Pick one from the multiple choices for each quesiton.

1)Your company receives $250 from a customer in payment of an invoice. The transaction should be recorded as:

Credit of $250 to Cash, Debit of $250 to Accounts Receivable

Debit of $250 to Cash, Credit of $250 to Accounts Receivable

Credit of $250 to Cash, Debit of $250 to Sales

Credit of $250 to Accounts Receivable, Debit of $250 to Sales

Debit of $250 to Cash, Credit of $250 to Sales

2.)An asset account will normally have:

A debit balance

There is no normal balance

A credit balance

A zero balance

3.)The Income Statement includes the following accounts:

Assets, Liabilities, & Owners Equity

Cash and Revenue

Revenues, Expenses, & Owners Equity

Revenue and Expenses

Expenses and Liabilities

4.)Recording a debt to accounts payable will:

Have no effect on the account balance

Decrease the account balance

Depend on the current balance as to if it increases/decreases

Increase the account balance

5.)An account that starts with a 1 will indicate to the reader that the account is:

An Asset

Expense

Revenue

Owners Equity

A Liability

6.)Current liabilities include:

All of these

Notes Payable

Wages Payable

None of these

Accounts Payable

7.)Information from the following accounts would be included in the Income Statement:

Wages Expense, Supplies Expense, Sales

Accounts Payable, Accounts Receivable, Cash

Sales, Depreciation, Accounts Payable

Stock, Depreciation, Utilities Expense

Cash, Sales, Notes Payable

8.)If the company is profitable the owners equity account will have:

A debit balance

A zero balance

There is no normal balance

A credit balance

9.)An expense account will normally have:

A debit balance

A credit balanceA zero balance

There is no normal balance

A zero balance

10.)Recording a debit to cash will:

Have no effect on the account balance

Depend on the current balance as to if it increases/decreases

Increase the account balance

Decrease the account balance