12. When using a subsidiary ledger, the Accounts Receivable account in the general ledger is called the

1. master account.
2. subsidiary account.
3. receivable account.
4. controlling account

13. Which of the following is a characteristic of a sole proprietorship?

1. Business owned by more than one person
2. Easy to form
3. Each stockholder acts as an owner of the company
4. Can continue indefinitely.

20. Which account is not used with a perpetual inventory system?

1. Sales Returns and Allowances
2. Purchase Returns and Allowances
3. Inventory
4. Cost of Goods Sold

21. If the beginning capital was $14,000 and in a fiscal period there was revenue of $8,000, withdrawals of $3,000, and expenses of $1,500 then the ending capital would be

1. $26,500.
2. $23,500.
3. $17,500.