1. Which of the following is not an asset:
a. Accounts Payable
b. Furnishing and Equipment
c. Supplies
d. Cash
2. Amy Co. acquired $500 worth of supplies on credit. Which of the following journal entries would be recorded?
a. Debit supplies, credit cash
b. Debit cash, credit supplies
c. Debit supplies, credit accounts payable
d. Debit accounts payable, credit supplies payable
3. Baker Company earned $10,000 revenue for services provided. Which of the following is correct?
a. Baker would credit Revenue.
b. Baker would debit Revenue.
c. Baker must first collect the revenue before recognizing it.
d. Baker would credit an asset.
4. Candy Company collected $5,000 from a customer on account. What journal entry will Candy Company record?
a. Debit cash, credit accounts receivable
b. Debit cash, credit revenue
c. Debit accounts receivable, credit revenue
d. Debit accounts receivable, credit cash
e. None of the above
5. Ernie Corporation capitalized a $20,000 automobile. Which of the following is mostly likely true?
a. Ernie recorded a liability for $20,000.
b. Ernie recorded an asset for $20,000.
c. Ernie recorded an expense for $20,000.
d. Ernie recorded revenue for $20,000.