SOLUTION: 2) Which of the following is not an asset account?
A) Notes Payable
B) Cash
C) Building
D) Accounts Receivable
3) ABIC Corporation records business transactions in dolla
Question 1160826: 2) Which of the following is not an asset account?
A) Notes Payable
B) Cash
C) Building
D) Accounts Receivable
3) ABIC Corporation records business transactions in dollars and disregards changes in the value of a dollar over time. Which of the following accounting assumptions does this represent?
A) Economic entity assumption
B) Going concern assumption
C) Accounting period assumption
D) Monetary unit assumption
4) Which of the following is an internal user of a business's financial information?
A) Customers
B) Suppliers
C) Company manager
D) Government
5) Hala incurred $550 as a labor expense and promised to pay within 30 days. Which of the following accounts will increase as a result of this transaction?
A) Accounts Receivable
B) Cash
C) Accounts Payable
D) Retained Earnings
6) Which of the following statements is true of a trial balance?
A) A trial balance is the first step in the accounting cycle.
B) A trial balance is also known as a balance sheet.
C) A trial balance is a list of all accounts with their balances.
D) A trial balance is also known as the chart of accounts.
7) Which of the following statements is true of a sole proprietorship?
A) A sole proprietorship joins two or more individuals as co-owners.
B) The sole proprietor is personally liable for the liabilities of the business.
C) A sole proprietorship is taxed separately from the owner.
D) A sole proprietorship has to pay business income taxes.
8) Posting a transaction means ________.
A) calculating the balance in an account
B) transferring data from the journal to the ledger
C) preparing a summary of account balances
D) finding the account number in the chart of accounts
9) Basic steps in the recording process include all of the following except
A) transfer the journal information to the appropriate account in the statement of financial position.
B) analyze each transaction for its effect on the accounts.
C) enter the transaction information in a journal.
D) All of these answer choices are correct.
10) Which one of the following account groups normally has a credit balance?
A) liabilities and revenues
B) equity and assets
C) assets and liabilities
D) assets and expenses
