1 1 2 3 3 4 5 1 A credit is used to record an increase in all of the following accounts except A Utility Expense B Share Capital C Accounts Payable D Service Revenue 2 Generally, all of the following financial statements can be prepared with information from the trial balance except A Income Statement B Statement of Cash Flows C Statement of Retained Earnings D Statement of Financial Position 3 The Dividends account is increased with a debit because dividends A are an expense Bare declared an asset C reduce liabilities D result in a decrease in equity, so debiting Dividends would have the effect of decreasing Equity 4 When a company pays cash for a truck, what is the effect on the accounting equation for that company A Increase assets and increase liabilities B Decrease assets and decrease liabilities C Increase assets and increase equity D No net change 5 Gordon Company was recently formed with a $5,000 investment in the company by shareholders The company then borrowed $2,000 from a bank, purchased $1 000 of supplies on account, and also purchased $5,000 of equipment by paying $2,000 in cash and signing a note for the balance Based on these transactions, the company's total assets are A $7,000 B $9,000 C $11,000 D $12,000 E

Question

1 1  2  3  3  4  5  1  A credit is used to record an increase in all of the following accounts except A  Utility Expense B  Share Capital C  Accounts Payable  D  Service Revenue  2  Generally, all of the following financial statements can be prepared with information from the trial balance except A  Income Statement  B  Statement of Cash Flows  C Statement of Retained Earnings  D  Statement of Financial Position 3  The Dividends account is increased with a debit because dividends A  are an expense  Bare declared an asset  C  reduce liabilities D  result in a decrease in equity, so debiting Dividends would have the effect of decreasing Equity  4  When a company pays cash for a truck, what is the effect on the accounting equation for that company  A  Increase assets and increase liabilities  B  Decrease assets and decrease liabilities  C  Increase assets and increase equity  D  No net change 5  Gordon Company was recently formed with a $5,000 investment in the company by shareholders  The company then borrowed $2,000 from a bank, purchased $1 000 of supplies on account, and also purchased $5,000 of equipment by paying $2,000 in cash and signing a note for the balance  Based on these transactions, the company's total assets are A  $7,000  B  $9,000 C  $11,000  D  $12,000  E

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1 1. 2. 3. 3. 4. 5. 1. A credit is used to record an increase in all of the following accounts except A. Utility

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