These are multiple choice questions, no need explanation, choose only the right answers for each question.

1.A ledger

a.Contains only asset and liability accounts.

b.Is a book of original entry.

c.Is a collection of the entire group of accounts maintained by a company.

d.Should show accounts in alphabetical order.

2.As of December 31, 2019, Stoneland Company has assets of $3,500 and owner's equity of $2,000. What are the liabilities for Stoneland Company as of December 31, 2019?

a. $1500

b.$2500

c.$1000

d.$2000

3.Debits

a.Decrease both assets and liabilities.

b.Increase both assets and liabilities.

c.Increase assets and decrease liabilities.

d.Decrease assets and increase liabilities.

4.The financial statement that reports assets, liabilities, andowner's equity is the:

a.Balance sheet.

b.Owner's equity statement.

c.Income statement.

d.Statement of cash flow

5.The cost principle states that:*

a.Activities of an entity are to be kept separate and distinct from its owner.

b.Assets should be initially recorded at cost and adjusted when the market value changes.

c.Only transaction data capable of being expressed in terms of money be included in the accounting records

d.Option 5

e.Assets should be recorded at their cost.

6.The purchase of supplies on account should result in:*

a.A debit to Supplies and a credit to Accounts Payable.

b.A debit to Supplies Expense and a credit to Accounts Payable.

c.A debit to Supplies and a credit to Accounts Receivable.

d.A debit to Supplies Expense and a credit to Cash.

7.Maggie Sharrer Company expects to extract 20 million tons of coal from a mine that cost $12 million. If no salvage value is expected, and 2 million tons are mined and sold in the first year, the entry to record depletion will include a:*

a.Credit to Accumulated Depletion of $2,000,000.

b.Credit to Depletion Expense of $1,200,000.

c.Debit to Depletion Expense of $1,200,000.

d.Debit to Accumulated Depletion of $2,000,000.

8.The expanded accounting equation is:

a.Assets = Liabilities + Owner's Capital - Owner's Drawing + Revenues - Expenses

2. Assets = Liabilities + Owner's Capital + Owner's Drawing + Revenues - Expenses

3. Assets = Liabilities - Owner's Capital - Owner's Drawing - Revenues - Expenses

4. Assets + Liabilities = Owner's Capital + Owner's Drawing+ Revenues - Expenses

9.Which of the following statements about users of account-ing information is incorrect?*

A.Management is an internal user.

B.Taxing authorities are external users.

C.Regulatory authorities are internal users.

D.Present creditors are external users.

10.A trial balance

a.Is a list of accounts with their balances at a given time.

b.Proves that all transactions have been recorded.

c.Proves the mathematical accuracy of journalized transactions.

d.Will not balance if a correct journal entry is posted twice.