1) A customer's promise to pay in the future for services or goods sold is called a(n) A) Accounts Receivable B) Accounts Payable C) Notes Payable D) Unearned Revenue 2) Which of the following is the final step in the journalizing and posting process? A) Identifying each account affected and its type. B) Determining whether each account has increased or decreased. C) Determining whether the accounting equation is in balance. D) Posting the accounts to the ledger. 3) Which of the following statements is true of revenues?! A) Revenues decrease equity, so a revenue account's normal balance is a debit balance. B) Revenues increase equity, so a revenue account's normal balance is a credit balance. C) Revenues decrease equity, so a revenue account's normal balance is a credit balance. D) Revenues increase equity, so a revenue account's normal balance is a debit balance. 4) Beetles, Inc. recorded the following journal entry on March 2, 2016. Cash Unearned Revenue 4,500 4,500 From the journal entry above, identify the transaction on March 2, 2016. A) Beetles sold goods for $4,500 cash. B) Beetles purchased goods worth $4,500 and signed a one-year note for the same. C) Beetles paid $4,500 for services to be received at a later date. D) Beetles received $4,500 for services to be performed in a later period. 5) Accounts Receivable is a(n) A) liability; debit account and has a normal balance. B) asset; credit C) liability; credit D) asset; debit 6) The percentage of assets that are financed with liabilities can be calculated using the A) accounting equation B) journal C) ledger D) debt ratio 7) Which is a true statement regarding the accounting equation? A) The equation is an optional tool for accountants to use. B) The equation can be stated as assets minus liabilities equals equity. C) The equation does not need to balance during a specific period. D) The equation consists of three parts: assets, liabilities, and net income. 8) A business purchases equipment for $8,000 cash. Which of the following accounts is debited? A) Cash B) Equipment C) Accounts Payable D) Common Stock 9) For Office Supplies, the category of account and its normal balance is A) assets and a credit balance B) liabilities and a credit balance C) assets and a debit balance D) liabilities and a debit balance 10) For Expenses, the category of account and its normal balance is _ A) assets and a credit balance B) equity and a debit balance C) equity and a credit balance D) assets and a debit balance 11) For Retained Earnings, the category of account and its normal balance is A) assets and a debit balance B) assets and a credit balance C) equity and a credit balance D) equity and a debit balance 12) Which one of the following account groups normally has a debit balance? A) liabilities and revenues B) assets and liabilities C) revenues and expenses D) assets and expenses 13) Which of the following sequences is the normal sequence of flow of accounting data? A) Ledger - Journal - Source document B) Source document - Journal -- Ledger C) Source document - Ledger - Journal D) Journal - Source document - Ledger 14) Which of the following accounts increases with a credit? A) Common Stock B) Prepaid Expense C) Accounts Receivable D) Cash 15) A business makes a cash payment to a supplier for office supplies that were purchased earlier on account. Which of the following accounts is debited? A) Cash B) Utilities Expense C) Office Supplies D) Accounts Payable 16) A business makes a payment of $1,400 on a note payable. Which of the following journal entries would be recorded? A) Cash is debited and Financing Revenue is credited for $1,400. B) Notes Payable is credited and Cash is debited for $1,400. C) Cash is credited and Financing Expense is debited for $1,400. D) Cash is credited and Notes Payable is debited for $1,400. 17) A shortened form of the ledger is called a A) T-account C) chart of accounts B) trial balance D) balance sheet 18) Which one of the following account groups normally has a credit balance? A) assets and expenses B) liabilities and revenues C) equity and assets D) assets and liabilities 19) A business purchases $500 of office supplies on account. Which of the following accounts is credited? A) Office Supplies B) Service Revenue C) Cash D) Accounts Payable 20) A business renders services to a customer for $26.000 on account. Which of the following accounts is credited? A) Service Revenue B) Accounts Receivable C) Accounts Payable D) Cash entry for a $ou payment for rent expense was posted as a debit to Salaries Expense and a Cash. Which of the following statements correctly states the effect of the error on the trial balance? A) The sum of the debits will exceed the sum of the credits by $50. B) The sum of the debits will exceed the sum of the credits by $100. C) The sum of the credits will equal the sum of the debits. D) The sum of the credits will exceed the sum of the debits by $100. 22) Which of the following journal entries would be recorded if a business renders service and receives cash of $900 from the customer?! A) Service Revenue Accounts Receivable 900 1 9 00 B) Service Revenue Cash 900 T 900 T 900 C) Cash | Service Revenue 900 1 9 00 D) Service Revenue Accounts Payable 900 23) The following are the current month's balances for Adams Marketing Company. Accounts Payable Revenue Cash Expenses Furniture Accounts Receivable Common Stock Notes Payable $7,000 11,000 3,000 1,500 14,000 14,000 10,250 5,500 What is the net income for Adams Marketing for the current month? A) $9,500 B) $12,500 C) $14,000 D) $11,000