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ch4 Student: ___________________________________________________________________________ 1. An expanded version of the accounting equation could be: A. A + Rev = L + OE - Exp B. A - L = Paid-in Capital - Rev - Exp C. A = L + Paid-in Capital + Beginning Retained Earnings + Rev - Exp D. A = L + Paid-in Capital - Rev + Exp 2. In the seller's records, the sale of merchandise on account would: A. Increase assets and increase expenses. B. Increase assets and decrease liabilities. C. Increase assets and increase paid-in capital. D. Increase assets and decrease revenues. 3. In an advertiser's records, a newspaper ad submitted and published this week with the agreement to pay for it next week would: A. Decrease assets and decrease expenses. B. Increase liabilities and increase expenses. C. Decrease assets and increase revenue. D. Increase assets and decrease liabilities. 4. In the buyer's records, the purchase of merchandise on account would: A. Increase assets and increase expenses. B. Increase assets and increase liabilities. C. Increase liabilities and increase paid-in capital. D. Have no effect on total assets. 5. A newspaper ad submitted and published this week, with the agreement to pay for it next week would, in the newspaper's records: A. Increase assets and increase revenues. B. Increase assets and decrease liabilities. C. Increase assets and increase expenses. D. Have no effect on total assets. 6. A debit entry will: A. Decrease an asset account. B. Increase a liability account. C. Increase paid-in capital. D. Increase an expense account. 7. A credit entry will: A. Increase an asset account. B. Increase a liability account. C. Decrease paid-in capital. D. Increase an expense account. 8. A credit entry to an account will: A. Always decrease the account balance. B. Always increase the account balance. C. Increase the balance of a revenue account. D. Increase the balance of an expense account. 9. A debit entry to an account will: A. Always decrease the account balance. B. Always increase the account balance. C. Increase the balance of a revenue account. D. Increase the balance of an expense account. 10. An engineering consultant provided $500 of services to a client; the client paid $100 when the bill was submitted and will pay the balance within a week. The consultant will record this transaction by: A. B. C. D. 11. To accrue $5,500 of employee salaries for the last week of February, the employer's journal entry is: A. B. C. D. 12. Sage, Inc. has 20 employees who each earn $100 per day and are paid every Friday. The end of the accounting period is on a Wednesday. How much wages should the firm accrue at the end of the period? A. $2,000. B. $1,000. C. $0.... View Full Document

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