S05 MT2

S05 MT2 - Name: _ Perm # TEST VERSION: A Class: _ Date: _...

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Name: ________________________ Perm # Class: ___________________ Date: __________ TEST VERSION: A ANSWER ALL MULTIPLE CHOICE ON YOUR SCANTRON AND WRITE YOUR TEST COLOR ON THE SCANTRON. THERE IS ONLY ONE PROBLEM-- ANSWER IT IN THE SPACE PROVIDED ON THIS EXAM. PUT AWAY ANY BLUE-BOOKS! 1 3a S05 mt2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. PLEASE ANSWER ALL MULTIPLE CHOICE ON A GREEN SCANTRON. ____ 1. The payment of employee salaries has what effect on the accounting equation? a. Assets decrease and owners' equity decrease b. Liabilities decrease and owners' equity decreases c. Assets decrease and liabilities increase d. Assets increase and liabilities decrease ____ 2. Which of the following statements regarding the activities of St. Jean Corp. is true ? a. Revenues decrease St. Jean's owners' equity. b. Expenses increase St. Jean's owners' equity. c. Expenses decrease St. Jean's owners' equity. d. Dividends distributed by St. Jean increase its owners' equity. ____ 3. The Kelly Company purchased a building for $75,000 in cash. What is the effect on current assets? a. Increase in current assets b. Decrease in current assets c. No effect on current assets d. Unable to determine ____ 4. A credit means a. the event is favorable. b. the event is unfavorable. c. always increase the account. d. always decrease the account. e. the right hand side of an account. ____ 5. A list of all accounts, including their assigned account numbers, used by a company is called a a. general journal. b. trial balance. c. chart of accounts. d. general ledger. ____ 6. An abbreviated version of an account which is useful for analyzing the effects of business transactions is the a. T account. b. trial balance. c. chart of accounts. d. double-entry system. ____ 7. Debit entries are used to a. increase asset accounts. b. decrease expense accounts. c. increase liability accounts. d. increase revenue accounts.
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2 ____ 8. Credit entries are used to a. increase asset accounts. b. increase liability accounts. c. decrease revenue accounts. d. decrease liability accounts. ____ 9. All of the following accounts have normal debit balances except a. Dividends. b. Sales. c. Office supplies expense. d. Accounts receivable. ____ 10. All of the following accounts have normal credit balances except a. Investments. b. Service revenue. c. Accounts payable. d. Common stock (capital stock). Exhibit 3-5 Transactions: May 1 Bills are sent to clients for services provided in April in the amount of $800. 9 City Office Inc. delivers furniture ($1,060) and office supplies ($160) to Narada leaving an invoice for $1,220. 15
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This note was uploaded on 06/09/2009 for the course ECON 3A taught by Professor Loster during the Winter '07 term at UCSB.

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S05 MT2 - Name: _ Perm # TEST VERSION: A Class: _ Date: _...

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