31) A transaction that includes a debit to an expense and a credit to a liability indicates that:
A) revenues increased.
B) expenses decreased.
C) liabilities increased.
D) cash decreased.
32) The purchase of equipment involving a cash down payment and a promise to pay the balance in the future would include:
A) a debit to Cash and a credit to Equipment.
B) a debit to Note Payable and a credit to Cash.
C) a credit to Cash and a credit to Accounts Payable.
D) a debit to Cash and a debit to Note Payable.
33) The purchase of office computers for cash would include a debit to:
A) Cash and a credit to Office Equipment.
B) Office Equipment and a credit to Accounts Payable.
C) Accounts Receivable and credit to Office Equipment.
D) Office Equipment and a credit to Cash.
34) A company sold land for the same price that they paid for it last year. When entering this transaction in the journal, there will be a:
A) credit to Land.
B) debit to Land.
C) debit to Accounts Payable.
D) credit to Accounts Receivable.
35) A partner in the partnership called Sturm Company purchased a new yacht with his own funds. Sturm Company would:
A) debit an asset account.
B) credit a revenue account.
C) credit a liability account.
D) not record the transaction in their books.
36) Jaye Company purchased a new building by signing a note for $20,000. The entry to record the transaction is:
A)
Cash
|
20,000
|
|
Note Payable
|
|
20,000
|
B)
C)
Note Payable
|
20,000
|
|
Cash
|
|
20,000
|
D)
Building
|
20,000
|
|
Notes Payable
|
|
20,000
|
37) When posting a journal entry to the ledger, we transfer:
A) the dollar amount of debits in the journal entry to the appropriate accounts.
B) the dollar amounts of credits in the journal entry to the appropriate accounts.
C) the name of the person who prepared the journal entry.
D) A and B.
38) A business paid $40,000 cash to purchase equipment. The business would:
A) debit Equipment for $40,000 and credit Accounts Payable for $40,000.
B) debit Equipment for $40,000 and credit Cash for $40,000.
C) debit Cash for $40,000 and credit Note Payable for $40,000.
D) debit Accounts Payable for $40,000 and credit Cash for $40,000.
39) A business purchased office supplies of $10,000 using a note. The business would:
A) debit Supplies for $10,000 and credit Accounts Payable for $10,000.
B) debit Supplies for $10,000 and credit Notes Payable for $10,000.
C) debit Note Receivable for $10,000 and credit Supplies for $10,000.
D) debit Note Receivable for $10,000 and credit Supplies Expense for $10,000.
40) A business purchased office supplies of $10,000 on account. The business would:
A) debit Accounts Receivable for $10,000 and credit Supplies for $10,000.
B) debit Supplies for $10,000 and credit Cash for $10,000.
C) debit Accounts Payable for $10,000 and credit Supplies for $10,000.
D) debit Supplies for $10,000 and credit Accounts Payable for $10,000.