Reference no: EM132908786

Problem 1: Which of the following would result if the owner invested cash in the business?

A) Cash would increase and Capital would decrease.

B) Cash would increase and Capital would increase.

C) Cash would decrease and Capital would increase.

D) An investment by the owner is not a business transaction.

Problem 2: When speaking of the Standard Account Form, it is TRUE to say that

A) It is not used in business records today.

B) The form has no room for indicating either a debit or a credit.

C) There is no Date column included in this form.

D) All of a company's accounts together form a ledger.

Problem 3: With respect to the balancing of an account, which one of these statements is FALSE?

A) If the total on the credit side was the larger, the balance is a credit.

B) Dollar signs are always used to designate a balance amount.

C) Footings of each side of the account are needed to determine the balance.

D) If the total on the debit side was the larger, the balance is a debit.

Problem 4: Accounts Receivable had a normal starting balance of $1000. There were debit postings of $800 and credit postings of $400 during the month. The ending balance is

A) $600 credit.

B) $1,400 debit.

C) $2,200 debit.

D) $1,400 credit.