21. What the company owns or controls and expects to gain value from is defined as:

  • Equity
  • A Liability
  • An Asset

22. What the company owes to others is defined as:

  • Liabilities
  • Assets
  • Equity

23. The owner’s stake in the company is defined as:

  • Liabilities
  • Assets
  • Equity

24. A way of bookkeeping that tracks which accounts increase and which decrease for a given transaction is known as:

  • Multiple-entry
  • Double-entry
  • Single-entry

25. Which of the following best defines a credit as it’s used in double-entry accounting?

  • A decrease in assets/expenses and an increase in liabilities/owner’s equity and revenue.
  • An increase in liabilities/expenses and a decrease in assets/owner’s equity and revenue.
  • An increase in assets/owner’s equity and income and a decrease in liabilities/expenses.
  • An increase in assets/expenses and a decrease in liabilities/owner’s equity and revenue.

26. Which of the following best defines a debit as it’s used in double-entry accounting?

  • An increase in assets/expenses and a decrease in liabilities/owner’s equity and revenue.
  • An increase in liabilities/expenses and a decrease in assets/owner’s equity and revenue.
  • A decrease in assets/expenses and an increase in liabilities/owner’s equity and revenue.
  • An increase in assets/owner’s equity and income and a decrease in liabilities/expenses.

27. You purchased inventory from your vendor and paid cash. The accounts affected are the inventory account and the cash account. In your journal entry, which account would you debit?

  • Inventory account
  • Cash account

28. An owner invests $1000 in the company. This transaction impacted the checking account and the owner’s equity account. In your journal entry, which account do you credit?

  • Checking account
  • Owner’s equity account

Shuffle Q/A 3

29. A sales manager purchases office supplies with the company credit card. This transaction impacts the accounts payable and the office supplies accounts. In your journal entry, which account do you credit?

  • Office supplies account
  • Accounts payable

30. The company pays off the credit card bill. This transaction impacts the accounts payable and the cash accounts. In your journal entry, which account do you credit?

  • Cash account
  • Accounts payable

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