Question 1

1. An increase in a liability is done by a. (2.5 marks)
2. An increase in an asset account is done by a (2.5 marks)
3. A decrease in liability is done by a (2 .5marks)
4. A decrease in an asset is done by a (2.5 marks)
5. An increase in revenue is done by a (2 .5marks)
6. If you receive a telephone bill, is your expense increasing or decreasing? (2.5 marks)
7. If you pay salaries, is your expense increasing or decreasing? (2.5 marks)
8. If you purchase a motor vehicle, is your asset value increasing or decreasing? (2.5 marks)
9. If you take out a bank loan is your liability increasing or decreasing? (2.5marks)
10. If you refund fees paid by a customer is your revenue increasing or decreasing? (2.5 marks)

(Total 25 marks)