The purpose of the ledger is to

Question 1 options:

	Maintain a separate account for each asset, liability, etc.
	Keep a record of documentation to support each transaction
	Make sure that all assets, liabilities, etc., have normal balances at all times
	Have a chronological record of the transactions

Question 2 (4 points)

Net loss results in a(n)

Question 2 options:

	Increase in owner's equity
	Decrease in owner's equity
	Decrease in expenses
	Decrease in liabilities
	Increase in revenues

Question 3 (4 points)

In what order do we do things?

Question 3 options:

	Post, close, prepare, adjust, analyze, record
	Prepare, record, post, adjust, analyze, close
	Analyze, record, post, adjust, close, prepare
	Record, post, close, prepare, adjust, analyze

Question 4 (4 points)

Cost of Goods Available = Beginning Inventory + Net Purchases.

Question 4 options:

	FALSE
	TRUE

Question 5 (3 points)

The best definition of assets is the

Question 5 options:

	Cash owned by the company
	Owner's investment in the business
	Resources belonging to a company having future benefit to the company
	Collection of resources belonging to the company and the claims on these resources

Question 6 (3 points)

The beginning balance of the Supplies account was $90. During the month $80 of supplies were purchased. On the last day of the month there were $120 of supplies on hand. In the adjusting entry, Supplies should be:

Question 6 options:

	debited for $120
	credited for $120
	none of these
	debited for $50
	credited for $50

Question 7 (3 points)

A check that we wrote and sent and recorded is not showing as having cleared on the bank statement. On the bank reconciliation we would show this as a(n)

Question 7 options:

	none of these
	decrease on the bank side
	increase on the bank side
	decrease on the book side
	increase on the book side