4 multiple choice Question

41 (2 points)Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. The effect of this transaction include:

a

Liabilities increase by $75,000 and expenses decrease by $75,000.

b

Assets increase by $75,000 and expenses decrease by $75,000.

c

Assets decrease by $75,000 and expenses decrease by $75,000.

d

Assets increase by $75,000 and expenses increase by $75,000.

e

Assets increase by $75,000 and liabilities increase by $75,000.

42 (2 points)Which of the following accounts typically do not require end-of-period adjustments?

a

Accrued expenses

b

Depreciable assets

c

All of these examples require end-of-period adjustments

d

Cash

e

Prepaid expenses

43 (2 points)The internal document prepared by a department manager that informs the purchasing department of its needs that lists the merchandise needed and requests that it be purchased is the

a

Invoice.

b

Invoice approval.

c

Receiving report.

d

Purchase requisition.

e

Purchase order.

44 (2 points)Which of the following statements is incorrect?

a

The normal balance of an expense account is a credit.

b

The normal balance of accounts receivable is a debit.

c

The normal balance of unearned revenues is a credit.

d

The normal balance of owner's withdrawals is a debit.

e

The normal balance of the owner's capital account is a credit.