CHOOSE THE CORRECT ANSWER.

35.The term "posting" as used in accounting means

recording an accountable event in debit-credit format.

transferring the debits and credits of journal entries from the journal to the affected accounts in the ledger.

checking the equality of the monetary totals of debits and credits of accounts in the ledger.

uploading photographs to the internet.

36.At the beginning of the period, Addy had a cash balance of 20,000 and a notes payable of 15,000. During the period, Addy collected 11,000 accounts receivable, paid 8,000 notes payable, and issued additional notes payable of 5,000 in exchange for cash. How much are the ending balances of cash and notes payable, respectively?

Cash 17,000 Notes Payable 20,000

Cash 20,000 Notes Payable 12,000

Cash 28,000 Notes Payable 12,000

Cash 36,000 Notes Payable 20,000

37.What is the normal balance of the purchase returns account?

debit

credit

zero

none of these

38.Which of the following is equal to total goods available for sale?

Net purchases - Inventory, beg.

Cost of sales - Inventory, end.

Inventory, end. + Cost of sales

Net purchases + Inventory, end.

39.A business has total assets, liabilities, and equity of 10,000, 7,000 and 3,000, respectively, at the beginning of the period. During the period, total liabilities decreased to 4,000 while profit was 5,000. How much is the ending total assets?

12,000

11,000

9,000

7,000

38. Imagine you are a business manager. Your company has an opportunity to venture out into a new market with a new product. However, your current resources are limited. In order to take the opportunity, you need to discontinue the production of one of your existing products. Your company's accountant provided you with the following information to help you decide which product to discontinue.

Product A Product B Product C

Net sales (income) 5,000,000 3,500,000 2,100,000

Attributable costs (expenses) (4,800,000) (2,275,000) (630,000)

Which product will you most likely consider to stop producing?

Product A

Product B

Product C

All them

41.Which of the following is not a special journal?

General Journal

Sales Journal

Purchase Journal

Cash Receipts Journal

42.A business sells goods on cash basis. This transaction is most likely recorded in which of the following special journals?

Sales journal

Purchases journal

Cash receipts journal

Diary journal

43.At the beginning of the period, Entity A's notes payable had a balance of 1,200. During the period, Entity A obtained an additional loan of 800 and made total

1,800

1,500

1,200

900

44.This branch of accounting involves teaching accounting, taxation, and other business-related subjects.

Accounting education

Government Accounting

Accounting research

Tax accounting

45.This account is used to record payments received from customers prior to the delivery of goods or rendering of services.

Accrued income

Unearned income

Prepaid asset

Accounts receivable

46.A chart of accounts is

a listing of all accounts and their balances.

a subsidiary ledger.

a special journal.

a listing of all account titles.

47.How is profit or loss calculated?

It is the difference between net assets at the beginning and end of the accounting period irrespective of transactions with owners.

It is the difference between net liabilities at the beginning and end of the accounting period.

It is the difference between assets and liabilities.

It is the difference between income and expenses.

48.The beginning equity is 5,000. If total income for the period is 8,000 while total expenses are 6,000, how much is the ending balance of equity?

7,000

5,000

3,000

1,000

49.The ending equity is 9,000. If total income for the period is 5,000 while total expenses are 8,000, how much is the beginning balance of equity?

12,000

9,000

6,000

50.At the start of the period, a business has total assets of 500,000 and total liabilities of 300,000. During the period, the business earned total income of 1,000,000 and total expenses of 640,000. No additional investments or withdrawals were made by the owner. Total assets at the end of the period were 830,000. How much is the total liabilities at the end of the period?

280,000

270,000

260,000

240,000