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Unformatted text preview: 2. The journal entry to record the purchase of supplies on account a. Debits supplies inventory and credits account payable b. Credits supplies inventory and debits cash c. Credits supplies inventory and debits account payable d. Debits supplies expense and credits supplies inventory 3. If the credit to record the payment of an account payable is not posted, a. Expenses will be understated b. Liabilities will be understated c. Cash will be understated d. Cash will be overstated 4. Stuart Inc, a new company, completed these transactions. What will Stuarts total assets equal? (1) Stockholders invested $81,000 cash (2) Sales on account were $15,000 a. $66,000 b. $69,000 c. $96,000 d. $81,000 5. Which of the following transactions will increase an asset and increase revenue? a. Borrowing money from a bank b. Purchasing supplies on account c. Performing a service on account for a customer d. Collecting cash from a customer on an account receivable...
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- Fall '08