CHAPTER 5:
Section 1 Relationship of Revenue, Expenses, and Withdrawals to Owner’s Equity
1.
Withdrawals is increased on the
a.
debit side
b.
credit side
c.
does not have a normal balance
d.
does not increase
2.
Revenue is increased on the
a.
debit side
b.
credit side
c.
depends on the revenue source
d.
asset account
3.
Revenue
a.
increases owner`s capital
b.
decreases owner`s capital
c.
has no effect on owner`s capital
d.
is affected by owner`s contribution
4.
The Utilities Expense account would
a.
decrease on the debit side
b.
increase on the credit side
c.
not show a debit or credit
d.
increase on the debit side
5.
Revenue, expense, and withdrawals accounts are called
a.
permanent accounts
b.
capital accounts
c.
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d.
temporary capital accounts
6.
The accounts used to collect information for a single accounting period are
a.
revenue, owner`s capital, and liability
b.
asset, owner`s capital, and liability
c.
revenue, expense, and owner`s withdrawal
d.
revenue, expense, and owner`s capital
7.
When an account balance continues from one accounting period to the next, it is called a
a.
continuous balance
b.
relative balance
c.
permanent account
d.
temporary capital account