1. A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n)
2. A debit is used to record which of the following?
A decrease in an asset account. A decrease in an expense account. An increase in a revenue account. An increase in a contributed capital account. An increase in the dividends account.
3. Wiley Consulting purchased $7,000 worth of supplies and paid cash immediately. Which of the following general journal entries will Wiley Consulting make to record this transaction?
4. Lu Lu's Catering has a debt ratio equal to .3 and its competitor, Able's Bakery, has a debt ratio equal to .7. Determine the statement below that is correct.
Able's Bakery has a smaller percentage of its assets financed with liabilities as compared to Lu Lu's. a)Able's Bakery's financial leverage is less than Lu Lu's. b)Able's Bakery's financial leverage is greater than Lu Lu's. c)Lu Lu's has a higher risk from its financial leverage. d)Higher financial leverage involves lower risk.
5. The balance column in a ledger account is:
6. The record of all accounts and their balances used by a business is called a:
7: An account used to record the stockholders' investments in a business is called a(n):