1. A partnership is a business which is :

1.  A partnership is a business which is :

easy to form.

ends with the death of a partner.

owned by more than one person.

All of the above.

2.  A corporation:

can continue indefinitely.

is owned by stockholders.

has limited risk to stockholders.

All of the above.

3.  The payment of accounts receivable would:

increase both assets and liabilities.

increase assets and decrease liabilities.

have a net zero effect.

decrease assets and increase liabilities.

4.  Which accounts are affected when the company provides services to a credit customer?

Assets and capital

Liabilities and capital

Assets and revenue

None of the above.

5.  The Accounts Receivable account is:

a revenue, and it has a normal debit balance.

an expense, and it has a normal credit balance.

a liability, and it has a normal debit balance.

an asset, and it has a normal debit balance.

6.  Accounts Receivable would appear on which financial statement?

Balance Sheet

Income Statement

Owner's Equity Statement

None of the above.

7.  If a trial balance is not equal, you should first:

re-compute the ledger balances.

trace all postings.

re-add the trial balance and calculate the difference.

look for missing transactions.

8.  What type of account is salaries payable?

Asset

Expense

Liability

Owner's equity

9.  The adjusting entry for accrued salaries is to:

debit Salaries Expense; credit Salaries Payable.

debit Salaries Expense; credit Cash.

debit Salaries Payable; credit Salaries Expense.

debit Cash; credit Salaries Expense.

10.  The entry to close the expense account(s) was entered in reverse—Income Summary was credited and the expense account(s) was/were debited. The result of this error is that:

before closing it, Income Summary will have a credit balance.

before closing it, Income Summary will have a debit balance.

the assets will be overstated.

the liabilities will be overstated.