Question : 11.A revenue account a. increased with a debit. b. not considered to : 1241824

 

11.A revenue account

a. is increased with a debit.

b. is not considered to be an item on the income statement.

c. is reported on the balance sheet at the end of the accounting period.

d. when offset with expenses ultimately leads to net income and an increase to retained earnings.

12.The declaration of dividends

a. increases with a credit.

b. decreases retained earnings.

c. is necessary for proprietorships.

d. is an expense account on the income statement.

13.Which one of the following changes describes the receipt of $4,000 from the issuance of a long-term note payable?

a. Assets and shareholders’ equity increase by $4,000.

b. Assets and shareholders’ equity decrease by $4,000.

c. Assets and liabilities increase by $4,000.

d. Assets and liabilities decrease by $4,000.

14.Which of the following changes describes the purchase of $3,000 of inventory through payment on credit?

a. Assets and shareholders’ equity increase by $3,000.

b. Assets and shareholders’ equity decrease by $3,000.

c. Assets and liabilities increase by $3,000.

d. Assets and liabilities decrease by $3,000.

15.Providing $5,000 of services to customers on account causes

a. assets and shareholders’ equity to decrease by $5,000.

b. assets and shareholders’ equity to increase by $5,000.

c. assets and liabilities to increase by $5,000.

d. assets and liabilities to decrease by $5,000.

16.Which of the following changes describes the payment of $2,000 for cash dividends?

a. Assets and shareholders’ equity increase by $2,000.

b. Assets and shareholders’ equity decrease by $2,000.

c. Assets and liabilities increase by $2,000.

d. Assets and liabilities do not change.

17.The balance sheet reported supplies of $1,900 at December 31, 2015. On December31, 2015, the actual supplies on hand amounted to $1,400. The adjusting entry required at the end of December 31, 2015 is

 

a.

Supplies

1,900

 

 

Supplies Expense

1400

 

 

 

Cash

 

3,300

b.

Supplies Expense

1,900

 

 

 

Supplies

 

1,900

c.

Supplies

1,400

 

 

 

Supplies Expense

 

1,400

d.

Supplies Expense

500

 

 

 

Supplies

 

500

 

18.Which of the following changes describes the purchase of $4,000 of equipment financed by the issuance of a long-term note payable?

a. Assets and shareholders’ equity increase by $4,000.

b. Assets and shareholders’ equity decrease by $4,000.

c. Assets and liabilities decrease by $4,000.

d. Assets and liabilities increase by $4,000.

19.Acacia Company provided landscaping services and received $3,000 from customers immediately. Which of the following occurred?

a. Assets and shareholders’ equity increase by $3,000.

b. Assets and shareholders’ equity decrease by $3,000.

c. Assets and liabilities increase by $3,000.

d. Assets and liabilities decrease by $3,000.

20.Lakesha Corp. purchased $3,000 of supplies on account. The supplies will be used over the next few months. This event causes

a. assets and shareholders’ equity to increase by $3,000.

b. assets and shareholders’ equity to decrease by $3,000.

c. assets and expenses to decrease by $3,000.

d. assets and liabilities to increase by $3,000.