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1. The effects on the basic accounting equation of performing services for cash are to

(b) increase assets

and increase stockholders' equity.

 

2. During 2012, Gibson Company assets decreased

$50,000 and its liabilities decreased $90,000. Its stock-holders' equity therefore:

(a)$40,000 increase


5. Which statement about an account is true?

(b) An account is an individual accounting record ofincreases and decreases in specific asset, liability,and stockholders' equity items


6. Debits:

(c) Increase assets and decrease liabilities


10. Which is not part of the recording process

(b) preparing a trial balance


11.Which of these statements about a journal is false?

(a) It contains only revenue and expense accounts


15. A trial balance will not balance if:

(c) a $100 cash dividend is debited to dividends for $1,000 and credited to Cash

 

18. Journalize these accounting transactions:


(a) Stockholders invested $12,000 in the business inexchange for common stock.

(b) Insurance of $800 is paid for the year.

(c) Supplies of $1,800 are purchased on account.

(d) Cash of $7,500 is received for services rendered.

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