Choose the correct answer for the following items.

6) Which of the following statements is true of a trial balance?

A) A trial balance is the first step in the accounting cycle.

B) A trial balance is also known as a balance sheet.

C) A trial balance is a list of all accounts with their balances.

D) A trial balance is also known as the chart of accounts.

7) Sunlight Company has assets and equity that amount to $200,000 and $90,000, respectively. Liabilities total ________.

A) $90,000

B) $110,000

C) $200,000

D) $290,000

8) GCC Co. reported assets of $1,000 and equity of $450. What is its debt ratio?

A) 60%

B) 45%

C) 100%

D) 55%

9) Future, Inc. paid $12,000 on accounts payable. How does this transaction affect the accounting equation of Future, Inc.?

A) assets decrease by $12,000 and equity increases by $12,000

B) assets decrease by $12,000 and liabilities decrease by $12,000

C) assets increase by $12,000 and equity decreases by $12,000

D) assets increase by $12,000 and liabilities increase by $12,000

10) The Accounts Payable account of Nadeen, Inc. has the following postings:

Accounts Payable

18,000 | 29,000

5,000 | 12,000

Calculate the ending balance of the account.

A) $18,000 credit

B) $5,000 debit

C) $12,000 credit

D) $18,000 debit