Multiple Choice Questions:

1. A chart of accounts does NOT include

a. Assets.

b. Liabilities.

c. Owner's equity.

d. Names of customers.

2. When delivery equipment is purchased on account, the transaction to be entered by the purchaser includes

a. Debiting Delivery Equipment and crediting Accounts Payable.

b. Debiting Delivery Expense and crediting Cash.

c. Debiting Delivery Expense and crediting Accounts Payable.

d. Debiting Delivery Equipment and crediting Cash.

3. Service revenue received in cash is entered by

a. Debiting Cash and crediting Service Revenue.

b. Debiting Service Revenue and crediting Cash.

c. Debiting Cash and crediting Accounts Payable.

d. Debiting Accounts Payable and crediting Cash.

4. An asset cost $33,000. It has an expected useful life of 5 years and an expected salvage value of $3,000. Depreciation expense for the first year of the asset's life using the straight-line method is

a. $6,000.

b. $6,600.

c. $10,000.

d. $13,200.

Answer rating: 100% (QA)

1 d Names of customers 2 a D... View the full answer