Answer the following Multiple-Choice Questions by choosing the correct answer among the proposed ones. SHOW ALL YOUR CALCULATIONS. 1. Source documents: A. Include the ledger. B. Are the sources of accounting information. C. Must be in electronic form. D. Are based on accounting entries. E. Include the chart of accounts. 2. 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. 3. An account used to record the owner's investments in the business is called a(n): A. Withdrawals account. B. Capital account. C. Revenue account. D. Expense account. E. Liability account. 4. The account used to record the transfers of assets from a business to its owner is: A. A revenue account. B. The owner's withdrawals account. C. The owner's capital account. D. An expense account. E. A liability account. 5. A debit: A. Always increases an account. B. Is the right-hand side of a T-account. C. Always decreases an account. D. Is the left-hand side of a T-account. E. Is not need to record a transaction. 6. The right side of a T-account is a(n): A. Debit. B. Increase. C. Credit. D. Decrease. E. Account balance. 7. The primary objective of financial accounting is: A. To serve the decision-making needs of internal users. B. To provide financial statements to help external users analyze an organization's activities. C. To monitor and control company activities. D. To provide information on both the costs and benefits of looking after products and services. E. To know what, when, and how much to produce. 8. The area of accounting aimed at serving the decision making needs of internal users is: A. Financial accounting. B. Managerial accounting. C. External auditing. D. SEC reporting. E. Bookkeeping. 9. External users of accounting information include all of the following except: A. Shareholders. B. Customers. C. Purchasing managers. D. Government regulators. E. Creditors. 10. Use the following information as of December 31 to determine equity. A. $57,000. B. $141,000. C. $297,000. D. $438,000. E. $579,000. 11. Determine the net income of a company for which the following information is available for the month of May. A. $190,000. B. $210,000. C. $230,000. D. $400,000. E. $610,000. 12. A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount of owner's equity? A. $17,000. B. $29,000. C. $71,000. D. $88,000. E. $105,000. 13. A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year? A. $45,000. B. $92,000. C. $98,000. D. $210,000. E. $282,000. 14. Robert Haddon contributed $70,000 in cash and land worth $130,000 to open a new business, RH Consulting. Which of the following general journal entries will RH Consulting make to record this transaction? A. Debit Assets $200,000; credit Haddon, Capital, $200,000. B. Debit Cash and Land, $200,000; credit Haddon, Capital, $200,000. C. Debit Cash $70,000; debit Land $130,000; credit Haddon, Capital, $200,000. D. Debit Haddon, Capital, $200,000; credit Cash $70,000, credit Land, $130,000. E. Debit Haddon, Capital, $200,000; credit Assets, $200,000. 15. On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of September? A. A $0 balance. B. A $4,300 debit balance. C. A $4,300 credit balance. D. A $5,700 debit balance. E. A $5,700 credit balance. 16. On April 30, Holden Company had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during May? A. $5,000. B. $47,000. C. $52,000. D. $57,000. E. $32,000.