41) Which of the following statements regarding accounts is true?
A) Assets are decreased by debits.
B) Expenses are decreased by debits.
C) Revenues are increased by debits.
D) Liabilities are decreased by debits.
42) Which of the following accounts normally has a debit balance?
A) Dividends
B) Retained Earnings
C) Share capital
D) Revenue
43) The account credited when supplies are purchased on account is:
A) Cash
B) Supplies
C) Supplies Expense
D) Accounts Payable
44) When the owner of a business invests cash into the business, which of the following accounts is debited?
A) Dividends
B) Cash
C) Common Shares
D) Accounts Receivable
45) When a business sells inventory in exchange for cash, which of the following accounts is credited?
A) Revenue
B) Cash
C) Owners' Equity
D) Accounts Payable
46) The account credited when cash is received from a customer on account is:
A) Cash
B) Accounts Payable
C) Revenue
D) Accounts Receivable
47) A debit increases the balance of which types of accounts?
A) assets and liabilities
B) assets and expenses
C) liabilities and expenses
D) assets and shareholders' equity
48) A credit decreases the balance of which types of accounts?
A) expenses and assets
B) liabilities and expenses
C) assets and liabilities
D) assets and shareholders' equity
49) A credit increases the balance of which types of accounts?
A) revenue and assets
B) liabilities and assets
C) liabilities and expenses
D) shareholders' equity and liabilities
50) Which type of account is credited when a company pays its employees?
A) an expense account
B) an asset account
C) a liability account
D) the owner's equity account