Which transaction would cause one asset to increase and another asset to decrease?
A. The owner invested cash in the business.
B. The business paid a creditor.
C. The business incurred an expense on credit.
D. The business bought supplies for cash.
The net income or net loss is calculated on the
A. balance sheet.
B. statement of owners equity.
C. income statement.
D. None of the above
Which financial statement is considered a link between the income statement and balance sheet?
A. Statement of cash
Accounts Payable had a normal starting balance of $800. There were debit postings of $600 and credit
postings of $300 during the month. The ending balance is a
A. $500 credit.
B. $1,000 debit.
C. $500 debit.
D. $1,000 credit.
An asset would be debited and
The process that begins with recording business transactions and includes the completion of the
financial statements is the
A. calendar year.
B. natural business year.
C. fiscal year.
D. accounting cycle.
A business provided services to a cash customer. T
If the adjustment for Supplies used during the period wasnt made,
A. expenses would be too low.
B. assets would be too low.
C. expenses would be too high.
D. revenue would be too high.
If the balance of supplies at the start of the month was $900 and at t
A nonsufficient-funds check was returned to your company. How does the bank treat this on your bank
A. Its added to the bank balance.
B. Its shown as a debit memo.
C. Its shown as a credit memo.
D. None of the above
Which item should be added t
Which of the following statements is false?
A. Payroll Tax Expense is an expense account.
B. FICA-Social Security Tax Payable increases on the credit side of the account.
C. Payroll Tax Expense increases on the debit side of the account.
D. SUTA Tax Payab
Entries to customers accounts for sales are posted in the _ subsidiary ledger.
A. Accounts Receivable
B. Accounts Payable
C. Fixed Asset
R&R Lumber reports gross sales of $70,000. If sales returns and allowances are $10,000 and sales
A list of creditors with balances owed is called a
A. schedule of accounts receivable.
B. schedule of accounts payable.
C. list of suppliers.
D. trade list.
If a display rack was purchased for the store, which account would be increased?
A. Store Equipmen