66. Which of the following accounts is increased with a credit? A. Office Supplies B. Unearned Revenue C. Land D. Prepaid Insurance 67. Which pair of accounts follows the rules of debit and credit in the same manner? A. Service Revenue and Equipment B. Land and Withdrawals C. Notes Payable and Buildings D. Wages Expense and Service Revenue 68. Which pair of accounts follows the rules of debit and credit in the opposite manner? A. Prepaid Insurance and Withdrawals B. Advertising Expense and Land C. Withdrawals and Service Revenue D. Interest Payable and Owner’s Capital 69. The double-entry system A. requires that each transaction be recorded with at least one debit and one credit. B. requires that the total amount of the debits must always equal the total amount of the credits. C. is based on the principle of duality. D. All of these choices. 70. Which of the following accounts is not shown on the Statement of Owner’s Equity? A. Owner’s Capital B. Revenues C. Expenses D. Withdrawals 71. Which of the following is the final step in the accounting cycle? A. Prepare financial statements. B. Close the accounts. C. Prepare and adjusted trial balance. D. Post the journal entries to the ledger. 72. Which of the following is the first step in the accounting cycle? A. Prepare financial statements. B. Analyzebusiness transactions from source documents. C. Prepare and adjusted trial balance. D. Post the journal entries to the ledger. 73. The withdrawal of cash by the owner will A. decrease net income. B. increase liabilities. C. not affect total assets. D. decrease owner’s equity. 74. A company records a transaction in which six months’ rent is paid in advance. Which of the following journal entries records the transaction? A. Prepaid Rent – Debit; Cash – Credit B. Rent Receivable – Debit; Cash – Credit C. Rent Revenue – Debit; Cash – Credit D. Rent Expense– Debit; Cash – Credit. 75. Receiving cash from a customer for settlement of an Accounts Receivable will A. decrease Owner’s Equity. B. increase net income. C. increase total assets. D. not affect total assets.
