Types Of Accounts

Question 1

What is an asset?

Answer 1

An asset is any item of economic value owned by an individual or business that can be converted to cash.

Question 2

What is Owner’s Equity?

Answer 2

Owner’s Equity is the owner’s account in a business.

Question 3

What is a Liability?

Answer 3

A liability is a business’s debts or obligations that arise during the course of business operations.

Question 4

Which side is debit?

Answer 4

Debit is on the left side.

Question 5

On which side does an asset account increase or decrease?

Answer 5

An asset account increases on the debit side and decreases on the credit side.

Question 6

Which side is credit?

Answer 6

Credit is on the right side.

Question 7

On which side does an Owner’s Equity account increase or decrease?

Answer 7

An Owner’s Equity account increases on the credit side and decreases on the debit side.

Question 8

On which side does a Liability account increase or decrease?

Answer 8

A Liability account increases on the credit side and decreases on the debit side.

Question 9

Which category will vehicles fall under?

Answer 9

Assets

Question 10

Which category will land and buildings fall under?

Answer 10

Assets

Question 11

Which category will equipment fall under?

Answer 11

Assets

Question 12

Which category will bank fall under?

Answer 12

Assets

Question 13

Which category will petty cash fall under?

Answer 13

Assets

Question 14

Which category will cash float fall under?

Answer 14

Assets

Question 15

Which category will capital fall under?

Answer 15

Owner’s Equity

Question 16

Which category will drawings fall under?

Answer 16

Owner’s Equity

Question 17

Which category will income fall under?

Answer 17

Owner’s Equity

Question 18

Which category will expenses fall under?

Answer 18

Owner’s Equity

Question 19

Which category will creditors fall under?

Answer 19

Liabilities

Question 20

Which category will loans fall under?

Answer 20

Liabilities