(Multiple Choice)
1. Which of the following is not an asset account?
a. Salary Expense
b. Service Revenue
c. Common Stock
d. None of the above accounts is an asset.

2. Which statement is false?
a. Revenues are increased by credits.
b. Assets are increased by debits.
c. Liabilities are decreased by debits.
d. Dividends are increased by credits.

3. The journal entry to record the receipt of land and a building and issuance of common stock
a. debits Land and Building and credits Common Stock.
b. debits Land and credits Common Stock.
c. debits Land, Building, and Common Stock.
d. debits Common Stock and credits Land and Building.

4. The journal entry to record the purchase of supplies on account
a. credits Supplies and debits Accounts Payable.
b. debits Supplies Expense and credits Supplies.
c. credits Supplies and debits Cash.
d. debits Supplies and credits Accounts Payable.

5. If the credit to record the purchase of supplies on account is not posted,
a. stockholders’ equity will be understated.
b. assets will be understated.
c. liabilities will be understated.
d. expenses will be overstated.

6. The journal entry to record a payment on account will
a. debit Accounts Payable and credit Retained Earnings.
b. debit Cash and credit Expenses.
c. debit Accounts Payable and credit Cash.
d. debit Expenses and credit Cash.

7. If the credit to record the payment of an account payable is not posted,
a. expenses will be understated.
b. liabilities will be understated.
c. cash will be understated.
d. cash will be overstated.

8. Which statement is false?
a. A trial balance lists all the accounts with their current balances.
b. A trial balance can be taken at any time.
c. A trial balance can verify the equality of debits and credits.
d. A trial balance is the same as a balance sheet.

9. A business’s receipt of a $105,000 building, with a $90,000 mortgage payable, and issuance of $15,000 of common stock will
a. increase stockholders’ equity by $15,000.
b. increase assets by $15,000.
c. increase stockholders’ equity by $105,000.
d. decrease assets by $90,000.

10. Bigtex, a new company, completed these transactions. What will Bigtex’s total assets equal?
1. Stockholders invested $45,000 cash and inventory worth $22,000.
2. Sales on account, $11,000.
a. $56,000
b. $59,000
c. $45,000
d. $78,000