Account types and normal balances quiz

1. 1.Which account normally has a credit balance?

   Accounts PayableRent ExpenseOwner DrawingsSupplies
2. 2.Which account appears on the income statement?

   Prepaid InsuranceUtilities ExpenseOwner CapitalNotes Payable
3. 3.Accumulated Depreciation is best described as:

   A contra asset with a normal credit balanceAn expenseAn asset with a normal debit balanceA liability
4. 4.Cash in the business bank account is:

   EquityRevenueAn assetA liability, because the bank owes it
5. 5.In a typical chart of accounts, account 2xxx would usually be:

   RevenueExpensesLiabilitiesAssets
6. 6.A temporary account is one that:

   Is used only for a single transactionHas no normal balanceAppears only on the trial balanceIs closed to zero at period end
7. 7.Which appear on the balance sheet? Select all that apply.

   Wages PayableCost of Goods SoldAllowance for Doubtful AccountsInventory

   Select all that apply.

8. 8.Match each account to its normal balance.

   Notes PayableChoose…DebitCreditEquipmentChoose…DebitCreditSales DiscountsChoose…DebitCreditOwner CapitalChoose…DebitCreditAllowance for Doubtful AccountsChoose…DebitCredit
9. 9.Interest Payable is a:

   ExpenseContra liabilityRevenue accountCurrent liability
10. 10.An account showing a balance opposite to its normal side usually means:

    The account is temporaryThe trial balance won't balanceSomething to investigate, such as an error or overpaymentThe books are definitely correct
11. 11.Cost of Goods Sold belongs to which type?

    Contra revenueLiabilityExpenseAsset
12. 12.Sales Returns and Allowances is:

    An expense with a normal debit balanceA liabilityRevenue with a normal credit balanceContra revenue with a normal debit balance
13. 13.Which account normally has a debit balance? Select all that apply.

    Wages ExpenseOwner DrawingsService RevenueAccounts Receivable

    Select all that apply.

14. 14.Which statement about Owner Drawings is true?

    It is closed directly to Owner CapitalIt has a normal credit balanceIt increases owner's equityIt is an operating expense
15. 15.Supplies purchased but not yet used are recorded as:

    Supplies (asset)Accounts PayableOwner CapitalSupplies Expense
16. 16.Match each account to its type.

    Unearned RevenueChoose…AssetLiabilityEquityRevenueExpensePrepaid RentChoose…AssetLiabilityEquityRevenueExpenseOwner DrawingsChoose…AssetLiabilityEquityRevenueExpenseInterest RevenueChoose…AssetLiabilityEquityRevenueExpenseDepreciation ExpenseChoose…AssetLiabilityEquityRevenueExpense

Explanations for every option appear after you submit. Account types and normal balances quiz is self-practice, not a proctored test.