unting equation may be expressed as

A$.$ Assets $+$ Liabilities $=$ Owner's Equity

B$.$ Assets $$ Liabilities $=$ Owner's Equity

C$.$ Assets $=$ Revenues $$ Liabilities

D$.$ Assets $=$ Equities $$ Liabilities

$2.$ B

A$.$ cash

B$.$ wages payable

C$.$ inventory

D$.$ investments

$3.$ A

A$.44,000$

B$.84,000$

C$.128,000$

D$.212,000$

$4.$ A

A$.$ decrease an asset, decrease a liability

B$.$ increase an asset, increase owner's equity

C$.$ increase an asset, increase a liability

Instructions: Read each of the following multiple choice questions carefully. Enter the correct answer in the highlighted

and underlined cell corresponding to that question. Use capital letters for your responses $($A$,$ B$,$ C$,$ or D$).$ There is only one

correct answer to each question. The assignment is open book and open note but is non$-$collaborative: This assignment

must be your own work. The assignment is not timed but it is due by the date indicated in the syllabus.

Note: DO NOT change the formatting of this spreadsheet. Do not add columns or rows. Simply place your answer in the

appropriate cell.

$*$Critical Assignment: This is the Critical Assignment for the course and must be passed at an acceptable rate in order to

pass the course.

Objective $1\mathrm{.}1$: Describe and use the accounting equation

Which of the following is not an asset?

The assets and liabilities of the company are $$128,000$ and $$84,000,$ respectively. Owner's equity

should equal

A business paid $$7,000$ to a creditor in payment of an amount owed. The effect of the transaction on

the accounting equation was to

D$.$ increase an asset, decrease another asset

$5.$ A

A$.14,000$ increase

B$.106,000$ decrease

C$.14,000$ decrease

D$.106,000$ increase

Questions $6-10$ relate to CSO $1\mathrm{.}2,1\mathrm{.}3,1\mathrm{.}4$

$6.$ D Which of the following is true about T accounts?

A$.$ The left side of a T account is called the credit side.

B$.$ Transactions are first recorded in T accounts and then posted to the journal.

C$.$ The right side of a T account is called the debit side.

D$.$ The left side of a T account is called the debit side.

$7.$ B The balance of an account is determined by

A$.$ always subtracting the debits from the credits

B$.$

C$.$ always subtracting the credits from the debits

D$.$ adding all of the debits to all of the credits

$8.$ D

Accounts payable $1,500$ Fees earned $3,600$

Accounts receivable $1,800$ Insurance expense $1,300$

Prepaid insurance $2,000$ Land $3,000$

Cash $3,200$ Wages expense $1,400$

Drawing $1,200$ Capital $8,800$

Total assets are

A$.8,000$

If total liabilities decreased by $$46,000$ during a period of time and owner's equity increased by

$$60,000$ during the same period, the amount and direction $($increase or decrease$)$ of the period's

change in total assets is

Objective $1\mathrm{.}2$: Prepare two$-$column journal entries

Objective $1\mathrm{.}3$: Prepare and utilize t$-$accounts for journal entries and decision making

Objective $1\mathrm{.}4$: Prepare a trial balance in good form

adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger

sum

The accounts in the ledger of Monroe Entertainment Co$.$ are listed below. All accounts have normal

balances.

B$.9,800$

C$.9,700$

D$.10,000$

$9.$ B Which of the following entries records the payment of an account payable?

A$.$ debit Accounts Receivable; credit Cash

B$.$ debit Accounts Payable; credit Cash

C$.$ debit Cash; credit Supplies Expense

D$.$ debit Cash; credit Accounts Payable

$10.$ D

Accounts Payable $1,500$ Fees Earned $3,600$

Accounts Receivable $1,800$ Insurance Expense $1,300$

Prepaid Insurance $2,000$ Land $3,000$

Cash $3,200$ Wages Expense $1,400$

Drawing $1,200$ Capital $8,800$

Prepare a trial balance. The total of the debits is

A$.11,200$

B$.9,700$

C$.12,700$

D$.13,900$

Questions $11-15$ relate to CSO $1\mathrm{.}5,1\mathrm{.}6$

$11.$ C When preparing the statement of owner's equity, the beginning capital balance can always be found

A$.$ in the statement of cash flows

B$.$ in the Balance Sheet columns of the work sheet

C$.$ in the general ledger

D$.$ in the Income Statement columns of the work sheet

$12.$ A Accumulated Depreciation appears on the

The accounts in the ledger of Monroe Entertainment Co$.$ are listed below. All accounts have normal

balances.

Objective $1\mathrm{.}5$: Identify the elements of the income statement, statement of owners$$ equity $($retained earnings$),$ and

balance sheet

Objective $1\mathrm{.}6$: Prepare an income statement, statement of owner$$s equity $($retained earnings$),$ and balance sheet in

good form

A$.$ balance sheet in the property, plant, and equipment section

B$.$ income statement as an operating expense

C$.$ balance sheet in the long$-$term liabilities section

D$.$ balance sheet in the current assets section