11) Which of the following statements about the rules of debits and credits is CORRECT?
A) An asset is increased by a credit.
B) Dividends are decreased by debits.
C) A liability is increased by a debit.
D) Revenue is increased by a credit.
12) Decreases in stockholders' equity that result from the cost of operating the business are:
A) assets.
B) revenues.
C) expenses.
D) liabilities.
13) An important rule of debits and credits is:
A) credits increase a revenue account.
B) debits decrease an asset account
C) revenues are increased by a debit.
D) expenses are increased by a credit.
14) Which accounts are increased by debits?
A) Cash and Accounts Payable
B) Salaries Expense and Common Stock.
C) Accounts Receivable and Utilities Expense
D) Accounts Payable and Service Revenue
15) Company A received cash and issued stock to a new stockholder. In recording this transaction:
A) Cash would be debited.
B) Common Stock would be debited.
C) Cash would be credited.
D) Retained Earnings would be credited.
16) Complete the following chart indicating if the account is increased with a debit or a credit.
ACCOUNT
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INCREASED WITH A:
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Accounts Receivable
|
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Accounts Payable
|
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Common Stock
|
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Dividends
|
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Service Revenue
|
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Interest Expense
|
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Interest Revenue
|
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Note Payable
|
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Retained Earnings
|
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Inventory
|
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Short-term Investments
|
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