Multiple choices

1.         A debit is:

            A)        An increase in an account.

            B)        The right-hand side of a T-account.

            C)        A decrease in an account.

            D)        The left-hand side of a T-account.

            E)        An increase to a liability account.

2.         Of the following accounts, the one that normally has a credit balance is:

            A)        Cash.

            B)        Office Equipment.

            C)        Sales Salaries Payable.

            D)        Owner, Withdrawals.

            E)        Sales Salaries Expense.

3.         If assets are $99,000 and liabilities are $32,000, then equity equals:

            A)        $  32,000.

            B)        $  67,000.

            C)        $  99,000.

            D)        $131,000.

            E)        $198,000.

4.         Internal users of accounting information include:

            A)        Shareholders.

            B)        Managers.

            C)        Lenders.

            D)        Suppliers.

            E)        Customers.

5.         If equity is $300,000 and liabilities are $192,000, then assets equal:

            A)        $108,000.

            B)        $192,000.

            C)        $300,000.

            D)        $492,000.

            E)        $792,000.

6.         An account used to record the owner's investments in the business is called a(n):

            A)        Withdrawals account.

            B)        Capital account.

            C)        Revenue account.

            D)        Expense account.

            E)        Liability account.

7.         Rocky Industries received its telephone bill in the amount of $300, and immediately paid it.  Rocky's general journal entry to record this transaction will include a

            A)        Debit to Telephone Expense for $300.

            B)        Credit to Accounts Payable for $300.

            C)        Debit to Cash for $300.

            D)        Credit to Telephone Expense for $300.

            E)        Debit to Accounts Payable for $300.

8.         Wisconsin Rentals purchased office supplies on credit.  The general journal entry made by Wisconsin Rentals will include a:

            A)        Debit to Accounts Payable.

            B)        Debit to Accounts Receivable.

            C)        Credit to Cash.

            D)        Credit to Accounts Payable.

            E)        Credit to Wisconsin Rentals, Capital.

9.         A debit is:

            A)        An increase in an account.

            B)        The right-hand side of a T-account.

            C)        A decrease in an account.

            D)        The left-hand side of a T-account.

            E)        An increase to a liability account.

10.       Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business, RH Consulting.  Which of the following general journal entries will RH Consulting make to record this transaction?

            A)       

            B)                                                       

            C)                                                       

            D)                                                       

            E)                                                       

11.       If Tim Jones, the owner of Jones Hardware proprietorship, uses cash of the business to purchase a family automobile, the business should record this use of cash with an entry to:

            A)        Debit Salary Expense and credit Cash.

            B)        Debit Tim Jones, Salary and credit Cash.

            C)        Debit Cash and credit Tim Jones, Withdrawals