1Accounts Receivable is a(n)

a.asset.

b.expense.

c.liability.

d.revenue.

2The liability account ______________ is used for short-term liabilities or charge accounts, usually due within 30 days.

a.Liability Payable

b.Accounts Receivable

c.Short-term Payable

d.Accounts Payable

3

Rob Cougar Landscaping has assets of $70,000 and equity of $30,000. Determine the amount of liabilities in the business.

a.$100,000

b.$50,000

c.$40,000

d.None of these listed answers are correct.

4

When the rent for the business is paid with a check,

a.Cash is decreased and Accounts Payable is decreased.

b.Cash is decreased and Rent Income is increased.

c.Cash is decreased and Rent Expense is decreased.

d.Cash is decreased and Rent Expense is increased.

e.Cash is increased and Rent Expense is decreased.

5

When a company pays salaries to an assistant,

a.assets increase.

b.liabilities increase.

c.owner's equity increase.

d.expenses increase.

6

Michael has $120,000 invested in his business. The business owes creditors $20,000. Determine the amount of assets in the business.

a.$120,000

b.$100,000

c.$20,000

d.$140,000

7

The owner's right, claim, or financial interest is referred to as

a.business entity.

b.assets.

c.revenues.

d.equity.

8

Which of the following transactions does not include an increase to expenses?

a.Received and paid the phone bill

b.Bought advertising for cash

c.Paid monthly rent

d.Received cash for services performed

e.Paid the week's wages