11) Which of the following items are increased with credit entries?
A) Assets and liabilities
B) Liabilities and revenues
C) Assets and expenses
D) Assets and owners' equity
12) Which of the following accounts is increased with a debit entry?
A) Accounts receivable
B) Accounts payable
C) Revenues
D) Common stock
13) Which of the following accounts is increased with a debit entry?
A) Accounts payable
B) Inventory
C) Rent expense
D) Accounts receivable
14) Which of the following accounts are increased with credit entries?
A) Common stock
B) Accounts payable
C) Revenues
D) All of these.
15) Which of the following accounts is decreased with a credit entry?
A) Common stock
B) Accounts payable
C) Accumulated depreciation
D) Inventory
16) Stockit, Inc. issued $2,000 of common stock on February 1, 2011. The journal entry to record this transaction would include ________.
A) a credit to Common stock of $2,000
B) a debit to Cash of $2,000
C) a credit to Notes payable of $2,000
D) more than one of these
17) B. Row, Inc. borrows $2,000 from a bank on January 1, 2011 and agrees to pay it back two years later with 7% interest. On January 1, 2011, the journal entry to record this transaction would include ________.
A) a debit to Notes payable of $2,000
B) a debit to Cash of $2,000
C) a credit to Notes payable of $2,140
D) more than one of these
18) On January 1, B. Row, Inc. purchases $20,000 of equipment by paying $18,000 in cash and issuing a $2,000, 6%, two-year note. The journal entry to record this purchase would include a ________.
A) debit to Equipment of $18,000
B) debit to Cash of $18,000
C) credit to Notes payable of $2,000
D) credit to Notes payable of $2,120
19) The journal entry to record the purchase of merchandise on account would include a ________.
A) credit to Accounts receivable
B) credit to Cash
C) credit to Accounts payable
D) debit to Cost of goods sold
20) The journal entry to record the sale of merchandise on account would include a ________.
A) credit to Accounts receivable
B) credit to Cash
C) debit to Accounts payable
D) debit to Cost of goods sold