MULTILE CHOICE

6) A simple journal entry a) is a memorandum entry. b) Consists of one debit and one credit. c) Consists of one debit and two credits. d) Consists of two debits and one credit. 7) When the business performs services to a client, there will be- a) Increase in asset and increase in owner's equity b) Decrease in asset and increase in liability c) Increase in liability and decrease in asset. d) Decrease in asset and decrease in owner's equity 8) If an owner invests her laptop computer and printer in the business, there is an increase to a) Cash and Capital b) Cash and Withdrawals c) Computer Equipment and Capital d) Computer Equipment and Cash 9) The following can be found in an income statement except a) assets: b) expenses c) income d) profit or loss 10) In recording transactions a) Assets, expenses and capital accounts are debited for increases. b) Assets, expenses and drawing accounts are debited for increases. c) Liabilities, revenues and drawing accounts are debited for increases. d) The word debit means increase and the word credit means decrease