NOCTI Review 2

In accounting, use a spreadsheet to

• compose a professional email

• communicate with another network

• input data into database software

• process and manage data

Assets, withdrawals, and _____ have normal debit balances.

• liabilities

• expenses

• revenues

• owner's equity

Susan opened a business and invested $5,000 in cash and a computer worth $2,500. These investments will increase

• assets by $5,000

• assets by $7,500

• liabilities by $5,000

• liabilities by $7,500

The appropriate entry for receiving money from a customer is to

• decrease revenue

• decrease sales

• increase cash

• increase expenses

The journal entry to record cash investment by the owner is to debit Cash and credit _____________

• Accounts Receivable

• Drawing

• Capital

• Expense

Jason invested $15,000 cash to start his business. How does this transaction impact the basic accounting equation?

• there is no impact to the accounting equation

• increase owner's equity by $15,000

• increase liabilities by $15,000

• increase Accounts Payable by $15,000

Journalizing is a process in which

• source documents are analyzed for debit and credit entries

• debits and credits are copied to the general ledger

• debits and credits are carried to a trial balance

An endorsed check must have an authorized ______ on the back of the check.

• embossment

• deposit sit

• signature

A purchase of a computer with cash

• increases a liability

• is a shift in assets

• decreases expenses

The tax that is paid by employers to provide temporary relief for individuals who are out of work is called ______________ tax.

• income

• unemployment

• sales

• FICA