In John's Restaurant, total assets are $40,000 and Johns TILIM EXAMINATION a. $40,000 $30,000 c. $20,000 d. SO and John's capital is $10.000. Total liabilities amount to 2. A joumal entry must consist of a. a single debit entry and a single credit entry. b. two credit entries if they are the same amounts. c. any combination of debit and credit entries as long as credits entries. as any combination of debit and credit entries as long as the to amounts of credits. nes as long as the number of debits entries equals the number of long as the total dollar amounts of debits equals the dollar 3. What is Auditing? a. Certifying the financial soundness of an enterprise b. Minimizing the risk perceived with the cost and allocation of Examining the accounting records of an enterprise to ensure the statements. d. Monitoring the financial performance of an enterprise. ness of an enterprise by examining its accounting records. terprise to ensure the faimess and reliability of its financial 4. Who uses accounting information? a. External Users b. Internal Users c. Governmental Agencies a. All of the above 5. John Doe has a bank account and owns a restaurant, a supermarket, and a Carvel ice cream store. How accounting entities are there? b.2 c. 3 d ation: Current Assets, $10,000; Current Liabilities, $15,000; Plant 30.000. What are Long-Term Liabilities? 6. You are given the following information: Current Assets, S10.000 Equipment. $40,000; and Owner Equity, 30,000. What are Long-Term Liabili $5,000 b. $10,000 c. $15,000 d. $20,000 z Which of the following is not a current asset? Sales b. Accounts Receivable c. Notes Receivable d. Cash e. Inventory