d. gov 8. On May 20, White Repair Service extended an offer of $108,000 for land that had been priced for sale at $140,000. On May 30, White Repair Service accepted the seller's counteroffer of $115,000. On June 20, the land was assessed at a value of $95,000 for property tax purposes. On July 4, White Repair Service was offered $150,000 for the land by a national retail chain. At what value should the land be recorded in White Repair Service's records? a. $108,000 b. $95,000 c. $140,000 d. $115,000 9. Within the United States, the dominant body in the primary development of accounting principles is the a. American Institute of Certified Public Accountants (AICPA) b. American Accounting Association (AAA) c. Financial Accounting Standards Board (FASB) d. Institute of Management Accountants (IMA) 10. The business entity concept means that a. the owner is part of the business entity b. an entity is organized according to state or federal statutes c. an entity is organized according to the rules set by the FASB d. the entity is an individual economic unit for which data are recorded, analyzed, and reported 11. The debit side of an account a. depends on whether the account is an asset, liability, or stockholders' equity b. can be either side of the account depending on how the accountant set up the system c. is the right side of the account d. is the left side of the account 12. Which side of the account increases the cash account? a. credit b. neither a debit or a credit c. debit d. either a debit or a credit 13. Which of the following is true about T accounts? a. The left side of a T account is called the debit side. b. The left side of a T account is called the credit side. c. The right side of a T account is called the debit side. d. Transactions are first recorded in T accounts and then posted to the journal. 14. In the chari ol accounts, tie balance SICel accounts are normally listed in which order? a. liabilities, assets, stockholders' equity b. assets, liabilities, stockholders' equity c. stockholders' equity, assets, liabilities d. assets, stockholders' equity, liabilities 15. Of the following, which is true about assets? a. Assets include both physical and intangible items. b. Assets include only physical items c. Assets are the personal property of the stockholders of the company d. Assets are the result of selling products or services to customers. Which of the following types of accounts have a normal credit balance? a. assets and liabilities b. liabilities and expenses c. revenues and common stock d. common stock and dividends 17. Which of the folowing entries records the collection of cash from cash customers? a. Fees Earned, debit; Cash, credit b. Fees Eamed, debit; Accounts Receivable, credit c. Cash, debit; Fees Earned, credit d. Accounts Receivable, debit; Fees Earned, credit 18. Gently Laser Clinic purchased laser equipment for $8,500 and paid S2,250 down, with the remainder to be paid later. The correct entry would be Accousts Payable 19. Joshua Scott invests $40,000 into his new business. would this transaction be entered in the journal in good form? How a. Cash 40,000 Common Stock 40,000 Invested cash in business. Accounts Receivable 40,000 Common Stock 40,000 Invested cash in business e Common Stock 40,000 40,000 Cash Invested cash in business. Loans Payable 40,000 Cash 40,000 and Invested cash in business 20. The classification and normal balance of the dividends account is a. an expense with a credit balance b. an expense with a debit balance c. a liability with a credit balance d. stockholders' equity with a debit balance 21. As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called a. equipment allocation b. depreciation c. accumulation d. matching 22. Accumulated Depreciation and Depreciation Expense are classified, respectively, as a. expense, contra asset b. asset, contra liability c. revenue, asset d. contra assetsexpense 23. The type of account and normal balance of Prepaid Insurance is a. asset, credit b. asset, debit c. contra asset, credit d. contra asset, debit 24. Which account would normally not require an adjusting entry? a. Wages Expense b. Accounts Receivable c. Accumulated Depreciation d. Cash 25. The balance in the prepaid rent account before adjustment at the end of the year is $32,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is a. debit Rent Expense, $8,000; credit Prepaid Rent, $8,000 b. debit Prepaid Rent, $24,000, credit Rent Expense, $8,000 c. debit Rent Expense, $24,000, credit Prepaid Rent, $8,000 d. debit Prepaid Rent, $8,000, credit Rent Expense, $8,000 26. Adjusting entries always include a. only income statement accounts c. the cash account d. at least one income statement account and one balance sheet account and Ons 27. Prior to the adjusting process, accrued expenses have a. not yet been incurred, paid, or recorded b. been incurred, not paid, but have been recorded c. been incurred, not paid, and not recorded d. been paid but have not yet been incurred