Multiple choice

1. Generally accepted accounting principles are a. income tax regulations of the Internal 

a. Revenue Service. 

b. standards that indicate how to report economic events. 

c. theories that are based on physical laws of the universe. 

d. principles that have been proven correct by academic researchers. 

2. Which one of the following is not a part of an account? 

a. Credit side 

b. Trial balance 

c. Debit side 

d. Title 

3. Credits 

a. decrease both assets and liabilities. 

b. decrease assets and increase liabilities. 

c. increase both assets and liabilities. 

d. increase assets and decrease liabilities. 

4. A debit to an asset account indicates a

a. an error.

 b. a credit was made to a liability account. 

c. a decrease in the asset. 

d. an increase in the asset.