21. What the company owns or controls and expects to gain value from is defined as:
- Equity
- A Liability
- An Asset
24. A way of bookkeeping that tracks which accounts increase and which decrease for a given transaction is known as:
- Multiple-entry
- Double-entry
- Single-entry
25. Which of the following best defines a credit as it’s used in double-entry accounting?
- A decrease in assets/expenses and an increase in liabilities/owner’s equity and revenue.
- An increase in liabilities/expenses and a decrease in assets/owner’s equity and revenue.
- An increase in assets/owner’s equity and income and a decrease in liabilities/expenses.
- An increase in assets/expenses and a decrease in liabilities/owner’s equity and revenue.
26. Which of the following best defines a debit as it’s used in double-entry accounting?
- An increase in assets/expenses and a decrease in liabilities/owner’s equity and revenue.
- An increase in liabilities/expenses and a decrease in assets/owner’s equity and revenue.
- A decrease in assets/expenses and an increase in liabilities/owner’s equity and revenue.
- An increase in assets/owner’s equity and income and a decrease in liabilities/expenses.
27. You purchased inventory from your vendor and paid cash. The accounts affected are the inventory account and the cash account. In your journal entry, which account would you debit?
- Inventory account
- Cash account
28. An owner invests $1000 in the company. This transaction impacted the checking account and the owner’s equity account. In your journal entry, which account do you credit?
- Checking account
- Owner’s equity account
Shuffle Q/A 3
29. A sales manager purchases office supplies with the company credit card. This transaction impacts the accounts payable and the office supplies accounts. In your journal entry, which account do you credit?
- Office supplies account
- Accounts payable
30. The company pays off the credit card bill. This transaction impacts the accounts payable and the cash accounts. In your journal entry, which account do you credit?
- Cash account
- Accounts payable