1. The retained earnings statement does not show: Answer the retained earnings beginning balance. revenues and expenses. dividends. the ending retained earning balance. 2 points Question 2 1. The correct adjusting entry for recording the depreciation of office equipment would be: Answer debit Depreciation Expense and credit Office Equipment debit Office Equipment and credit Accumulated Depreciation debit Depreciation Expense and credit Accumulated Depreciation debit Office Equipment and credit Depreciation Expense 2 points Question 3 1. Liabilities of a company represent money owed to: Answer customers. owners. creditors. stockholder s 2 points Question 4 1. If the book value of an asset is $12,500 and the accumulated depreciation is $3,500, the original cost of the asset is: Answer $16,000 $9,500 $9,000 $7,500 2 points
Question 5 1. Net income will result during a time period when: Answer assets exceed liabilities. assets exceed revenues. expenses exceed revenues. revenues exceed expenses. 2 points Question 6 1. Which of the following accounts is not closed out (i.e., reduced to zero) at year end? Answer Sales Revenue Depreciation Expense Accumulated Depreciation Rent Expense 2 points Question 7 1. Trademarks would appear in which balance sheet section? Answer
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