Utility Expense.
A credit is used to record an increase in all of the following accounts except
A. Utility Expense.
B. Share Capital.
C. Accounts Payable.
D. Service Revenue.
2. Generally, all of the following financial statements can be prepared with information
from the
A. Income Statement.
B. Statement of Cash Flows.
C. Statement of
D.
3. The Dividends account is increased with a debit because dividends
A. are an expense.
B. are declared an asset.
C. reduce liabilities.
D.result in a decrease in equity, so debiting Dividends would have the effect of
decreasing Equity.
4. When a company pays cash for a truck, what is the effect on the
for that company?
A. Increase assets and increase liabilities.
B. Decrease assets and decrease liabilities.
C. Increase assets and increase equity.
D. No net change.
5. Gordon Company was recently formed with a $5,000 investment in the company by
shareholders. The company then borrowed $2,000 from a bank, purchased $1,000 of
supplies on account, and also purchased $5,000 of equipment by paying $2,000 in cash
and signing a note for the balance.
Based on these transactions, the company's total
assets are
A. S7.000.
B. $9.000.
C. $11.000.
D. $12.000.
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