Question 1

Which of the following would result if a business purchased Equipment paying a 50% down payment in cash?

Accepted Answer

A)  Equipment would increase and Cash would decrease. 
B)  Accounts Payable would increase. 
C)  Since the equipment has not been paid in full, there is nothing to record. 
D)  Both A and B are correct. 
A)  Equipment would increase and Cash would decrease. 
B)  Accounts Payable would increase. 
C)  Since the equipment has not been paid in full, there is nothing to record. 
D)  Both A and B are correct.

Question 2

Ryan withdrew cash from the business to pay his personal cell phone bill. The expanded accounting equation changes include

Accepted Answer

A)  increase in both Cash and Withdrawal. 
B)  decrease in both Cash and Withdrawal. 
C)  decrease in Cash and increase in Withdrawal. 
D)  increase in Cash and decrease in Withdrawal. 
A)  increase in both Cash and Withdrawal. 
B)  decrease in both Cash and Withdrawal. 
C)  decrease in Cash and increase in Withdrawal. 
D)  increase in Cash and decrease in Withdrawal.

Question 3

The advantages of a limited company (corporation) do NOT include

Accepted Answer

A)  limited personal risk. 
B)  can continue indefinitely. 
C)  business decisions made by career administrators. 
D)  easy to set up. 
A)  limited personal risk. 
B)  can continue indefinitely. 
C)  business decisions made by career administrators. 
D)  easy to set up.

Question 4

Cash is the same thing as Capital.

Accepted Answer

A) True 
 B)False

Question 5

Sunrise Company has total assets of $25,000. If $2,000 cash is used to purchase a new computer, the total assets would be

Accepted Answer

A)  $25,000. 
B)  $23,000. 
C)  $27,000. 
D)  $22,000. 
A)  $25,000. 
B)  $23,000. 
C)  $27,000. 
D)  $22,000.

Question 6

Which of the following items is NOT listed on the balance sheet?

Accepted Answer

A)  Accounts Payable 
B)  Accounts Receivable 
C)  Revenue 
D)  Equipment 
A)  Accounts Payable 
B)  Accounts Receivable 
C)  Revenue 
D)  Equipment

Question 7

Bob purchased a new computer for the company on account. The transaction will

Accepted Answer

A)  increase Computer; increase Capital. 
B)  decrease Cash; increase Accounts Payable. 
C)  decrease Cash; increase Computer. 
D)  increase Computer; increase Accounts Payable. 
A)  increase Computer; increase Capital. 
B)  decrease Cash; increase Accounts Payable. 
C)  decrease Cash; increase Computer. 
D)  increase Computer; increase Accounts Payable.

Question 8

On a Balance Sheet, both the total for Assets and the total of Liabilities plus Owner's Equity are shown with a dollar sign ($).

Accepted Answer

A) True 
 B)False

Question 9

The financial statement that shows business results in terms of revenue and expenses is

Accepted Answer

A)  an income statement. 
B)  a balance sheet. 
C)  a statement of owner's equity. 
D)  the expanded accounting equation. 
A)  an income statement. 
B)  a balance sheet. 
C)  a statement of owner's equity. 
D)  the expanded accounting equation.

Question 10

Explain the purpose of the following:
a. Income Statement
b. Statement of Owner's Equity
c. Balance Sheet

Accepted Answer

a. The income statement is an accounting

Question 11

When expenses are greater than revenue, net income is the result.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  The business provided services to a cash customer. 
B)  The business bought supplies for cash. 
C)  The owner withdrew cash from the business. 
D)  The business bought supplies on account. 
A)  The business provided services to a cash customer. 
B)  The business bought supplies for cash. 
C)  The owner withdrew cash from the business. 
D)  The business bought supplies on account.

Which of the following would result if a business purchased Equipment paying a 50% down payment in cash?

Ryan withdrew cash from the business to pay his personal cell phone bill. The expanded accounting equation changes include

The advantages of a limited company (corporation) do NOT include

Cash is the same thing as Capital.

Sunrise Company has total assets of $25,000. If $2,000 cash is used to purchase a new computer, the total assets would be

Which of the following items is NOT listed on the balance sheet?

Bob purchased a new computer for the company on account. The transaction will

On a Balance Sheet, both the total for Assets and the total of Liabilities plus Owner's Equity are shown with a dollar sign ($).

The financial statement that shows business results in terms of revenue and expenses is

Explain the purpose of the following: a. Income Statement b. Statement of Owner's Equity c. Balance Sheet

When expenses are greater than revenue, net income is the result.

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

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

Exam 1: Accounting Concepts and Procedures: an Introduction

Which of the following would result if a business purchased Equipment paying a 50% down payment in cash?

Ryan withdrew cash from the business to pay his personal cell phone bill. The expanded accounting equation changes include

The advantages of a limited company (corporation) do NOT include

Cash is the same thing as Capital.

Sunrise Company has total assets of $25,000. If $2,000 cash is used to purchase a new computer, the total assets would be

Which of the following items is NOT listed on the balance sheet?

Bob purchased a new computer for the company on account. The transaction will

On a Balance Sheet, both the total for Assets and the total of Liabilities plus Owner's Equity are shown with a dollar sign ($).

The financial statement that shows business results in terms of revenue and expenses is

Explain the purpose of the following: a. Income Statement b. Statement of Owner's Equity c. Balance Sheet

When expenses are greater than revenue, net income is the result.

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

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