Question

3) Cash Service Revenue Salaries Expense Accounts Payable C Retained Earnings Utilities Expense Accounts Receivable Common Stock Dividends How many of the above accounts have a normal debit balance? A) Six. C) Four D) Seven. 214) For a journal entry with only two lines, the following entry is valid: Increase in Revenue, Decrease in Expense A) True B) False 215) For a journal entry with only two lines, the following entry is valid Increase in Expense, Increase in Dividends. B) True A) False 216) DW has an ending Retained Earnings balance of $$1,100. If during the year DW paid dividends of $4,300 and had net income of $22,500, then what was the beginning Retained Eamings balance? D) $300. B) $69,300. C) $24,300 A) 532,900 217) For a journal entry with only two lines, the following entry is valid: Decrease in a Liability, Decrease in Owners' Equity. B) False A) True 218) The usual balance in a Contra-Dividend account is a: C) DR A) It depends B) CR 219) For a journal entry with only two lines, the following entry is valid: Increase in one Expense, Increase in another Expense A) False B) True 20) The third step in the operating cycle is: C) Purchase D) Collection A) Manufacture B) Sale For a journal entry with only two lines, the following entry is valid: Decrease in an asset, Decrease in a Owners' Equity 1) B) False A) True 30

Answer 1

213.A.Six

Cash , Salaries expense ,Equipment, Utilities Expense ,Accounts Receivable and Dividends have normal debit balance

214.S.False

215.A.False

216.A.$32900

Ending Retained Earnings = Beginning Retained Earnings + Net income - Diviidends

51100 = X + 22500 - 4300 ; X = $32900

217.B.False

218.C.Dr.

219.A.False

220.B.Sale

221.A.True

222.A.No change..as cash is decreased and equipment increased both being assets

223.D.Assets Decreased,liabilities decreased and expenses increased ..Cash decreased, salary payable decreased, salary expense increased.

224.B.Assets increase , Stockholders Equity increases..Accounts receivable increases , Revenue increase which in turn increases retained earnings

225.C,Deferred Revenue

226.A.Net Income = Revenue - Expenses

227.A.First

228.D.Expenses...Expenses are temporary accounts forming part of Income statement

229.A.Past Cashflows

230.A.hires a firm to do some work it was doing itself.

231.A.False

232.D.Generally accepted accounting principles

233.A.$400000 ...Assets less Liabilities = 1200000-800000=$400000

234.B.True

235.D.Deferred Revenues

236.A.Cr.

237.A.Dead Fish...that deteriorate with age