Question

1

The time period on the ______________ represents only one date.

a.income statement

b.statement of owner's equity

c.balance sheet

d.None of these listed answers are correct.

2

Income from Services would be shown on the ______________.

a.debit side of the trial balance

b.not on the trial balance

c.on both the debit and credit side of the trial balance

d.credit side of the trial balance

3

If a $47 cash purchase of supplies is recorded as a $57 debit to Supplies Expense and a $57 credit to Cash, the result will be that

a.Supplies Expense will be overstated and Supplies will be understated.

b.the Cash account will be overstated.

c.the Supplies Expense account will be understated.

d.the trial balance will be out of balance.

e.None of these choices will be true.

4

The Accounts Payable T account shows the following debit and credit amounts:

$1,200, debit
$3,500, debit
$8,240, credit
$100, credit

What is the balance of the account?

a.$4,700, debit

b.$3,640, credit

c.$8,340, debit

d.$8,340, credit

e.$3,640, debit

5

The last step in analyzing a business transaction is

a.check to see if the equation is in balance.

b.write the transaction as a debit and credit.

c.decide which accounts are involved.

d.classify the accounts involved.

6

A debit may result in

a.an increase in an expense account.

b.a decrease in a liability account.

c.an increase in an asset account.

d.a decrease in a revenue account.

e.All of these choices are correct.

7

An example of an asset account is:

a.Sales.

b.Accounts Receivable.

c.Rental Income.

d.Purchases.

e.Wages Payable.

8

Accounts Payable would be shown on the ___________________.

a.credit side of the trial balance

b.debit and credit side of the trial balance

c.debit side of the trial balance

d.not on the trial balance

Answer 1

1) Balance sheet represents only one date.

OPTION C

2) Income from Services would be shown on the credit side of the trial balance.

OPTION D

3) Supplies Expense will be overstated and Supplies will be understated.

OPTION A

4) $8,240 + $100 - $1,200 - $3,500 = $3,640 Credit

OPTION B

6) All of the above

OPTION E

7) Accounts Receivable is an example of an asset account.

OPTION B

8) Accounts Payable would be shown on credit side of the trial balance.

OPTION A