1. Cash receipts from interest and dividends are classified as

a. financing activities.

b. investing activities.

c. operating activities.

d. either financing or investing activities.

2. Which of the following is not true of the terms debit and credit?

a. They can be abbreviated as Dr. and Cr.

b. They can be interpreted to mean increase and decrease

c. They can be used to describe the balance of an account.

d. They can be interpreted to mean left and right.

3. An account will have a credit balance if the

a. credits exceed the debits.

b. first transaction entered was a credit.

c. debits exceed the credits.

d. last transaction entered was a credit.