Chap004 - Chapter 04 The Bookkeeping Process and...

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Chapter 04 - The Bookkeeping Process and Transaction Analysis Chapter 04 The Bookkeeping Process and Transaction Analysis Multiple Choice Questions 1. An expanded version of the accounting equation could be: A. A + Rev = L + OE - Exp B. A - L = Paid-in Capital - Rev - Exp C. A = L + Paid-in Capital + Beginning Retained Earnings + Rev - Exp D. A = L + Paid-in Capital - Rev + Exp 2. In the seller's records, the sale of merchandise on account would: 3. In an advertiser's records, a newspaper ad submitted and published this week with the agreement to pay for it next week would: 4. In the buyer's records, the purchase of merchandise on account would: 4-1
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Chapter 04 - The Bookkeeping Process and Transaction Analysis 5. A newspaper ad submitted and published this week, with the agreement to pay for it next week would, in the newspaper's records: A. Increase assets and increase revenues. B. Increase assets and decrease liabilities. C. Increase assets and increase expenses. D. Have no effect on total assets. 6. A debit entry will: 7. A credit entry will: 8. A credit entry to an account will: 9. A debit entry to an account will: A. Always decrease the account balance. B. Always increase the account balance. C. Increase the balance of a revenue account. D. Increase the balance of an expense account. 4-2
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Chapter 04 - The Bookkeeping Process and Transaction Analysis 10. An engineering consultant provided $500 of services to a client; the client paid $100 when the bill was submitted and will pay the balance within a week. The consultant will record this transaction by:
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