Reference no: EM1316115

Multiple questions on accounting principles

1.   Joe's Appliances purchased inventory for $12,800 on credit. This transaction:

a.         increased accounts payable and inventory

b.        increased inventory and decreased accounts receivable

c.         increased inventory and accounts receivable

d.        increased inventory and decreased accounts payable

2.  Music Land sold goods for $4,800 on credit. This transaction:

a.         increased accounts payable and owners' equity

b.        increased accounts receivable and cash

c.         increased accounts receivable and owners' equity

d.        increased cash and owners' equity

3.  Music Land collected $2,400 from customers for goods sold in the previous transaction. This transaction:

a.         decreased accounts payable and owners' equity

b.        decreased accounts receivable and increased cash

c.         decreased accounts receivable and increased owners' equity

d.        increased cash and owners' equity

4.   Which of the following transactions decreases assets and liabilities?

a.         pay suppliers for goods purchased on credit

b.        provide services to customers for cash

c.         borrow from a bank

d.        purchase equipment for cash

5. Amounts owed by customers for goods sold on credit are called:

a.         accounts receivable

b.        accounts payable

c.         cost of goods sold

d.        inventory

6.   Which of the following transactions decreases assets and owners' equity?

a.         purchase supplies for cash

b.        pay suppliers for goods purchased on credit

c.         use supplies

d.        repay amount borrowed from a bank

7.   Amounts owed to suppliers for credit purchases are called:

a.         accounts receivable

b.        accounts payable

c.         cost of goods sold

d.        notes payable

8.  The cost of merchandise sold in a period is called:

a.         supplies

b.        accounts payable

c.         cost of goods sold

d.        inventory

9.  Lakeside Realty purchased supplies for $250. This transaction:

a.         increased supplies and decreased cash

b.        increased inventory and decreased cash

c.         increased supplies expense and decreased cash

d.        increased supplies expense and decreased supplies

10.  Lakeside Realty used supplies costing $50. This transaction:

a.         decreased supplies and decreased cash

b.        increased inventory and decreased cash

c.         increased supplies expense and decreased cash

d.        increased supplies expense and decreased supplies