Question 1 (2 points)

Meinac Corporation bought Furniture worth $40,000 on cash. What would be the journal entry to record this transaction?

Question 1 options:

	Debit cash account; Credit furniture account
	Debit Furniture Account; Credit Cash Account
	Credit Capital Account, Credit cash account
	Debit machinery account; credit Furniture account

Question 2 (2 points)

Calculate Closing capital from the following information-

Opening capital $500,000; Withdrawals $45,000; Investment by owner $10,000, Net loss $4500

Question 2 options:

	$460,500
	$469,500
	$400,000
	$496,500

Question 3 (2 points)

When a company pays a bill, the account Cash will be

Question 3 options:

	Credited
	debited
	Both of these
	none of these

Question 4 (2 points)

Which of the following journal entry/entries is correct?

Question 4 options:

	Invest $10,000 cash in business: Debit Capital account, Credit Cash account
	Bought furniture on credit $4000: Debit Furniture account, credit Cash account
	Bought machinery on credit $8000: Debit machinery account, credit Accounts Payable account
	Bought machinery on credit $8000: Debit machinery account, credit Accounts Receivable account

Question 5 (2 points)

A ____________ is a record where journal entries are posted in a chronological order.

Question 5 options:

	Journal
	Balance sheet
	Income statement
	Trial balance

Question 6 (2 points)

Calculate Net Profit/ net loss from the following information-

Teaching Revenue $50,000; Rent expenses $5000, Equipment $40,000, Supplies expense $6000, Tutoring revenue $55,000; Phone expense $10,000

Question 6 options:

	Net Loss $48,000
	Net profit $84,000
	Net Profit $44,000
	Net Profit $48,000

Question 7 (2 points)

Accrued interest is _______

Question 7 options:

	Current asset
	Fixed asset
	Liability
	intangible asset

Question 8 (2 points)

Which term is associated with "left" or "left side"?

Question 8 options:

	account
	ledger
	debit
	credit

Question 9 (2 points)

What are Prepaid expenses?

Question 9 options:

	These are future expenses paid in advance
	These are assets
	These are past expenses, paid today
	Both a and b

Question 10 (2 points)

Increase in assets are debited to assets accounts and decrease in assets are credited to capital account

Question 10 options:

	True
	False

Question 11 (2 points)

The sum of debits recorded must be ___________ the sum of the credits for each economic event captured in the accounting records.

Question 11 options:

	more than
	equal
	less than
	90%

Question 12 (2 points)

Owner of ABC enterprises agrees to hire Sandy as Salesman from next month @ $25 per hour for a 40 hour workweek. What would be the entry to record it?

Question 12 options:

	Sandy account debit, credit Mr.A account
	Salary account Debit, credit bank account
	Sandy account Debit, Credit cash account
	No entry

Question 13 (2 points)

A list of accounts and thier balances at a point of time is shown in

Question 13 options:

	Statement of changes in equity
	income statement
	balance sheet
	trial balance

Question 14 (2 points)

Calculate the total of asset side in Balance sheet, from the given information-

Equipment $40,000; Owner's Closing capital $400,000; Unearned revenue $55,000; Prepaid expenses $5000; Equipment $350,000; Debtors $4000; Accounts receivable 56,000

Question 14 options:

	$455,000
	$399,000
	$454,000
	None of these

Question 15 (2 points)

Cash account is a debit account; it can never be credited.

Question 15 options:

	True
	False

Question 16 (2 points)

Unearned Revenues is what type of account?

Question 16 options:

	Equity
	Asset
	Liability
	Capital

Question 17 (2 points)

Supplies purchased on credit. Which component of accounting equation increases or decreases?

Question 17 options:

	Supplies decreases, Accounts payable increases
	Supplies increases, Accounts payable decreases
	Supplies increases, Accounts payable increases
	Supplies decreases, Accounts payable decreases

Question 18 (2 points)

Trial balance is always prepared before posting Journal entries into a General Journal.

Question 18 options:

	True
	False

Question 19 (2 points)

Total debits in Machinery account is $100,000. Total credit balance in machinery account is $85,000. What would be the final balance in T account?

Question 19 options:

	$15,000 Debit
	$15,000 Credit
	$185,000 Debit
	$185,000 Credit

Question 20 (2 points)

Mr.A invested $25,000 cash into the business. The journal entry would be

Question 20 options:

	Debit Mr.A's Capital account, Credit cash account
	Debit Cash account, Credit Mr.A's capital account
	Debit Bank account, Credit Mr.A's capital account
	Debit Furniture Account, Credit Mr.A's capital account

Question 21 (2 points)

Rent expense goes to which of the following statement/statenments?

Question 21 options:

	Purchase Ledger
	Statement of changes in equity
	Balance sheet
	Income statement

Question 22 (2 points)

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as

Question 22 options:

	Assets
	Liabilities
	Equity
	None of these

Question 23 (2 points)

A T-Account is a tool that represents account in the ledger.

Question 23 options:

	True
	False

Question 24 (2 points)

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the

Question 24 options:

	Trial balance
	Income statement
	Balance Sheet
	Statement of changes in Equity

Question 25 (2 points)

What would be the normal balance of Amrit Sandhu, withdrawal's account?

Question 25 options:

	Credit
	Debit
	Any of these
	None of these