21. The total debits for the Trial Balance equal:

  • $33,000
  • $16,500
  • $18,610
  • $12,700

22. Lou’s total operating expenses for the month of July are ______.

(Format your answer as $x,xxx)


23. Lou’s net income on his income statement is _______.

(Format your answer as $x,xxx)


24. What was Lou's Accounts Receivable balance for the month of July?

(Format your answer as $x,xxx)


25. Which accounting assumption allows bookkeepers to break a company’s financial life into smaller chunks of time?

  • Entity Assumption
  • Going Concern Assumption
  • The Periodicity Assumption
  • Accrual Basis Assumption

26. Caren Cosmos is the world's most popular soft rock folk singer. She sold t-shirts online last year and made $7,000. The money from these sales went directly into her personal banking account which she used for her personal needs. Which key accounting assumption did Caren ignore?

  • Accrual Basis Assumption
  • Going Concern Assumption
  • Periodicity Assumption
  • Entity Assumption

27. Which expense provided by Lou did you not include in the journal?

  • On July 7, Lou rented a piece of commercial equipment from Home Depot for $1,000. He paid for it using his credit card.
  • July 24, Lou hired a subcontractor to help with a job. He paid the subcontractor with check #0002 for $650.00
  • On July 17, Lou purchased a new bicycle for his son for $275.
  • On July 4, Lou put an ad in the Penny Saver for his business. He paid $450 with check #0001.

28. An accounting method in which revenues are reported when they are earned and expenses are reported when they are incurred is called:

  • Cash-Basis Accounting
  • Accrual Accounting
  • Hybrid Accounting

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