61. Source documents:
A. Include the ledger.
B. Are the originsof accounting information.
C. Must be in electronic form.
D. Are based on accounting entries.
E. Include the chart of accounts.
62. For what reason do most sellers require customers to have their receipts in order to exchange or return purchased items?
A. The receipt contains coded information thatthe seller needs to prepare and analyze the trial balance.
B. Sellers wish to ensure that the sale in question was rung up on the register in the first place.
C. This is a legal requirement mandated by a federal law.
D. The receipt is serving as a promissory note.
E. To create an environment in which customers do not want to return items.
63. A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n):
A. Journal
B. Posting
C. Trial balance
D. Account
E. Chart of accounts
64. An account used to record the owners' investments in the business is called:
A. Dividends
B. Common Stock
C. Revenue
D. Expense
E. Liability
65. The account used to record the transfers of assets from a business to its stockholders is:
A. A revenue account
B. The dividends account
C. Common stock account
D. An expense account
E. A liability account
66. Which of the following statements is correct?
A. When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense.
B. Promises of future payment are called accounts payable.
C. Increases and decreases in cash are always recorded in the retained earnings account.
D. An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business.
E. Liabilities include accounts receivable.
67. Unearned revenues are:
A. Revenues that have been earned and received in cash.
B. Revenues that have been earned but not yet collected in cash.
C. Liabilities created when a customer pays in advance for products or services before the revenue is earned.
D. Recorded as an asset in the accounting records.
E. Increases to retained earnings.
68. Prepaid expenses are:
A. Payments made for products and services that do not ever expire.
B. Classified as liabilities on the balance sheet.
C. Decreases in retained earnings.
D. Assets that represent prepayments of future expenses.
E. Promises of payments by customers.
69. A written promise to pay a definite sum of money on a specific future date is a(n):
A. Unearned revenue
B. Prepaid expense
C. Credit account
D. Note payable
E. Account receivable
70. A collection of all accounts (with account balances) used by a business is called a:
A. Journal
B. Book of original entry
C. General Journal
D. Balance column journal
E. General Ledger