41) The journal entry to record a withdrawal by the owner would most commonly include:

A) a debit to Wage Expense and a credit to Cash.

B) a debit to Capital and a credit to Cash.

C) a debit to Withdrawals and a credit to Cash.

D) a debit to Cash and a credit to Wage Expense.

 

42) The journal entry to record an exchange of assets would include:

A) a debit to Cash and a credit to Fees Earned.

B) a debit to Supplies and a credit to Accounts Payable.

C) a debit to Cash and a credit to Accounts Receivable.

D) a debit to Fees Earned and a credit to Accounts Receivable.

 

43) The general journal entry to record the purchase of an asset on account would include:

A) a debit to Accounts Receivable and a credit to Fees Earned.

B) a debit to Equipment and a credit to Accounts Payable.

C) a debit to Accounts Payable and a credit to Equipment.

D) a debit to Supplies and a credit to Cash.

44) The general journal entry to record a payment to a creditor would most commonly include:

A) a debit to Accounts Payable and a credit to Cash.

B) a debit to Capital and a credit to Cash.

C) a debit to Supplies and a credit to Cash.

D) a debit to Cash and a credit to Accounts Payable.

 

45) The general journal entry to record the earning of revenue would most commonly include:

A) a debit to Accounts Receivable and a credit to Capital.

B) a debit to Cash and a credit to Capital.

C) a debit to Fees Earned and a credit to Cash.

D) a debit to Accounts Receivable and a credit to Fees Earned.

 

46) Which of the following statements is false regarding a proper journal entry?

A) Debits are always listed first in the entry.

B) Credits are always indented.

C) Skip a line between transactions.

D) Always list the assets first.

 

47) To find an explanation for a transaction, look in the:

A) ledger.

B) balance sheet.

C) journal.

D) trial balance.

48) If Cash has been debited, it is likely that:

A) the owner made an investment.

B) a charge customer made a payment.

C) the business borrowed cash from the bank.

D) All of these are possible.

 

49) If Prepaid Rent has been debited, it is likely that:

A) the rent was paid for three months in advance.

B) a bill for the past month’s rent was received.

C) this month’s rent was paid.

D) All of these are possible.

 

50) If Rent Expense has been debited, it is likely that:

A) the rent was paid for three months in advance.

B) a copy of the lease was received.

C) this month’s rent was paid.

D) All of these are possible.

 

 

 



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