Reference no: EM132380788

Question

1. Assets carry a normal __________________________ balance

2. To increase an asset account, you ____________________ (debit or credit) it.

3. Liabilities carry a normal ________________________ balance

4. To increase a liability account, you __________________ (debit or credit) it.

5. What is a contra account?

6. List three contra accounts.

7. What is a unearned (deferred) revenue account?

8. List two different accounts that a business may have in unearned revenue.

9. What is a deferred liability account?

10. List two different deferred liability accounts.

11. What type of account balance does Retained Earnings carry? (Debit or Credit?)

12. Do dividends increase or decrease retained earnings?

13. What kind of account is purchase allowance?

14. If a business utilized the periodic method of inventory - how does the business calculate Cost of Goods Sold?

15. What is the normal balance in the cost of goods sold account? (debit or credit)