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111 the reason that revenue is recorded by a credit entry to a revenue account is a 4295447

 

 

111.The reason that revenue is recorded by a credit entry to a revenue account is: 
 
 

A.That revenue always involves a debit to the Cash account.

 

B.Explained by the realization principle.

 

C.Explained by the matching principle.

 

D.That revenue increases owners' equity.

 

 

 

 

112.Revenues increase owners' equity because: 
 
 

A.Revenues increase net income which increases retained earnings.

 

B.Revenues are recorded by a debit.

 

C.Of the matching principle.

 

D.The conservatism principle requires revenues be recognized with an increase to owners' equity.

 

 

 

 

113.The reason that both expenses and dividends are recorded by debit entries is that: 
 
 

A.All dividend and expense transactions involve offsetting credit entries to the Cash account.

 

B.Both expenses and dividends are offset against revenues in the income statement.

 

C.Both expenses and dividends reduce owners' equity.

 

D.The statement is untrue-expenses are recorded by debits, but dividends are recorded by credits to the owners' equity account.

 

 

 

 

114.A journal entry which records revenue must include: 
 
 

A.A debit to Cash.

 

B.A credit to a revenue account.

 

C.A credit to the owners' equity account.

 

D.A debit to the owners' equity account.

 

 

 

 

115.A journal entry to record revenue could include each of the following, except
 
 

A.A credit to a revenue account.

 

B.A credit to the Capital Stock account.

 

C.A debit to Cash.

 

D.A debit to Accounts Receivable.

 

 

 

 

116.A journal entry to recognize an expense must include: 
 
 

A.A credit to Accounts Payable.

 

B.A credit to an expense account.

 

C.A credit to Cash.

 

D.A debit to an expense account.

 

 

 

 

117.A journal entry to recognize an expense could include each of the following, except
 
 

A.A debit to an expense account.

 

B.A credit to Accounts Payable.

 

C.A debit to a liability account.

 

D.A credit to Cash.

 

 

 

 

118.The agreement of the debit and credit totals of the trial balance gives assurance that: 
 
 

A.All transactions were posted correctly.

 

B.No transactions were omitted.

 

C.The number of accounts with debit balances equals the number of accounts with credit balances.

 

D.The total debits equal the total credits.

 

 

 

 

119.If the trial balance has a higher debit balance than credit balance, it signifies: 
 
 

A.Assets are more than liabilities.

 

B.A profit.

 

C.A loss.

 

D.An error has been made.

 

 

 

 

120.If the trial balance has a smaller debit balance than credit balance, it signifies: 
 
 

A.Assets are more than liabilities.

 

B.A profit.

 

C.A loss.

 

D.An error has been made.

 

 

 

 

 

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