1. Which of the following applications of the rules of debit and credit is true?

a. Increase Accounts Payable with a credit and the normal balance is a debit

b. Decrease Cash with a debit and the normal balance is a credit

c. Decrease Prepaid Insurance with a credit and the normal balance is a credit

d. Increase Equipment with a debit and the normal balance is a debit

2.

A debit signifies a decrease in

a. drawing

b. revenues

c. expenses

d. assets

3. Which of the following describes the classification and normal balance of the fees earned account?

a. liability, credit

b. revenue, credit

c. asset, credit

d. owner's equity, debit

4 A trial balance is prepared to

a. prove that no errors were made in posting to the ledger

b. prove that there were no errors made in recording transactions into the journal

c. discover errors that affect the equality of debits and credits

d. prove that each account balance is correct