Final Exam 1 - Multiple Choice Questions 1. The accounting...

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Multiple Choice Questions 1. The accounting equation can be stated as: A) A + L - OE = 0. B) A - L + OE = 0. C) -A + L - OE = 0. D) A - L - OE = 0. 2. A sale on account would be recorded by: A) Debiting revenue. B) Crediting assets. C) Crediting liabilities. D) Debiting assets. _____ 3. Which of the following accounts has a debit balance? A) Accounts payable. B) Accrued taxes. C) Accumulated depreciation. D) Bad debt expense. _____ 4. Permanent accounts would not include: A) Interest expense. B) Wages payable. C) Prepaid rent. D) Unearned revenues. _____ 5. Permanent accounts would not include: A) Cost of goods sold. B) Inventory. C) Current liabilities. D) Accumulated depreciation. _____ 6. Temporary accounts would not include: A) Salaries payable.
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B) Depreciation expense. C) Supplies used. D) Cost of goods sold. _____ 7. An individual invested $15,000 in ABC Corporation and received capital stock in exchange. ABC's journal entry to record this transaction would include a: A) Debit to investments. B) Credit to retained earnings. C) Credit to capital stock. D) Credit to revenue. _____ 8. A future economic benefit owned or controlled by an entity is: A) A revenue. B) An asset. C) A liability. D) A contra asset until used. _____ 9. Adjusting entries are primarily needed for: A) Cash basis accounting. B) Accrual accounting.
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This note was uploaded on 10/26/2009 for the course ACTP 5712 taught by Professor Baker during the Summer '09 term at Nova Southeastern University.

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Final Exam 1 - Multiple Choice Questions 1. The accounting...

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