1. Clement Company paid an account payable related to a previous utility bill of $1,000. This transaction should
be recorded as follows on the payment date:
A. Debit cash $1,000, credit accounts payable $1,000.
B. Debit cash $1,000, credit utilities expense $1,000.
C. Debit accounts payable $1,000, credit cash $1,000.
D. Debit utilities expense $1,000, credit cash $1,000.
2. At the beginning of December, Global Corporation had $1,000 in supplies on hand. During the month,
supplies purchased amounted to $2,000, but by the end of the month the supplies balance was only $1,200.
What is the appropriate month-end adjusting entry?
A. Debit supplies expense $1,800, credit supplies $1,800
B. Debit cash $1,800, credit supplies $1,800
C. Debit cash $1,200, credit supplies $1,200
D. Debit supplies $1,800, credit supplies expense $1,800
3. Receiving cash from an account receivable:
A. Increases one asset and decreases another asset.
B. Increases a revenue and decreases an asset.
C. Increases an asset and increases a revenue.
D. Decreases a liability and increases an asset.
4. What key piece of legislation was passed in response to corporate accounting scandals by Enron, Worldcom,
A. 1934 Securities Exchange Act.
B. Sarbanes-Oxley Act.
C. Regulation Fair Disclosure.
D. 1933 Securities Act.
5. Which of the following statements is correct?