1
Which of the following entries records the withdrawal of cashfor personal use by D. Bill, the owner of a business?
a.Debit Cash and credit Salary Expense
b.Debit Cash and credit D. Bill, Drawing
c.Debit D. Bill, Drawing and credit Cash
d.Debit Salary Expense and credit Cash
e.None of these choices are correct.
2
A purchase of supplies on account should be recorded as
a.a debit to Supplies and a credit to Cash.
b.a debit to Supplies and a credit to Accounts Payable.
c.a debit to Accounts Payable and a credit to Supplies.
d.a debit to Supplies Expense and a credit to AccountsReceivable.
e.None of these choices are correct.
3
The order the financial statements are prepared is asfollows:
a.statement of owner's equity, income statement, balancesheet
b.balance sheet, income statement, statement of owner'sequity
c.income statement, statement of owner's equity, balancesheet
d.income statement, balance sheet, statement of owner'sequity
4
R. Davis Company has the following accounts and balances at theend of the year:
Cash, $1,200
Accounts Receivable, $280
Office Equipment, $3,000
Accounts Payable, $1,400
Income from Services, $3,500
Rent Expense, $670
Salaries Expense, $1,000
R. Davis, Capital at the beginning of the year was $2,050. RobDavis also withdrew $800 from the company during the year. What isthe amount of total assets reported on the balance sheet?
a.$3,080
b.$9,800
c.$4,480
d.$1,480
5
Jackson Company received cash on account from customers, $2,300.The accountant would record a
a.credit to income from services, $2,300.
b.debit to income from services, $2,300.
c.credit to accounts receivable, $2,300.
d.credit to cash, $2,300.
e.debit to accounts receivable, $2,300
6
Rent Expense is reported on which financial statement?
a.statement of owner's equity
b.balance sheet
c.income statement
d.None of these listed answers are correct.
7
A credit may result in
a.an increase in a revenue account.
b.an increase in a liability account.
c.an increase in the Capital account.
d.a decrease in an asset account.
e.All of these choices are correct.
8
Errors can occur for which of the following reason(s)?
a.Recording only half an entry
b.Recording two debits and no credits
c.Recording incorrect amounts
d.Arithmetic
e.All of these listed answers are correct.
