Subject: Introduction Accounting Just answer the questions below and that's it!

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1. The normal balance of common shares is a - ------------------------------------------------------------------------------------ 2. The normal balance of unearned revenue is a - ------------------------------------------------------------------------------------

3. The normal balance of prepaid expenses is a - ------------------------------------------------------------------------------------

4. A trial balance is a listing of the:

a) transactions in a journal

b) chart of accounts.

c) general ledger accounts and balances.

d) totals from the journal pages. ------------------------------------------------------------------------------------ 5. What type of event does the following journal entry describe?

Dr Accounts payable 2000 Cr Cash 2000

a) Provided services on account.

b) Paid cash owed to suppliers.

c) Incurred expenses on account.

d) Collected cash from customers.

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6. The normal balance of interest revenue is a -

------------------------------------------------------------------------------------ 7. The normal balance of utilities expense is a -

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8. Which of the following statements is true?

a) A journal entry may have one account debited and two accounts credited.

b) Accumulated depreciation is an asset account that has a debit balance.

c) Liability accounts have debit balances.

d) The amount of a company's total assets will equal the amount of its total debits.

------------------------------------------------------------------------------------ 9. A company that receives money in advance of performing a service:

a) debits Cash and credits a Prepaid account.

b) debits Unearned Revenue and credits Accounts Payable.

c) debits Cash and credits Unearned Revenue.

d) debits Cash and credits Accounts Receivable.

------------------------------------------------------------------------------------ 10. The normal balance of patents is a -

------------------------------------------------------------------------------------ 11. The normal balance of long term investments is a -

------------------------------------------------------------------------------------ 12. Smart Co. purchased land by issuing a note payable. The journal entry to record this transaction would require a:

a) debit to land and a credit to notes payable.

b) debit to notes payable and a credit to land.

c) debit to land and a debit to notes payable.

d) credit to land and a credit to notes payable.

------------------------------------------------------------------------------------ 13. The normal balance of dividends declared is a -

------------------------------------------------------------------------------------ 14. Purchasing supplies and office equipment for cash would include a:

a) debit to supplies; credit to office equipment and cash.

b) debit to supplies and office equipment; credit to cash.

c) debit to office equipment; credit to supplies and cash.

d) debit to cash; credit to office equipment and supplies.

------------------------------------------------------------------------------------ 15. A $50,000 machine is purchased by paying $35,000 cash and signing a bank loan payable for the balance. The journal entry should include a

a) credit to Bank Loan Payable.

b) debit to Cash.

c) credit to Accounts Receivable.

d) credit to Machinery. ------------------------------------------------------------------------------------ 16. The normal balance of retained earnings is a -

------------------------------------------------------------------------------------ 17. The normal balance of accumulated depreciation is a -

------------------------------------------------------------------------------------ 18. The following account balances are available for Pedro Co.

Cash $ 5,000 Common shares $ 12,000 Accounts payable 6,000 Land 20,000 Supplies 1,000 Accumulated depreciation 4,000 Equipment 15,000 Retained earnings 19,000

If the account balances above were placed in a trial balance, the total of the debits column and the credits column would equal to:

a) $27,000

b) $37,000

c) $41,000

d) $60,000 ------------------------------------------------------------------------------------ 19. How would the following entry affect the accounting equation?

Dr Prepaid insurance 700 Cr Cash 700

a) Assets would increase and equity would decrease.

b) Liabilities would increase and assets would decrease.

c) Liabilities would decrease and assets would decrease.

d) There would be no effect on total assets, liabilities, or equity.

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20. The copying of amounts from the journal to the appropriate ledger accounts is referred to as:

a) verifying.

b) journalizing.

c) posting.

d) balancing.