1. What would be the effect on accounts if the business purchased office supplies for cash?
a.An asset would be debited and an asset credited.
b.An asset would be debited and revenue credited.
c.An asset would be debited and an expense credited.
d.Capital would be debited and revenue credited.
2. Which of the following is not a financial statement?
a.Balance sheet
b.Income statement
c.Statement of owner's equity
d.Trial balance
3.Which of the following errors would cause the trial balance to be out of balance?
a.An entry is posted twice.
b.A debit is entered as $100 and the credit is entered at $1,000.
c.An entry is not posted at all.
d.None of these answers are correct.
4. Office Supplies had a normal starting balance of $75. There were debit postings of $90 and credit postings of $70 during the month. The ending balance is:
Answer
a.$95 debit.
b.$55 debit.
c.$55 credit.
d.$95 credit.