*Ak		

:THIS IS THE POSTTEST FOR BASIC ACCOUNTING. YOU WILL BE
>REQUIRED TO GET 9 OUT OF 10 QUESTIONS TO PASS. GOOD LUCK!

BWHICH OF THE FOLLOWING IS FOUND IN THE OWNER'S EQUITY SECTION?
A) ACCOUNT PAYABLE
B) MERCHANDISE INVENTORY
C) RETAINED EARNINGS
D) SALES
C
$YOU'RE ONE FOR ONE. KEEP IT UP.
*WRONG. YOU ARE 0 FOR 1. TRY THIS ONE.
>AN ASSET HAS A(N)   A) DEBIT BALANCE    B) CREDIT BALANCE
A
FANTASTIC!!
WRONG. TRY THIS ONE.
4THE ACCOUNT RETAINED EARNINGS WILL BE FOUND IN:
   A) ASSETS
   B) LIABILITIES
   C) OWNER'S EQUITY
C
VERY GOOD.
$YOU NEED HELP IN OWNER'S EQUITY.

8OWNER'S EQUITY SECTION IS MADE UP OF THREE TYPES OF
ACCOUNTS.
2   1) INVESTMENT BY THE OWNER--JONES, CAPITAL
:   2) PROFITS PUT INTO THE COMPANY--RETAINED EARNINGS
   3) STOCK IN THE COMPANY
      A) PREFERRED STOCK
      B) COMMON STOCK
      C) TREASURY STOCK
      D) PAID-IN-EXCESS
      E) PAID-IN-CAPITAL
       ETC.
PICK OUT THE ASSET.
 A) NOTES PAID
 B) MERCHANDISE INVENTORY
 C) ACCOUNTS PAYABLE
 D) KLEAN, CAPITAL
B
SUPER FINE JOB!!!
"SORRY BUT THAT IS NOT CORRECT.
(WHICH ACCOUNT HAS A CREDIT BALANCE?
A) CASH
B) NOTES PAYABLE
C) MERCHANDISE INVENTORY
D) AUTOMOBILE
B
EXCELLENTLY ACCOMPLISHED.
YOU NEED HELP IN BALANCES.
REMEMBER!!!
*  ASSETS ALWAYS HAVE A DEBIT BALANCE.
0  LIABILITIES ALWAYS HAVE A CREDIT BALANCE.
:  OWNER'S EQUITY ACCOUNTS ALWAYS HAVE CREDIT BALANCES.
"WHICH ACCOUNT IS A LIABILITY?
A) ACCOUNTS RECEIVABLE
0B) NOTES PAID OFF BY THE FIRST OF THE MONTH
C) NOTES PAYABLE
D) COMMON STOCK
C
SUPER!! DUPER!!!
&YOU MISSED THIS ONE. TRY THIS ONE.
	(THE ACCOUNT OFFICE EQUIPMENT IS A(N)
  A) OWNER'S EQUITY
  B) ASSET
  C) LIABILITY
B
*YOU'ER DOING A GREAT JOB. KEEP IT UP.
	6YOU ARE FORGETTING AN ASSET IS ANYTHING A BUSINESS
:CAN OWN. EXAMPLES: TRUCK, OFFICE FURNITURE, SUPPLIES,
ACCOUNTS RECEIVABLE, ETC.
6WHICH SIDE IS THE INCREASE SIDE OF JONES, CAPITAL?
(   A) DEBIT SIDE      B) CREDIT SIDE
B
:YOU'ER DOING FANTASTIC. YOU SEEM TO REALLY BE TUNED IN
THIS AREA.

