if the following transactions have effect on capital:！T or F，
?Bought a machine by cash. ( )
?Received income for selling goods. ( )
6 The usual order for the asset section of a balance sheet is: ( ) a. Current assets, prepaid expenses, long-term investments, intangible assets. b. Long-term investments, current assets, plant assets, intangible assets. c. Current assets, long-term investments, plant assets, intangible assets. d. Intangible assets, current assets, long-term investments, plant assets
7 ?Rent expenses should be written in income statement. ( )
?Liability should be written in balance sheet. ( )
?Asset should be written in statement of owner’s equity. ( )
?Owner’s withdrawall shoulc be written in statement of owner’s equity. ( )
?Sale revenues should be written in balance sheet. ( )
8 Which of the following statements is correct? ( ) a. The left side of a T-account is the credit side.
b. Entries that decrease asset accounts, or increase liability accounts are posted as debits. c. The left side of a T-account is the debit side.
d. Entries that increase asset accounts and decrease liability accounts are posted as credits.
9 In each of the following types of T accounts, enter an increase (by writing +)and a decrease (by writing -)
Dr. Cr. Dr. Cr.
Dr. Cr. Dr. Cr.
10 Decreases in all liability accounts should be debited.！T or F， ( )
11 Increases in all asset accounts should be credited. ！T or F， ( )
12 Filling the blanks with Debited or Credited:
? When account payable is increased, the account should be: ( )
?When account receivable is decreased, the account should be: ( )