91.The chart of accounts is designed to
a.alphabetize the accounts to make reading easier for financial statement users
b.organize accounts in order of dollar amount to simplify the accounting information for users
c.summarize the transactions and determine ending account balances
d.meet the information needs of a company's managers and other users of its financial statements
92.Which group of accounts is comprised of only assets?
a.Cash, Accounts Payable, Buildings
b.Accounts Receivable, Revenue, Cash
c.Prepaid Expenses, Buildings, Patents
d.Unearned Revenues, Prepaid Expenses, Cash
93.Of the following, which is
trueabout assets?
a.Assets include both physical and intangible items.
b.Assets include only physical items.
c.Assets are the personal property of the stockholders of the company.
d.Assets are the result of selling products or services to customers.
94.Which of the following is
notconsidered to be a liability?
a.Wages Payable
b.Accounts Receivable
c.Unearned Revenues
d.Accounts Payable
95.Which of the following statements is
nottrue about liabilities?
a.Liabilities are debts owed to outsiders.
b.Account titles of liabilities often include the term “payable.”
c.Cash received before a service is performed creates a liability.
d.Liabilities do not include wages owed to employees of the company.
96.The stockholders' equity will be reduced by all of the following
except
a.revenues
b.expenses
c.dividends
d.all of these
97.The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.
Accounts payable$1,500Fees earned$3,600
Accounts receivable1,800Insurance expense1,300
Prepaid insurance2,000Land3,000
Cash3,200Wages expense1,400
Dividends1,200Common stock8,800
Total assets are
a. $10,000
b. $8,000
c. $9,700
d. $9,800
98. Expenses can result from
a. increasing stockholders' equity
b. consuming services
c. using up liabilities
d. purchasing assets
99.In the chart of accounts, each account number has two digits. The first digit indicates the major account group towhich the account belongs. Which of the following correctly identifies the major account groups typicallyrepresented by the numbers 1 through 5?
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
100.The balance of an account is determined by
a.adding all of the debits to all of the credits
b.always subtracting the debits from the credits
c.always subtracting the credits from the debits
d.adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum