1. Which of the following reduces Net Income? (check all that apply)
- Expences
- Stockholder's Equity
- Revenues
- Dividends
- Liabilities
2. Which of the following accounts would be increased with a Debit? (check all that apply)
- Land
- Cash
- Prepaid Insurance
- Accounts Payable
- Advertising Expense
3. Which of this journal entries represent paying cash to buy an asset? (check all that apply)
- Dr. Cash 300
Cr. Inventory 300
- Dr. Cash 2000
Cr. Common Stock 2000
- Dr. Truck 5000
Cr. Cash 5000
- Dr. Prepaid Insurance 500
Cr. Cash 500
- Dr. Advances from Customers 50
Cr. Cash 50
4. Which journal entry reflects the following transaction?:
BOC sold 10,000 shares of $1 par value stock to investors for $5 per share.
- Dr. Cash 50,000
Cr. Common Stock 50,000
- Dr. Cash 50,000
Cr. Common Stock 40,000
Cr. Additional Paid-in Capital 10,000
- Dr. Common Stock 10,000
Dr. Additional Paid-in Capital 40,000
Cr. Cash 50,000
- Dr. Cash 50,000
Cr. Common Stock 10,000
Cr. Additional Paid-in Capital 40,000
- Dr. Cash 10,000
Cr. Common Stock 10,000