1. Payments of dividends to stockholders:
a.increase capital stock.
b.decrease capital stock.
c.increase retained income.
d.decrease retained income.
2. Which of the following is a group of accounts in that all normally have a debit balance?
a.Cash, Mortgage payable, and Inventory
b.Land, Cost of goods sold, and Paid-in capital
c.Accounts receivable, Salaries expense, and Dividends
d.Prepaid rent, Building, and Notes payable
3. When dividends are paid,
a.total assets remain the same.
b.stockholders' equity will increase.
c.total assets will increase.
d.total assets will decrease.
4. Revenue accounts are increased by credits:
a.always.
b.only when they have a debit balance.
c.only when they have a credit balance.
d.never.
5. The trial balance makes sure that:
a.the proper accounts are affected.
b.each account has the appropriate dollar amount balance.
c.the debits equal the credits in the journal.
d.the debits equal the credits in the ledger.
6. The following journal entry should be posted as
suppliesxxx
accounts payablexxx
a.a debit to accounts payable and a credit to supplies.
b.a debit to accounts payable and a debit to supplies.
c.a credit to accounts payable and a credit to supplies.
d.a credit to accounts payable and a debit to supplies.