Principles of Accounting I - quiz week 1.docx - Principles...

Principles of Accounting I-E-AH Gisselle M. Moshanko
Chapters 1 & 2 Quiz
Question 1
2 Points
Every transaction affects at least two accounts.
The purchase of land in exchange for cash is recorded with which of the following
entries?
debit to Land and credit to Cash
Question 2
2 Points
The accounting equation can be expressed in all of the following ways EXCEPT:
Liabilities = Assets + Owner's Equity.
Question 3
2 Points
A merchandising business
sells a finished product that was purchased in that same form
Question 4
2 Points
A prepaid expense, such as the purchase of insurance for an upcoming period, is initially
recorded in the accounting system as:
an asset
Question 5
2 Points
A credit may represent a(n):
increase in a liability account.