Financial accounting practice final

Financial accounting practice final - 1. Which of the...

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1. Which of the following best describes accounting? a. Can be thought of as the "language of business." b. Is of limited or little use to individuals outside of the business. c. Records economic data but does not communicate the data to users. d. Relies upon concepts and principles that are independent of specific user needs. 2. A credit may represent a(n): a. increase in asset accounts. b. increase in liability accounts. c. decrease in the capital account. d. increase in expense accounts. 3. Decreases in owner's equity from using up assets or consuming services attributable to business activities are called: a. drawings. b. revenues. c. expenses. d. liabilities. 4. The balance in Websavvy's supplies account on December 31 is $3,000. If the supplies used during the year
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a. Debit Supplies $2,250, credit Supplies Expense $2,250. b. Debit Supplies Expense $750, credit Supplies $750. c. Debit Supplies $250, credit Supplies Expense $250. d. Debit Supplies Expense $750, credit Accounts Payable $750. 5. Which of the following statements is FALSE? a. The unadjusted trial balance serves as a control to verify that the total of the debit balances equals the total of the credit balances. b. The adjusting entries must be entered on the work sheet in a particular order. c. The total of the adjustments column on the work sheet is a control to verify the debits equal the credits for the adjustment data and adjusting entries. d. All statements are true. 6. Depreciation expense appears on the: a. balance sheet. b. owner's equity statement.
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Financial accounting practice final - 1. Which of the...

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