1. Blackson Incorporated signed a 3 year lease for the building that Blackson occupies and paid the rent for the first six months in advance. The account that should be debited is
a. Prepaid expenses
b. Cash
c. Building
d. Accounts payable
e. None of the above
2. If merchandise is returned to the company and the customer receives cash, the company debits an owner’s account and
a. Credits a liability account
b. Debits a liability account
c. Debits an asset account
d. None of the above
3. Adjusting entries reflect
a. External transactions
b. Internal transactions
c. Neither a or b
4. Asset accounts typically have a
a. Left hand side balance
b. Right hand side balance
c. Neither a or b
d. Decrease in short term debt
e. None of the above
5. Which of the following increases cash
a. Issuance of long term debt
b. Acquisition of property, plant, and equipment
c. Payment of dividends
d. Decrease in short term debt
e. None of the above