C. Statement of cash lows 9 ewD. Balance sheet Total assets and total liabilities of a company are reported on wbich of the following A. Income statement C. Statement of cash flows 10. A statement of cash flows will repoet cash flows from which of the following activities B.Balance sheet D. Statement of owner's equity A. Operating activities C. Financing activities 11. When cash is received from a customer in payment of an account receivable, how are the elements B. lavesting aetivities DAll of the above 20 of the accounting equation affected? A. Decrease assets (cash) and increase assets (accounts receivable) B. Increase assets (cash) and decrease assets (accounts receivable) C. Increase assets and increase liabilities D. Increase assets and increase equity 12. The owner's investment of cash in the eompany will result in which of the following? A. An increase in cash and a decrease in equity An increase in cash and an increase in equity C.A decrease in cash and a decrease in liabilities D. An increase in fees earned and an increase in equity 13. Purchasing equipment on account (payment to be made in the future) will have what effect on the elements of the accounting equation? A. Increase in equipment (assets) and a decrease in equity. B. Increase in equipment (assets) and an inerease in equity C. Increase in equipment (assets) and an increase in liabilities D. Increase in equipment (assets) and a decrease in liabilities 14. The right side of a T-account is a(n) A. Debit 15. A credit is used to record: A. An increase in an expense account C.A decrease in a revenue account. 16. An account balance is: A. The total of the credit side of the account B. The total of the debit side of the account 40 st If r B. Increase. C. Credit D. Decrease. B. A decrease in an asset account. D. A decrease in a capital account s C. The difference between the total debits and total credits for an account including the beginning balance. D. Assets liabilities + equity. 17. Of the following accounts, the one that normally has a credit balance is A. Cash C. Wages Payable. 18. On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of September? A. A $0 balance. C. A $4,300 credit balance. 19. Wisconsin Rentals purchased office supplies on credit. The general joumal entry made by Wisconsin Rentals will include a so B. Office Equipment. D. Owner, Withdrawals ol sbeiB.A $4,300 debit balanoe. sd to D.A $5,700 debit balance. A. Debit to Accounts Payable. C. Credit to Cash. 20. Which of the following statements is true?rig A. Revenue accounts are increased by debit entries. B. Journalizing entries occurs after posting entries. a C. Debit entries are entries involving the right-hand side on an account. D. An account shows increases and decreases and an account balance. B. Debit to Accounts Receivable. ba D. Credit to Accounts Payable. wlse i sedn ao 00A Page 2 of 4