.YOU'ER HAVING TROUBLE. LET'S TRY THIS ONE.
WHICH ONE IS A LIABILITY?
A) NOTES PAYABLE
B) CASH
C) LAND
D) RETAINED EARNINGS.
A
VERY GOOD. KEEP IT UP.
<A LIABILITY IS SOMETHING A COMPANY OWES TO SOMEONE ELSE
8IF THE WORD OR ACCOUNT TITLE IS FOLLOWED BY THE WORD
>"PAYABLE" THEN IT IS A LIABILITY.  NOW LET'S TRY THIS ONE.
PICK OUT THE ASSET.
A) CASH
B) COST OF GOODS SOLD
C) NOTES PAYABLE
D) COMMON STOCK
A
NICE GOING.
"WRONG GUESS. THE ANSWER IS A.
.TO INCREASE THE ACCOUNT LAND YOU HAVE TO:
2A) CREDIT THE ACCOUNT     B) DEBIT THE ACCOUNT
B
CORRECT!!
6TO INCREASE A DEBIT BALANCE YOU DEBIT THE ACCOUNT.
:LAND IS AN ASSET AND ALL ASSETS HAVE A DEBIT BALANCE.
4WHERE WILL I FIND THE ACCOUNT NOTES PAYABLE IN:
A) ASSETS
B) LIABILITY
C) OWNER'S EQUITY
B
ABSOLUTELY CORRECT
:THE CORRECT ANSWER IS B BECAUSE OF THE WORD "PAYABLE" 
"MAKES THE ACCOUNT A LIABILITY.
WHICH IS AN ASSET?
A) NOTES RECEIVABLE
B) CASH
C) MERCHANDISE INVENTORY
D) NONE OF THEM
E) ALL OF THEM
E
8I THOUGHT I COULD STUMP YOU ON THIS ONE.  VERY GOOD.
,ALL OF THEM ARE ASSETS. THE ANSWER IS E.
2WHICH ONE IS FOUND IN OWNER'S EQUITY SECTION?
A) RETAINED EARNINGS
B) PAID-IN-CAPITAL
C) COMMON STOCK
D)TREASURY STOCK
E)ALL OF THE ABOVE
F) NONE
E
&YOU ARE SOMETHING ELSE. GOOD JOB.
$THE ANSWER IS E) ALL THE ABOVE.
ACCOUNTS PAYBLE IS A(N)
2A) ASSET    B) LIABILITY    C) OWNER'S EQUITY
B
"GOOD WORK. YOU ARE FANTASTIC.
8B IS THE CORRECT ANSWER. THE WORD PAYABLE GIVES THE
 ANSWER AWAY AS A LIABILITY.
4WHICH SIDE DO YOU INCREASE THE ACCOUNT ACCOUNTS
RECEIVABLE/ JOHN SMITH?
$A) DEBIT SIDE    B) CREDIT SIDE
A
*CORRECT. YOU HAVE PASSED THIS SECTION.
6AN ASSET HAS A DEBIT BALANCE. TO INCREASE A DEBIT
"BALANCE YOU DEBIT THE ACCOUNT.
.YOU WILL FIND THE ACCOUNT COMMON STOCK IN:
2A) ASSETS   B) LIABILITIES   C) OWNER'S EQUITY
C
0CORRECT.  ONE MORE TO GO TO PASS. GOOD LUCK.
4IT WILL BE FOUND IN THE OWNER'S EQUITY SECTION.!

BM,14
E
6TO DECREASE THE ACCOUNT NOTES PAYBLE. YOU HAVE TO:
2A) DEBIT THE ACCOUNT     B) CREDIT THE ACCOUNT
A
.YOU NOW HAVE PASSED THIS SECTION ON BASIC
0ACCOUNTING.  GOOD LUCK IN THE NEXT SECTION.
*NOTES PAYABLE IS A LIABILITY ACCOUNT.
&LIABILITIES HAVE CREDIT BALANCES.
8TO DECREASE A CREDIT BALANCE YOU DEBIT THE ACCOUNT.
C
0CORRECT.  ONE MORE TO GO TO PASS. GOOD LUCK.
4IT WILL BE FOUND IN THE OWNER'S EQUITY SECTION.!

BM,14
E
6TO DECREASE THE ACCOUNT NOTES PAYBLE. YOU HAVE TO:
2A) DEBIT THE ACCOUNT     B) CREDIT THE ACCOUNT
A
.YOU NOW HAVE PASSED THIS SECTION ON BASIC
0ACCOUNTING.  GOOD LUCK IN THE NEXT SECTION