Accounting

1. An investment of cash by stockholders into the business will

A. increase​ stockholders' equity.

B. decrease total liabilities.

C. have no effect on total assets.

D. decrease total assets.

2. Which statement is​ false?

A. Dividends are increased by credits.

B. Liabilities are decreased by debits.

C. Assets are increased by debits.

D. Revenues are increased by credits.

3. Where do we first record a​ transaction?

A. Ledger

B. Account

C. Journal

D. Trial balance

4. The journal entry to record the receipt of land and a building and the issuance of common stock

A. debits Land and Building and credits Common Stock.

B. debits​ Land, Building, and Common Stock.

C. debits Common Stock and credits Land and Building.

D. debits Land and credits Common Stock.

5. If the credit to record the purchase of supplies on account is not​ posted,

A. liabilities will be understated.

B. assets will be understated.

C. stockholders' equity will be understated.

D. expenses will be overstated.

6. Purchasing a laptop computer on account will

A. increase total assets.

B. have no effect on​ stockholders' equity.

C. increase total liabilities.

D. All of the listed choices are correct.

7. Purchasing computer equipment for cash will

A. decrease both total liabilities and​ stockholders' equity.

B. increase both total assets and total liabilities.

C. have no effect on total​ assets, total​ liabilities, or​ stockholders' equity.

D. decrease both total assets and​ stockholders' equity.

8. Which of the following transactions will increase an asset and increase a​ liability?

A. Payment of an account payable

B. Purchasing office equipment for cash

C. Issuing stock

D. Buying equipment on account

9. Which of the following transactions will increase an asset and increase​ stockholders' equity?

A. Performing a service on account for a customer

B. Borrowing money from a bank

C. Collecting cash from a customer on an accounts receivable

D. Purchasing supplies on account

10. Which of the following is not an asset​ account?

A. Salary Expense

B. Common Stock

C. Service Revenue

D. None of the listed accounts is an asset.