141. Which of the following is not considered to be a liability?
A. Wages Payable
B. Accounts Receivable
C. Unearned Revenues
D. Accounts Payable
142. Which of the following statements is not true about liabilities?
A. Liabilities are debts owed to outsiders.
B. Account titles of liabilities often include the term “payable”.
C. Cash received before services are performed are considered to be liabilities.
D. Liabilities do not include wages owed to employees of the company.
143. Stockholders’ equity will be reduced by all of the following accounts except:
A. Revenues
B. Expenses
C. Dividends
D. All are true.
144. Expenses can result from:
A. increasing stockholders’ equity.
B. consuming services.
C. using up liabilities.
D. all are true.
145. The chart of accounts classify the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?
A. 1-Assets, 2-Liabilities, 3-Stockholders’ Equity, 4-Expenses, 5-Revenues
B. 1-Assets, 2-Liabilities, 3-Stockholders’ Equity, 4-Revenues, 5-Expenses
C. 1-Assets, 2-Stockholders’ Equity, 3-Revenues, 4-Expenses, 5-Dividends
D. 1-Stockholders’ Equity, 2-Dividends, 3-Revenues, 4-Expenses
146. The ____ is where a transaction can first be found on the accounting records.
A. chart of accounts
B. income statement
C. balance sheet
D. journal
147. The process of recording a transaction in the journal is called
A. recording
B. journalizing
C. posting
D. summarizing
148. Joshua Scott transferred cash from a personal bank account to an account to be used for the
business in exchange for capital stock, $65,000. How would the journal entry for this transaction be entered in the journal?
A. Cash 65,000
Capital Stock 65,000
B. Cash 65,000
Retained Earnings 65,000
C. Cash 65,000
Accounts Payable - Joshua Scott 65,000
D. Cash 65,000
Fees Earned 65,000
149.
April
|
23
|
Cash
|
|
14,000
|
|
|
|
Fees Earned
|
|
|
14,000
|
|
|
|
|
|
|
The journal entry will:
A. Increase Revenues and decrease Cash
B. Increase Cash and decrease Revenues
C. Increase Cash and increase Revenues
D. Decrease Cash and decrease Revenues
150.
May
|
24
|
Land
|
|
53,000
|
|
|
|
Cash
|
|
|
53,000
|
|
|
Purchased land for business
|
|
|
|
|
|
|
|
|
|
What effects does this journal entry have on the accounts?
A. Increase to Cash and increase to Land
B. Increase to Land and decrease to Cash
C. Decrease to Cash and decrease to Land
D. Increase to Cash and decrease to Land