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1			The accounting cycle consists of which of the following number of specific steps?
			A)	Three
			B)	Four
			C)	Five
			D)	Eight
			E)	Ten
2			The collection of all of the accounts is kept together in the:
			A)	journal, only.
			B)	ledger, only.
			C)	trial balance, only.
			D)	both the journal and the ledger.
3			Which of the following is not true about the normal balance of the accounts or account categories shown below?
			A)	Assets normally have a debit balance.
			B)	Liabilities normally have a credit balance.
			C)	Owners equity accounts normally have a credit balance.
			D)	Accounts receivable normally has a credit balance.
4			Consider the following: If you have $5,000 in Savings and a Car that is worth $10,000 and you still owe $3,000 on the car, what is your equity.
			A)	$5,000
			B)	$15,000
			C)	$12,000
			D)	$18,000
5			Recording a $100,000 investment by owners on January 1 for capital stock of the company will result in which of the following?
			A)	Increase an asset and decrease owners equity
			B)	Increase an asset and increase owner's equity
			C)	Increase an asset and increase liability
			D)	Increase an asset and decrease a liability
6			Revenue can be described as which of the following?
			A)	Net income for the accounting period
			B)	Sales minus expenses
			C)	Gross increase in owners' equity resulting from operation of the business
			D)	All of the above
7			An advertising program was paid in advance on March 1 for delivery through newspaper advertisements beginning on April 1 and ending on April 15. The advertising program cost $5,000. When should the expense of the advertising program be recognized?
			A)	April 1
			B)	March 1
			C)	May 1
			D)	April 15
8			If revenue is $50,000 and cost of goods sold was $20,000 and Salaries for the company was $15,000, and taxes are $5,000 how much is net income
			A)	$30,000
			B)	$10,000
			C)	$15,000
			D)	$5,000
9			The debit balance of the trial balance is $456,000 and the credit balance of the trial balance is $465,000. This indicates which of the following?
			A)	An account was not posted
			B)	An account was posted twice
			C)	An account was posted for an incorrect amount
			D)	Any of the above might have occurred
10			If, in fulfilling your duties as a bookkeeper or accountant, you are requested by a superior to record a nonexistent transaction that will reflect favorably on the financial position of the company, you should do which of the following?
			A)	Not record the transaction, and report the request to a higher supervisor
			B)	Ask for a raise in exchange for the risk involved in the fraud being disclosed
			C)	Record the transaction, adding a note about the circumstances.
			D)	Record the transaction as part of the normal journaliz

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