11. Which of the following would be used to record the sale of goods on credit for the period?
A. A journal entry
B. An adjusting entry
C. A closing entry
D. A temporary account
12. Which of the following would be used to record the purchase of a new piece of equipment during the period?
A. A journal entry
B. An adjusting entry
C. A closing entry
D. A temporary account
13. Recording a transaction in two places in the accounts is an example of which principle?
A. Accrual accounting
B. Closing the books
C. Adjusting the trial balance
D. Double-entry bookkeeping
14. On May 15th, Bain Bathtubs signed a lease to rent a storefront starting on June 1st
for the next two years at $1,000 per month. They paid the first two months' rent in advance on signing the lease. On May 15th
how would the transaction be recorded?
A. An increase in expenses of $2,000 and a decrease in cash of $2,000.
B. An increase in expenses of $24,000 and a decrease in cash of $24,000.
C. An increase in prepaid rent of $2,000 and a decrease in cash of $2,000.
D. An increase in prepaid rent of $24,000 and a decrease in cash of $24,000.
15. On May 15th
Bain Bathtubs signed a lease to rent a storefront starting on June 1st
for the next two years at $1,000 per month. They paid the first two months' rent in advance on signing the lease. On May 15th
how would the transaction be recorded?
A. Dr. Rent expense $2,000, Cr. Cash $2,000
B. Dr. Rent expense $24,000, Cr. Cash $24,000
C. Dr. Prepaid rent $2,000, Cr. Cash $2,000
D. Dr. Prepaid rent $24,000, Cr Cash $2,000 Cr. Rent payable $22,000
16. Canada Corporation has hired a new sales manager to start work next month. She will earn $65,000 per year plus a bonus to be determined at year-end. At the time of the hiring, how would the event be recorded?
A. An increase in assets and an increase in salaries payable.
B. An increase in expenses and an increase in salaries payable.
C. A decrease in retained earnings and an increase in salaries payable,
D. It would not be recorded.
17. Which of the following account balances increases with debits?
A. Accounts payable
B. Cash sales
C. Retained earnings
D. Salary expense
18. Which of the following account balances increases with credits?
A. Salary expense
B. Prepaid rent
C. Cash sales
D. Dividends
19. Which of the following normally has a credit balance?
A. Accounts receivable
B. Capital assets
C. Prepaid insurance
D. Retained earnings
20. Which of the following normally has a debit balance?
A. Accumulated depreciation
B. Accounts payable
C. Depreciation expense
D. Retained earnings