Chapter Three Test

 

Question #1

Adrian Corp. has just bought merchandise (an asset) for sale and paid cash.  Which  of the following entries in the accounting books would it do? (select two choices)

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It would debit the merchandise or inventory account

It would credit the merchandise or inventory account.

It would debit cash.

It would credit cash.

 

Question #2

Orion Corp. has bought a machine from Ryan Corp. for $6 million on credit.  It now creates a check to pay for the amount it owes Ryan Corp. on credit. Which two journal entries would it make?

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It would debit the accounts payable  account

It would credit the accounts payable account.

It would debit cash.

It would credit cash.

 

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