acc 9

QN=71 Which is true about Expenses:

• a. The same as net income.

• b. The excess of expenses over assets.

• c. Resources owned or controlled by a company

• d. Company's earning activities that contribute to increase owner's equity .

• e. The costs of assets or services used to generate revenue.

QN=72 Which is true about Revenues:

• a. The same as net income

• b. The excess of expenses over assets

• c. Resources owned or controlled by a company.

• d. Company's earning activities that contribute to increase owner's equity

• e. The costs of assets or services used.

QN=73 Which type of information would be of most interest to creditors?

• a. Dividend declared

• b. Ability of the company to pay debts

• c. Last year's profit

• d. Current share price

• e. None of these

QN=74 What accounting principle requires credit sales revenue also included in the income statement?

• a. Cash basis

• b. Accrual basis

• c. Accounting period assumption

• d. Monetary unit assumption

• e. Historical cost principle

QN=75 Repayment of the loan for the bank $ 2,000 cash will be recorded in general journal as:

• a. Debit cash, credit Expense

• b. Credit cash , debit expense

• c. Debit cash, credit loan

• d. Credit cash, debit loan

• e. None of these

QN=76 The right side of a T-account is a(n):

• a. Debit.

• b. Increase

• c Credit.

• d. Decrease.

• e. Account balance.

QN=77 A liability account that reports amounts received in advance of providing goods or services. It is about:

• a. Prepaid expense

• b. Liability

• c. Revenue

• d. Unearned revenue

• e. None of these

QN=78 Which statement is true about Mary's capital:

• a. The owner's equity account that contains the amount invested in the sole proprietorship by Mary Smith plus the net income since the company began minus the draws made by Mary Smith since the company began.

• b. The owner's equity account that contains the amount invested in the sole proprietorship by Mary Smith minus the net income since the company began minus the draws made by Mary Smith since the company began

• c. The owner's equity account that contains the amount invested in the sole proprietorship by Mary Smith plus the net income since the company began plus the draws made by Mary Smith since the company began.

• d. The owner's equity account that contains the amount invested in the sole proprietorship by Mary Smith plus the net income since the company began

• e. None of these

QN=79 Which is true about An account balance:

• a. Always a debit.

• b. Is the difference between the total debits and total credits for an account

• c. Is the difference between the total debits and total credits for an account including the beginning balance

• d. None of these

• e. Always a credit.

QN=80 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.

• d. Debit Tim Jones, Withdrawals and credit Cash

• e. Debit Automobiles and credit Cash.