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Final Review - Debits increase assets and expense accounts...

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Debits increase assets and expense accounts and decrease liability and rev  accounts Credits increase liability and rev accounts and decrease assets and expense  accounts FINAL REVIEW 1) Which of the following statements is always true? a) The chart of accounts lists account names and amounts. b) The chart of accounts lists account names and numbers. c) The chart of accounts identifies transactions to be recorded. d) The chart of accounts is one of the basic financial statements. 2) Which of the following is an example of an observable external event? 3) Which of the following does  not  demonstrate the “give and take” nature of  transactions? 4) Michelle Corporation received a $200,000 investment from a new  stockholder.  Which of the following best reflects the journal entry recorded? Instructor’s Manual, Chapter 2 2.1
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5) Sonic Corporation acquired a new machine.  It signed a note to pay for the  machine over a 5-year period.  Which of the following best reflects the journal  entry recorded? a) Debit cash, credit machine b) Debit machine, credit cash c) Debit machine, credit note payable d) Debit machine, credit retained earnings 2.2 Fundamentals of Financial Accounting
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6) Anchor Banker Co. acquired $500 worth of supplies on credit.  Which of the  following journal entries would be recorded? 7) Dave Company borrowed $70,000 from the bank.  Which of the following  accounts would be affected?
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