Name: ACC 101 Lab Spring 2020 Lab Assignment #2 Multiple Choice (2 points each) Circle the best answer to each of the following questions. 1. Which of the following statements is True about a journal entry? a. Credits are indented only when there is more than one credit b. Accounts that are decreased are always listed first. c. It can have only one debit and credit entry. d. All debits are always listed before any credits. e. None of the above. 2. Which of the following accounts has a normal Debit balance? a. Common Stock b. Long-term Debt c. Accounts Receivable d. Sales Revenue 3. ERA Company's controller accidentally erased the 3/1/20 balance for the Accounts Receivable account. However, she can see that the 3/31/20 Accounts Receivable balance is $500,000, the company provided services worth $1,500,000 on account during March 2020, and collected $1,800,000 cash related to accounts receivable during March 2020. What was the 3/1/20 Accounts Receivable balance? a. $300,000 b. $400,000 c. $800,000 d. $1,300,000 On April 5, Stella Company provided services and billed its client $110,000. On April 12, Stella Company received $110,000 cash for the services provided earlier in April. 4. The journal entry to record the April 5 transaction will have the following effect on Stella Company's financial statements: a. Total Liabilities will increase by $110,000. b. Total Revenues will increase by $110,000. c. Total Stockholders' Equity will decrease by $110,000. d. Total Assets will decrease by $110,000. c. None of the above. 5. The journal entry to record the April 12 transaction will have the following effect on Stella Company's financial statements: a. Total Liabilities will increase by $110,000. b. Total Revenues will increase by $110,000. c. Total Stockholders' Equity will decrease by $110,000 d. Total Assets will decrease by $110,000. e. None of the above