25.Accounts payable and accounts receivables are opposites. Single choice.

(1 Point)

True

False

26.Analyzing is the first step in the accounting cycle. Single choice.

(1 Point)

True

False

27.Income increases equity. Single choice.

(1 Point)

True

False

28.Which of the following is not a revenue account?. Single choice.

(1 Point)

rent income

interest income

owner's drawing

service income

29.Assets are the resources that the entity owns. Single choice.

(1 Point)

True

False

30.The following items are normally credit except. Single choice.

(1 Point)

Baldado, Capital

Unearned rent income

Notes receivable

Service Income

31.The following items are normally debit except. Single choice.

(1 Point)

Accounts receivable

Cash

Bad debts expense

Accounts payable

32.Adjusting entries are made to ensure that. Single choice.

(1 Point)

assets, liabilities, income and expenses have correct balances at the end of the accounting period

revenues and expenses are recognized in the period in which they are earned and incurred

part of the asset that has been used up is recognized as expenses

all of the above are correct

33.Decrease in liabilities will probably. Single choice.

(1 Point)

increase in asset

decrease in capital

increase in expense

increase revenue

34.The gross increases in capital attributable to business activities are called. Single choice.

(1 Point)

assets

liabilities

expenses

revenues

35.Which of the following is not an asset?. Single choice.

(1 Point)

accounts payable

cash

prepaid rent

store equipment

36.Which of the following indicates a net income?. Single choice.

(1 Point)

Asset > Liabilities

Revenue > Expenses

Liabilities < Cash

Owner's Equity > Liabilities

37.Increase in cash coming from the owner as his additional investment in the business. Single choice.

(1 Point)

True

False

38.Adjusting entries are the same with correcting entries. Single choice.

(1 Point)

True

False

39.The cost of insurance paid in insuring a business is recorded as insurance expense. Single choice.

(1 Point)

True

False

40.Which of the following accounts is a capital account?. Single choice.

(1 Point)

Cash

Accounts payable

Drawings account

Prepaid Insurance

41.If total credits exceed total debits, the account has a debit balance. Single choice.

(1 Point)

True

False