Choose the best answer

1. The owner invests money to start the business a. Credit to Accounts Payable debit to Cash b. Credit to Accounts receivable debit to Cash c. Credit to Cash debit to Accounts payable d. Credit to Capital debited to Cash and. None of the above

2. It is known as the Accounting Information System a. Post a special order b. identify, analyze, record and communicate c. identify, record, analyze, and communicate d. Work is posted to a worksheet and. All of the above

3. Which of the following is the basic accounting equation? a. Liabilities + Assets = Capital b. Liabilities - Assets = Capital c. Liabilities + Capital = Capital d. Assets = Liabilities - Capital and. None of the above

4. The owner receives payment for a service from three months ago a. Credit to Accounts Payable debit to Cash b. Credit to Accounts receivable debit to Cash c. Credit to Cash debit to Accounts payable d. Credit to Capital debited to Cash and. None of the above

5. Which of the following is the basic accounting equation? a. Liabilities - Capital = Assets b. Assets + Capital = Liabilities c. Assets - Liabilities = Capital d. Assets = Liabilities - Capital and. All of the above

6. The following accounts always increase due to debit a. Expenses, Assets, Retirement b. Earnings, Expenses, Liabilities c. Liabilities, Expenses, Capital d. Assets, Retirement, Earnings and. None of the above

7. The following accounts always increase by credit a. Expenses, Assets, Retirement b. Earnings, Expenses, Liabilities c. Liabilities, Earnings, Capital d. Assets, Retirement, Earnings and. None of the above

8. The owner paid a debt a. Credit to Accounts Payable debit to Cash b. Credit to Accounts receivable debit to Cash c. Credit to Cash debit to Accounts payable d. Credit to Capital payable debit to Expenses and. None of the above

9. Type of business that the owners have unlimited liability a. Coffee shop b. Partnership c. Restaurant d. Corporation and. None of the above

10. The owner was paid an account Receivable a. Credit to Accounts Payable debit to Cash b. Credit to Accounts receivable debit to Cash c. Credit to Cash debit to Accounts payable d. Credit to Capital payable debit to Expenses and. None of the above