Reference no: EM132643102

Question 1: When owner's equity decreases, one of the following must occur:

a. Withdrawals decreases
b. An asset increases
c. An income increases
d. A liability increases

Question 2: What function do accounting journals serve in the accounting process?

a. Classifying
b. Summarizing
c. Reporting
d. Recording

Question 3: When cash is debited, a typical credit is to

a. Withdrawals
b. Accounts payable
c. Accounts receivable
d. Expenses

Question 4: Payment of insurance premium is advance gives rise to

a. Prepaid expense
b. Unearned revenue
c. Accrued income
d. Accrued expense

Question 5: A ledger is defined as a collection of

a. All statement of financial position accounts
b. All income statement accounts
c. Account titles-asset, liability, equity, income and expense accounts
d. Transactions