Question 14 (Q 4)

Multiple Choice Questions Part 1 (circle your answer)

1. Transactions are first recorded in a(n):

1. trial balance
2. journal
3. financial statement
4. ledger

2. A contra account has two characteristics:

1. A contra account is paired with a companion account and has a normal balance that is the opposite of the companion account
2. A contra account is linked to a companion account and has the same normal balance.
3. A contra account is linked to a partner account and has no normal balance.
4. A contra account is attached to a partner account and is shown as a memo only.

3. Which of the following is not a tangible capital asset?
   1. buildings
   2. land
   3. copyrights
   4. equipment

4. All of the following are examples of current liabilities, except for
   1. accrued expenses.
   2. unearned revenues.
   3. interest payable.
   4. prepaid expenses.