Problem 1. The Equipment account's proper classification is:
a. Revenue
b. Liability
c. Expense
d. Asset
Problem 2. The Supplies account's proper classification is:
a. Asset
b. Revenue
c. Liability
d. Expense
Problem 3. The Cost of Goods Sold account's proper classification is:
a. Asset
b. Revenue
c. Liability
d. Expense
Problem 4. The Fees Earned account's proper classification is:
a. Asset
b. Liability
c. Owner's equity
d. Revenue
Problem 5. The Accounts Payable account's proper classification and normal account balance are:
a. Asset
b. Liability
c. Owner's equity
d. Revenue
Problem 6. The Inventory account's proper classification is:
a. Revenue
b. Expense
c. Liability
d. Asset
Problem 7. The Accounts Receivable account's proper classification is:
a. Asset
b. Liability
c. Owner's equity
d. Revenue
Problem 8. Altoona Plumbing acquired Office Supplies on account. Which of the following entries properly records this transaction?
a. Debit: Office Supplies; Credit: Cash
b. Debit: Cash; Credit: Office Supplies
c. Debit: Office Supplies; Credit: Accounts Payable
d. Debit: Accounts Payable; Credit: Office Supplies
Problem 9. Altoona Plumbing acquired Equipment by making a Cash down payment and issuing a note to finance the remaining balance. Which of the following entries properly records this transaction?
a. Debit: Equipment; Credit: Cash, Accounts Payable
b. Debit: Equipment; Credit: Cash, Notes Payable
c. Debit: Equipment; Credit: Cash
d. Debit: Equipment; Credit: Cash, Accounts Payable, Notes Payable
10. Altoona Plumbing made its monthly office rent payment. Which of the following entries properly records this transaction?
a. Debit: Cash; Credit: Rent Expense
b. Debit: Rent Expense; Credit: Cash
c. Debit: Rent Expense; Credit: Accounts Payable
d. Debit: Accounts Payable; Credit: Rent Expense