Question 1

Which accounts are affected when the company pays salaries?

Accepted Answer

A)  Assets and Capital increase. 
B)  Liabilities and Capital increase. 
C)  Assets and Expenses increase. 
D)  None of the above are correct. 
A)  Assets and Capital increase. 
B)  Liabilities and Capital increase. 
C)  Assets and Expenses increase. 
D)  None of the above are correct.

Question 2

The claims of creditors against the assets of a business are

Accepted Answer

A)  expenses. 
B)  revenues. 
C)  liabilities. 
D)  assets. 
A)  expenses. 
B)  revenues. 
C)  liabilities. 
D)  assets.

Question 3

Which of the following transactions would cause an asset to increase and the owner's equity to increase?

Accepted Answer

A)  The owner invested cash in the business. 
B)  The business incurred an expense on credit. 
C)  The business bought supplies on account. 
D)  The owner withdrew cash from the business. 
A)  The owner invested cash in the business. 
B)  The business incurred an expense on credit. 
C)  The business bought supplies on account. 
D)  The owner withdrew cash from the business.

Question 4

The balance sheet contains

Accepted Answer

A)  liabilities, expenses and capital. 
B)  assets, liabilities and revenues. 
C)  expenses, assets and cash. 
D)  assets, liabilities and owner's equity. 
A)  liabilities, expenses and capital. 
B)  assets, liabilities and revenues. 
C)  expenses, assets and cash. 
D)  assets, liabilities and owner's equity.

Question 5

Expenses

Accepted Answer

A)  are costs the company incurs in carrying on operations. 
B)  are a subdivision of owner's equity. 
C)  record personal expenses not related to the business. 
D)  Both A and B are correct. 
A)  are costs the company incurs in carrying on operations. 
B)  are a subdivision of owner's equity. 
C)  record personal expenses not related to the business. 
D)  Both A and B are correct.

Question 6

List the 6 functions of accounting.

Accepted Answer

1. Analyzing
2. Reco

Question 7

If the liabilities owed by a business total $150,000, then the assets must also total $150,000.

Accepted Answer

A) True 
 B)False

Question 8

If the assets owned by a business total $75,000, owner's equity must also total $75,000.

Accepted Answer

A) True 
 B)False

Question 9

Stork Machining has total assets of $40,000. What are the total assets if new equipment is purchased for $10,000 cash?

Accepted Answer

A)  $50,000 
B)  $40,000 
C)  $55,000 
D)  $60,000 
A)  $50,000 
B)  $40,000 
C)  $55,000 
D)  $60,000

Question 10

Calculate the total Liabilities if the company has: Assets totaling $500 and Capital of $250.

Accepted Answer

The answer of Calculate the total Liabilities if the company...

Question 11

A disadvantage of a corporation is that shareholders are held personally liable for the corporation's debts.

Accepted Answer

A) True 
 B)False

Question 12

The income statement is a financial statement showing business results in terms of revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is TRUE?

Accepted Answer

A)  Owner's withdrawals decrease net income. 
B)  Net income causes liabilities to decrease. 
C)  Net losses cause liabilities to increase. 
D)  Owner's withdrawals decrease owner's equity. 
A)  Owner's withdrawals decrease net income. 
B)  Net income causes liabilities to decrease. 
C)  Net losses cause liabilities to increase. 
D)  Owner's withdrawals decrease owner's equity.

Question 14

An accounting report that shows the changes in capital during the accounting period is

Accepted Answer

A)  a balance sheet. 
B)  an income statement. 
C)  a statement of owner's equity. 
D)  All of these answers are correct. 
A)  a balance sheet. 
B)  an income statement. 
C)  a statement of owner's equity. 
D)  All of these answers are correct.

Question 15

Canada has not yet adopted the IFRS rules for accounting.

Accepted Answer

A) True 
 B)False

Question 16

The income statement is the first financial statement completed.

Accepted Answer

A) True 
 B)False

Question 17

Cash withdrawals by the owner decrease both equity and assets.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following transactions has no effect on owner's equity?

Accepted Answer

A)  Paying salaries expense 
B)  Equipment purchase 
C)  Billing for services rendered 
D)  A withdrawal 
A)  Paying salaries expense 
B)  Equipment purchase 
C)  Billing for services rendered 
D)  A withdrawal

Question 19

If a company's revenues are higher than its expenses, it will cause

Accepted Answer

A)  an increase in owner's equity. 
B)  a decrease in owner's equity. 
C)  an increase in assets. 
D)  no effect on owner's equity. 
A)  an increase in owner's equity. 
B)  a decrease in owner's equity. 
C)  an increase in assets. 
D)  no effect on owner's equity.

Question 20

The purpose of the accounting process is to provide financial information about

Accepted Answer

A)  sole proprietorships. 
B)  small businesses. 
C)  large corporations. 
D)  All of these answers are correct. 
A)  sole proprietorships. 
B)  small businesses. 
C)  large corporations. 
D)  All of these answers are correct.

Which accounts are affected when the company pays salaries?

The claims of creditors against the assets of a business are

Which of the following transactions would cause an asset to increase and the owner's equity to increase?

The balance sheet contains

Expenses

List the 6 functions of accounting.

If the liabilities owed by a business total $150,000, then the assets must also total $150,000.

If the assets owned by a business total $75,000, owner's equity must also total $75,000.

Stork Machining has total assets of $40,000. What are the total assets if new equipment is purchased for $10,000 cash?

Calculate the total Liabilities if the company has: Assets totaling $500 and Capital of $250.

A disadvantage of a corporation is that shareholders are held personally liable for the corporation's debts.

The income statement is a financial statement showing business results in terms of revenues and expenses.

Which of the following statements is TRUE?

An accounting report that shows the changes in capital during the accounting period is

Canada has not yet adopted the IFRS rules for accounting.

The income statement is the first financial statement completed.

Cash withdrawals by the owner decrease both equity and assets.

Which of the following transactions has no effect on owner's equity?

If a company's revenues are higher than its expenses, it will cause

The purpose of the accounting process is to provide financial information about

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

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Exam 1: Accounting Concepts and Procedures: an Introduction

Which accounts are affected when the company pays salaries?

The claims of creditors against the assets of a business are

Which of the following transactions would cause an asset to increase and the owner's equity to increase?

The balance sheet contains

Expenses

List the 6 functions of accounting.

If the liabilities owed by a business total $150,000, then the assets must also total $150,000.

If the assets owned by a business total $75,000, owner's equity must also total $75,000.

Stork Machining has total assets of $40,000. What are the total assets if new equipment is purchased for $10,000 cash?

Calculate the total Liabilities if the company has: Assets totaling $500 and Capital of $250.

A disadvantage of a corporation is that shareholders are held personally liable for the corporation's debts.

The income statement is a financial statement showing business results in terms of revenues and expenses.

Which of the following statements is TRUE?

An accounting report that shows the changes in capital during the accounting period is

Canada has not yet adopted the IFRS rules for accounting.

The income statement is the first financial statement completed.

Cash withdrawals by the owner decrease both equity and assets.

Which of the following transactions has no effect on owner's equity?

If a company's revenues are higher than its expenses, it will cause

The purpose of the accounting process is to provide financial information about

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters