18) The usual balance in a Contra-Revenue account is a: A) DR B) It depends C) CR

19) Below is the company's Cash T-account. Cash Beg. 1,200 5,200 3,100 End. 3,300 The $5,200 amount could represent which of the following? A) Ending balance of cash. B) Purchase of supplies on account. C) Collection from customers. D) Payment for salaries.

20) ABC reports the following information for the year: Net credit sales $120,000 Average accounts receivable 20,000 Cash collections on credit sales 100,000 What is ABC's receivables turnover ratio? A) 5.0. B) 1.2. C) 0.2. D) 6.0.

21) For a journal entry with only two lines, the following entry is valid: Increase in a Liability, Decrease Owners' Equity. A) True B) False

22) When the company pays stockholders a dividend, what is the effect on the accounting equation for that company? A) Decrease assets and decrease liabilities. B) Decrease assets and decrease stockholders' equity. C) Decrease stockholders' equity and increase assets. D) Increase liabilities and increase assets.

23) Which of the following would increase assets and increase liabilities? A) Provide services to customers on account. B) Purchase office supplies on account. C) Pay dividends to stockholders. D) Receive a utility bill but do not pay it immediately. 3

24) Which of the following are classified as Accounts Receivable? (This question may have multiple answers) A) Tax refunds owed to us by the IRS. B) Monies that customers owe us for providing a service. C) Monies that customers owe us from sale of merchandise. D) Loans we made to a customer.

25) For a journal entry with only two lines, the following entry is valid: Increase in a liability, Increase in an Expense. A) True B) False