1 ) Comapny purchases a three-year insurance policy for $3000.00. At the end of the first year, Blue Talon adjusts insurance expense by crediting
A. An asset account,
B. a retained earnings account,
C. a liability account,
D. Both B and C
E. none of the above
2) Whitestone Company collected $10,000 on a credit sale. The left-hand side of the entry would be a debit to
A. Accounts Receivable
B. Accounts payable
C. Cash
D. Owners' equity
E. None of the above
3) Yellowstone Incorporated paid salaries of $5000. The debit entry is to
A. Retained earnings
B. Cash
C. Accounts payable
D. Accounts Receivable
E. None of the above
4) Silverstone Incorporated purchases a two-year insurance policy for $8000 cash. Silverstone debits
A. An asset account
B. A liability account
C. And owners' equity account
D. Both B and C
E. None of the above
5) Credit entries to the cash account increase the account, similar to your bank statement.
TRUE or FALSE