Question 1

3pts

Which of the following is NOT an area in which accountants usually practice?

Group of answer choices

Public Accounting

Industrial Accounting

Governmental Accounting

Managerial (Private) Accounting

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Question 2

3pts

After the worksheet has been completed, the next step in the accounting cycle is to

Group of answer choices

journalize and post the closing entries.

journalize and post the adjusting entries.

prepare the postclosing trial balance.

prepare the financial statements.

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Question 3

3pts

After the transactions have been posted, the next step in the accounting cycle is to

Group of answer choices

prepare the financial statements.

prepare the postclosing trial balance.

prepare the worksheet.

journalize and post the adjusting entries.

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Question 4

3pts

The fundamental accounting equation can be rewritten as:

Group of answer choices

Assets + Liabilities = Owner's Equity

Liabilities - Owner's Equity = Assets

Assets + Owner's Equity = Liabilities

Assets - Liabilities = Owner's Equity

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Question 5

3pts

When the owner takes a draw for personal use, this will

Group of answer choices

increase owners' equity

decrease owners' equity

do not affect owners' equity

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Question 6

3pts

On December 1, 2013, Geneva Jordan opened her new business with the following assets and liabilities.

Accounts Payable1,100Prepaid Rent6,000Cash3,950Loans Payable 15,500Equipment26,200Supplies1,250

What must total owner's equity equal in order for A = L + OE to be true?

Group of answer choices

37,400

21,900

20,800

36,300

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Question 7

3pts

If the owner takes cash out of the business for personal use, the withdrawal should be recorded in a(n) _________.

Group of answer choices

drawing account

expense account

liability account

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Question 8

3pts

When the owner invests cash in a business,

Group of answer choices

assets and revenue increase.

assets increase and owner's equity decreases.

liabilities decrease and owner's equity increases.

assets and owner's equity increase.

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Question 9

3pts

Al Dunn Bakery bought a new oven for $1,380. Al paid $300 as a cash down payment and will pay the balance in 30 days. Total assets increased by

Group of answer choices

$1,080

$1,380

$300

not increased

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Question 10

3pts

A sales return or a sales allowance is usually recorded in the _______ journal.

Group of answer choices

sales

purchases

general

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Question 11

3pts

The Sales Returns & Allowances account is a

Group of answer choices

contra-revenue account

asset account

liability account

equity account

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Question 12

3pts

In a firm that uses special journals, an allowance given for damaged merchandise is recorded in the

Group of answer choices

cash payments journal.

cash receipts journal.

general journal.

purchases journal.

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Question 13

4pts

The entry to record services performed for cash clients is

Group of answer choices

a debit to Accounts Receivable and credit to Service Fees

a debit to Cash and a credit to Accounts Receivable

a debit to Cash and credit to Service Fees

a debit to Service Fees and a credit to Cash

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Question 14

4pts

The owner's initial investment of cash into the company is recorded as a ________ to the owner's capital account.

Group of answer choices

debit

credit

either debit or credit

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Question 15

4pts

When credit clients pay their balance due, we record this as

Group of answer choices

debit to Cash and credit to Accounts Receivable

a debit to Cash and a credit to Accounts Payable

a debit to Accounts Receivable and credit to Cash

a debit to Accounts Payable and credit to Cash

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Question 16

4pts

Equipment that cost $4,000 is purchased by issuing a check for $500 and the remainder on account due in 30 days. A credit to Accounts Payable would be made for how much? (do not enter dollar signs)

Group of answer choices

$4,000

$500

$0

$3,500

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Question 17

4pts

The total of the figures on the left side of a Cash account is $25,800. The total of the figures on the right side is $14,100. The balance of this account

Group of answer choices

is $11,700 and would be recorded on the right side of the account.

is $39,900 and would be recorded on the left side of the account.

is $39,900 and would be recorded on the right side of the account.

is $11,700 and would be recorded on the left side of the account.

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Question 18

4pts

The Service Fees account has 2 credit entries of $1,000 and $1,500. What is the balance of this account?

Group of answer choices

debit balance of $2,500

debit balance of $500

credit balance of $2,500

credit balance of $500

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Question 19

4pts

The balance of a t-account

Group of answer choices

is always recorded on the normal balance side

on the side with the greater total

on the credit side

on the debit side

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Question 20

4pts

Service Fees as credit entriesof $12,000 and $4,000. The balance of the service fees account is a

Group of answer choices

credit of $16,000

credit of $8,000

debit of $16,000

credit of $4,000

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Question 21

4pts

Debits are recorded on the _______ side of the T-account:

Group of answer choices

left

right

left or the right

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Question 22

4pts

Credits are used to record

Group of answer choices

decreases in assets and owner's equity and increases in liabilities.

decreases in assets, liabilities, and owner's equity.

decreases in liabilities and increases in assets and owner's equity.

increases in liabilities and owner's equity.

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Question 23

4pts

Accounts with normal debit balances are (select all that apply):

Group of answer choices

Cash

Supplies

Prepaid Insurance

Accounts Payable

Capital

Drawing

Utilities Expense

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Question 24

4pts

The normal balance side of a liability account is the ____ side.

Group of answer choices

debit

credit

either debit or credit

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Question 25

4pts

The T-accounts have the following balances:

What must the balance of the Capital account be for the fundamental accounting equation to balance?

Group of answer choices

debit balance of $17,000

credit balance of $18,000

credit balance of $17,000

credit balance of $16,000

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Question 26

4pts

When revenues are earned, the owner's equity is effectively

Group of answer choices

increased

decreased

not affected

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Question 27

4pts

Which of the following is correct?

Group of answer choices

A

B

Credit 4,500

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Question 28

4pts

What must Liabilities be to ensure the fundamental accounting equation is balanced?

Group of answer choices

debit of 31,000

credit of 31,000

credit of 14,000

debit of 14,000