2103 Chapter 1 and 2

Which of the following is NOT one of the four basic financial statements?

• Balance Sheet
• Audit Report
• Income Statement
• Statement of Cash Flows

Which of the following is NOT an asset account?

• Cash
• Land
• Equipment
• Common Stock

Which of the following statements describes a transaction that would be recorded in the accounting system?

• An exchange of an asset for a promise to pay

• An exchange of a promise for another promise

• Both of these

• None of these

Which of the following is true regarding debits and credits

• total debits must equal total credits
• all accounts are decreasted with a debit and increased with a credit
• debits and credits in accounting means debit card or credit card
• all of these things are true

In accounting, a journal entry…

• starts with "Dear Diary…"
• shows the effects of a transaction on accounts
• only ever happen when cash is exchanged
• is the same as the general ledger

Assets represent…

• resources owned buy a business
• amounts due to creditor
• amounts contributed by investors
• amounts owed to investors