Answer all 10 multiple choice questions :

1.)If the company is profitable the owners equity account will have:

A zero balance

There is no normal balance

A debit balance

A credit balance

2.)An account that starts with a 1 will indicate to the reader that the account is:

Expense

Owners Equity

Revenue

An Asset

A Liability

3.)An asset account will normally have:

There is no normal balance

A debit balance

A credit balance

A zero balance

4.)The Income Statement includes the following accounts:

Cash and Revenue

Revenues, Expenses, & Owners Equity

Revenue and Expenses

Assets, Liabilities, & Owners Equity

Expenses and Liabilities

5.)Current liabilities include:

None of these

Wages Payable

Notes Payable

All of these

Accounts Payable

6.)Recording a debt to accounts payable will:

Depend on the current balance as to if it increases/decreases

Decrease the account balance

Have no effect on the account balance

Increase the account balance

7.)Your company receives $250 from a customer in payment of an invoice. The transaction should be recorded as:

Credit of $250 to Cash, Debit of $250 to Accounts Receivable

Debit of $250 to Cash, Credit of $250 to Accounts Receivable

Debit of $250 to Cash, Credit of $250 to Sales

Credit of $250 to Cash, Debit of $250 to Sales

Credit of $250 to Accounts Receivable, Debit of $250 to Sales

8.)Recording a debit to cash will:

Increase the account balance

Decrease the account balance

Have no effect on the account balance

Depend on the current balance as to if it increases/decreases

9.)An expense account will normally have:

A credit balanceA zero balance

There is no normal balance

A zero balance

A debit balance

10.)Information from the following accounts would be included in the Income Statement:

Stock, Depreciation, Utilities Expense

Cash, Sales, Notes Payable

Sales, Depreciation, Accounts Payable

Wages Expense, Supplies Expense, Sales

Accounts Payable, Accounts Receivable, Cash