PARTI-_ MULTIPLE CHOICE (2% points each) Instructions: Choose the best answer for each of the following questions. A post-closing trial balance contains a) 1 ) only temporary accounts. b) only permanent accounts. c) permanent and temporary accounts d) only balance sheet and income statement accounts, but no others. e) There is no such thing as a post-closing trial balance. It is called an adjusted trial balance. Which account will have a zero balance after journalizing and posting closing entries? b) service revenue _ 2) a) office supplies c) Prepaid Insurance. d) Accumulated depreciation. e) None of these would have a zero balance. 3) Which one of the following accounts is not closed at the end of an accounting period? a) Accumulated Depreciation - Equipment b) Depreciation Expense-Equipment c) Dividends d) Service Revenue e) Insurance Expense _ 4) Accounts payable normally has a a) b) c) d) balance. To decrease it you must give it a debit credit debit credit credit credit debit 5) Limited liability (no liability beyond the investment) is enjoyed by the owner(s) of a a) corporation b) partnership c) proprietorship d) All of the above. 6) Using perpetual inventory, the entry to record a sale of S600 with terms of a) 2/10, n/30 will includea debit to Sales Discounts for $12 d) e) credit to Accounts Receivable for $600. credit to Sales for $600. b) debit to Sales for $588. c) debit to Cash of $588. The entry to collect a S600 invoice with terms of 2/10, n/30 within the discount period includes a a) --7) debit to Sales Discounts for $12. debit to Cash of $588. c) d) credit to Accounts Receivable for $600. all of the above. b) 8) On Feb 5 Sutton Co. purchased inventory on account 2/10, n30 and recorded the tran using perpetual inventory. On Mar 5 they paid the bill with cash. The entry needed on Mar 5 is saction correctly a) debit Accounts Payable and credit Cash. d) debit Cash and credit Inventory e) debit Accounts Payable, debit Purchase b) debit Inventory and credit Cash. c) debit Cash and Inventory, and credit Discounts, and credit Cash. Accounts Payable. 9) O using perpetual inventory. On Feb 14 they paid the bill. The entry needed on Feb 14 includes a n Feb 5 Sutton Co. purchased inventory on account 2/10, n30 and recorded the transaction correctly debit to Inventory b) a) c) debit to Purchase Discounts. d) credit to Purchase Discounts. credit to Inventory -10) On Feb using PERLODIC inventory. On Feb 14 they paid the bil. The entry needed on Feb 14 includes a 5 Sutton Co. purchased inventory on account 2/10, n30 and recorded the transaction correctly a) b) debit to Inventory credit to Inventory c) debit to Purchase Discounts. d) credit to Purchase Discounts