2-2 Objective Demos

Question 1

Identify the account type, whether it is permanent or temporary, and the normal balance:

Cash

Answer 1

Account Type: Asset
Permanent
Normal Balance: Debit

Question 2

Identify the account type, whether it is permanent or temporary, and the normal balance:

Accounts Receivable

Answer 2

Account Type: Asset
Permanent
Normal Balance: Debit

Question 3

Identify the account type, whether it is permanent or temporary, and the normal balance:

Accounts Payable

Answer 3

Account Type: Liability
Permanent
Normal Balance: Credit

Question 4

Identify the account type, whether it is permanent or temporary, and the normal balance:

Notes Payable

Answer 4

Account Type: Liability
Permanent
Normal Balance: Credit

Question 5

Identify the account type, whether it is permanent or temporary, and the normal balance:

Common Stock

Answer 5

Account Type: Stockholder’s Equity
Permanent
Normal Balance: Credit

Question 6

Identify the account type, whether it is permanent or temporary, and the normal balance:

Dividends

Answer 6

Account Type: Stockholder’s Equity
Temporary
Normal Balance: Debit

Question 7

Identify the account type, whether it is permanent or temporary, and the normal balance:

Sales Revenue

Answer 7

Account Type: Stockholder’s Equity
Temporary
Normal Balance: Credit

Question 8

Identify the account type, whether it is permanent or temporary, and the normal balance:

Interest Revenue

Answer 8

Account Type: Stockholder’s Equity
Temporary
Normal Balance: Credit

Question 9

Identify the account type, whether it is permanent or temporary, and the normal balance:

Cost of Goods Sold

Answer 9

Account Type: Stockholder’s Equity
Temporary
Normal Balance: Debit

Question 10

Identify the account type, whether it is permanent or temporary, and the normal balance:

Interest Expense

Answer 10

Account Type: Stockholder’s Equity
Temporary
Normal Balance: Debit