1.Which account should be filled when a companys cash account is increased? a. debit b. credit

2. Which is the normal balance for contra asset accounts? a. debit b. credit

3. Which contra-asset account is an accumulated depreciation? a. debit b. credit3.

5. Which account should be filled when a companys capital is increased? a. debit b. credit

6.What happens to the owners assets when the company receives cash from a bank loan?

a. Increase

b. Decrease

c. No effect

7. What will happen to the companys liquidity when some of its products are sold from inventory?

a. Increase

b. Decrease

c. No effect

8. What happens to the owners equity when the company receives cash?

a. Increase

b. Decrease

c. No effect

9. What happens to the owners assets when the company repays the bank that had lent?

a. Increase

b. Decrease

c. No effect

10. What happens to the owners assets when the company purchases equipment with its cash?

a. Increase

b. Decrease

c. No effect

11. What happens to the owners equity when the owner invests personal cash in the business?

a. Increase

b. Decrease

c. No effect