Peregrine Exam: Accounting Review Quiz
1. Accounts Receivable is a(n) ________ account and has a normal ________
balance.
Options:
- Liability; debit
- Asset; debit
- Liability; credit
- Asset; credit - CORRECT ANSWER-- Asset; debit
Prepaid Rent is a(n) ________ account and has a normal ________ balance.
Options:
- Liability; debit
- Asset; debit
- Liability; credit
- Asset; credit - CORRECT ANSWER-- Asset; debit
A business purchases equipment for $8,000 cash. Which of the following
accounts is credited?
Options:
- Prepaid Equipment
- Common Stock
- Accounts Payable
- Cash - CORRECT ANSWER-- Cash
Adjusting journal entries includes the use of cash?
Options:
- True
- False - CORRECT ANSWER-- False
Which of the following inventory systems would generate the highest cost of
goods sold and lowest ending inventory?
1. Accounts Receivable is a(n) ________ account and has a normal ________
balance.
Options:
- Liability; debit
- Asset; debit
- Liability; credit
- Asset; credit - CORRECT ANSWER-- Asset; debit
Prepaid Rent is a(n) ________ account and has a normal ________ balance.
Options:
- Liability; debit
- Asset; debit
- Liability; credit
- Asset; credit - CORRECT ANSWER-- Asset; debit
A business purchases equipment for $8,000 cash. Which of the following
accounts is credited?
Options:
- Prepaid Equipment
- Common Stock
- Accounts Payable
- Cash - CORRECT ANSWER-- Cash
Adjusting journal entries includes the use of cash?
Options:
- True
- False - CORRECT ANSWER-- False
Which of the following inventory systems would generate the highest cost of
goods sold and lowest ending inventory?
