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7- A small neighborhood barber shop that is operated by its owner would likely be organized as a
a- Partnership
b- Proprietorship
c- Corporation
d- Joint venture
8- If services are rendered for cash, then
a- Assets will increase
b- Liabilities will decrease
c- Stockholders equity will decrease
d- Liabilities will increase.
9- Revenue generally
a- Increases assets and decreases stockholders equity
b- Leaves total assets unchanged
c- Increases assets and liabilities
d- Increases assets and stockholders equity.
10- revenue account
a- Has a normal balance of a debit.
b- Is increased by credits.
c- Is increased by debits.
d- Is decreased by credits.
11- Which accounts normally have debit balances?
a- Assets, liabilities and dividends.
b- Assets, expenses, and revenues.
c- Assets, expenses and retained earnings.
d- Assets, expenses, and dividends.
12- In recording an accounting transaction in a double-entry system
a- The number of debit accounts must equal the number of credit accounts.
b- There must always be entries made on both sides of the accounting equation.
c- There must only be two accounts affected by any transaction.
d- The amount of the debits must equal the amount of the credits.
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