Reference no: EM131011879

1 ) Comapny purchases a three-year insurance policy for $3000.00. At the end of the first year, Blue Talon adjusts insurance expense by crediting

A. An asset account,
B. a retained earnings account,
C. a liability account,
D. Both B and C
E. none of the above

2) Whitestone Company collected $10,000 on a credit sale. The left-hand side of the entry would be a debit to

A. Accounts Receivable
B. Accounts payable
C. Cash
D. Owners' equity
E. None of the above

3) Yellowstone Incorporated paid salaries of $5000. The debit entry is to

A. Retained earnings
B. Cash
C. Accounts payable
D. Accounts Receivable
E. None of the above

4) Silverstone Incorporated purchases a two-year insurance policy for $8000 cash. Silverstone debits

A. An asset account
B. A liability account
C. And owners' equity account
D. Both B and C
E. None of the above

5) Credit entries to the cash account increase the account, similar to your bank statement. 

TRUE or FALSE