9. A company purchased a TV for $1,000.00 using the company credit card. Which of the following is the best description of the transaction?

a. Decrease in assets/Decrease in accounts payable

b. Decrease in assets/Increase in accounts payable

c. Increase in assets/Decrease in accounts payable

d. Increase in assets/Increase in accounts payable

10. Which of the following needs to be created in order to verify that all debit balances equal to the total credit balances?

a. Journal report

b. Cash balance

c. Monthly statement

d. Trial balance

11. Which of the following best describes the function of accounts payable?

a. Track and receive company expenses

b. Track businesses

c. Track and pay company expenses

d. Track a companys sales

12. What is the definition of revenue?

a. Proceeds from sales

b. An invoice

c. An agreement

d. Bank statement

13. What are the months that define a calendar year in the accounting cycle?

a. January December

b. April March

c. July June

d. October September

14. What is a liability?

a. Debt or legal obligation

b. Debt or financial obligation

c. Promissory note

d. Assets and equity

15. What is the definition of an equity?

a. Debts due within a year of the balance statement date

b. Owners rights to the assets of their business

c. Increases in the owners assets

d. Debts owed by business