Base your answers to questions 16 through 25 on information given in previous study units in this Accounting program.

16. An owner's investment in a firm may be classified as a/an

A. use of funds.

B. source of funds.

C. source of income.

D. additional expense.

17. An example of a debit entry is

A. an increase in an asset account.

B. an increase in a liability account.

C. a decrease in an asset account.

D. an increase in a capital account.

18. The post-closing trial balance would include which one of the following accounts?

A. Cash

B. Sales

C. Salary Expense

D. Interest Income

19. The form listing the balance and titles of the accounts in the ledger on a given date is the

A. income statement.

B. capital statement.

C. trial balance.

D. retained earnings statement.

20. If revenue was $55,000, expenses were $47,500, and the owner's withdrawals were $12,000, the amount of net income or net loss would be

A. $55,000 (net income).

B. $7,500 (net income).

C. $47,500 (net loss).

D. $4,500 (net loss).

21. If, during an accounting period, assets increased by $80,000 and owner's equity decreased by $15,000, what change occurred to the total liabilities?

A. A decrease of $65,000

B. An increase of $15,000

C. An increase of $95,000

D. An increase of $80,000

22. The journal is the book in which a complete transaction is originally recorded. At the end of the accounting period, the information in the journal must be put into the individual records in the ledger. This transferring process is called

A. journalizing.

B. balancing.

C. extending.

D. posting.

23. The Supplies account has a balance of $810 at the beginning of the year and was debited during the year for $1,950, representing the total of supplies purchased during the year. If $650 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year would be

A. $650.

B. $710.

C. $2,050.

D. $2,110.

24. A business enterprise pays weekly salaries of $20,000 every Friday for the five-day week ending on that day. If the fiscal period happens to end on a Thursday, an adjusting entry would be necessary. This adjusting entry would consist of

A. debit Salaries Expense, $4,000; credit Salaries Payable, $4,000.

B. debit Salaries Expense, $16,000; credit Salaries Payable, $16,000.

C. debit Salaries Payable, $4,000; credit Salaries Expense, $4,000.

D. debit Salaries Payable, $16,000; credit Salaries Expense, $16,000.

25. After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the Debit and Credit columns are $874,038 and $800,438, respectively. What is the amount of net income or net loss for the period?

A. $73,600 (net loss)

B. $73,600 (net income)

C. $126,838 (net loss)

D. $36,800 (net income)