A Aaisha Al Shuai Financial Accounting. Test -1 Spring 2021.. Word T 14 - A Aa A A -A-D-A : 1 x x 1. Which of the following is not one of the three forms of business organization? a. Corporations b. Partnerships c. Proprietorships d. Investors 2. The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is termed a(n) a. account payable b. account receivable, C. revenue d. expense. 3. The right to receive money in the future is called a(n) a. account payable b. account receivable c. liability d. revenue 4. Salem's Accessory Shop started the year with total assets of $210,000 and total liabilities of $120,000. During the year the business recorded $330,000 in revenues, $165,000 in expenses, and dividends of $60,000. The net income reported by Salem's Accessory Shop for the year was a. $120,000 b. $150,000 A Aaisha Al Shuai Financial Accounting. Test -1 Spring 2021.. Word T - A Aa A A 1-A 1 1 -A-D-A x x 20. Omer Company showed the following balances at the end of its first year: Cash $ 14,000 Prepaid insurance 1,400 Accounts receivable 7.000 Accounts payable 5,600 Notes payable 8.400 Share capital-ordinary 2.800 Dividends 1,400 Revenues 42.000 Expenses 35,000 What did Omer Company show as total credits on its trial balance? a. $60,200 b.$58,800 c.$57,400 d. $61,600 21. A broad rule adopted by the accounting profession as a guide in measuring, recording, and reporting the financial affairs and activities of a business is known as a. an accounting concept. b. an accounting principle. c. the basic accounting equation d objectivity principle. 22. Assets total $50,000 and Liabilities total $10,000. The equity of the business must total a. $4,000 b. $40,000 c. $400 d. $40