12. The balance of an account is determinedbya. Adding all of the debits to all of the credits

b. Always subtracting the debits native the credits

c. Constantly subtracting the credits indigenous the debits

d. Including all the the debits, including all the the credits, and also thensubtracting the smaller sum indigenous the bigger sum

13. The term supplied to explain an cost that hasnot to be paid and also has no yet been well-known in the accounts by aroutine entry is

a. Prepaid

b. Deferred

c. Accrued

d. Matched

14. The process of initially recording a businesstransaction is called

a. Closing

b. Posting

c. Journalizing

d. Balancing

15. Karen Meyer owns and operates crystal CleaningCompany. Recently, Meyer i was withdrawn $10,000 native CrystalCleaning, and also she contributed $6,000, in her name, come the AmericanRed Cross. The donation of the $6,000 must be recordedon the accountancy records of i beg your pardon of the followingentities?

a. Decision Cleaning and also the American Red Cross

b. Karen Meyer"s personal records and the American Red Cross

c. Karen Meyer"s personal records and also Crystal Cleaning

d. Karen Meyer"s an individual records, decision Cleaning, and theAmerican Red Cross

16. Accrued revenues would appear on the balancesheet asa. Assetsb. Liabilities

c. Stockholders" equity

d. Prepaid expenses

17. I m sorry of the complying with is no true through adouble-entry bookkeeping system?

a. The audit equation remains in balance.b. The sum of all debits is always equal come the sum of every creditsin each journal entry.c. Each company transaction will have actually two debits.

You are watching: Which one of the statements below is not a purpose for the journal?

d. Every transaction influence at the very least two accounts.

18. Exactly how does the purchase of tools by signing anote influence the accountancy equation?a. Legacy increase; heritage decreaseb. Heritage increase; liabilities decreasec. Legacy increase; legal responsibility increased. Heritage increase; stockholders" same increases

19. Accounts

a. Do not reflect money amounts

b. Are not offered by entities that manufacture productsc. Are documents of increases and decreases in separation, personal, instance financialstatement itemsd. Space only used by huge entities with plenty of transactions

20. Match the following items come the financialstatement where they deserve to be found. (Hint: some of the items deserve to befound on more than one jae won statement.)A. Balance sheetB. Earnings statementC. Statement of cash flowsD. Retained earnings statement

5.Accounts payable
6.Accounts receivable
7.Operating activities
8.Wages expense
9.Net income

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