Question 1

The three elements that make up a balance sheet are assets,liabilities and revenues.

Accepted Answer

A) True 
 B)False

Question 2

A purchase of a vehicle for cash would have what effect on the accounting equation?

Accepted Answer

A) Total asset amount remains the same. 
B) Total liabilities are overstated. 
C) Total owner's equity is overstated. 
D) Both A and B are correct. 
A) Total asset amount remains the same. 
B) Total liabilities are overstated. 
C) Total owner's equity is overstated. 
D) Both A and B are correct.

Question 3

Discuss the advantages and disadvantages of sole proprietorships,partnerships and corporations.

Accepted Answer

A sole proprietorship is a business that

Question 4

Revenue,expenses,and withdrawals are subdivisions of:

Accepted Answer

A) assets. 
B) liabilities. 
C) owner's equity. 
D) All of these answers are correct. 
A) assets. 
B) liabilities. 
C) owner's equity. 
D) All of these answers are correct.

Question 5

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 statement of cash flows. 
A) an income statement. 
B) a balance sheet. 
C) a statement of owner's equity. 
D) the statement of cash flows.

Question 6

Tracey's Photography completes the following transactions:

Accepted Answer

The answer of Tracey's Photography completes the following transactions:
 ...

Question 7

Generally Accepted Accounting Principles are the procedures and guidelines that must be followed during the accounting process.

Accepted Answer

A) True 
 B)False

Question 8

Cash investments by the owner increases both liabilities and assets.

Accepted Answer

A) True 
 B)False

Question 9

Expenses are recorded as costs of doing business whether cash was paid or not.

Accepted Answer

A) True 
 B)False

Question 10

Katie's Wedding Planning Service completed the following transactions:
a.Billed clients for service,$1,250.
b.Completed work for clients $200 on account.
c.Received a bill for utilities to be paid later,$120.
d.Collected $700 cash for services performed.
e.Paid the amount due for utilities.
f.Withdrew $500 cash for personal use.
Required: Record the above transactions in the expanded accounting equation.Note that the items have beginning balances.

Accepted Answer

The answer of Katie's Wedding Planning Service completed the following...

Question 11

An expense should be recorded when:

Accepted Answer

A) the bill is paid. 
B) the expense is incurred. 
C) a bill is received in the mail. 
D) None of the above is correct. 
A) the bill is paid. 
B) the expense is incurred. 
C) a bill is received in the mail. 
D) None of the above is correct.

Question 12

Determine the beginning capital balance of a business having an ending capital balance of $10,800,no additional investments,withdrawals of $2,600,and a net income of $4,700.
$ ________

Accepted Answer

$8,700 [$1

Question 13

If total liabilities are $2,000 and total assets are $10,000,owner's equity must be:

Accepted Answer

A) $8,000. 
B) $6,000. 
C) $10,000. 
D) $12,000. 
A) $8,000. 
B) $6,000. 
C) $10,000. 
D) $12,000.

Question 14

The statement of owner's equity shows revenue,liabilities and capital..

Accepted Answer

A) True 
 B)False

Question 15

Which is an advantage of a sole proprietorship form of business?

Accepted Answer

A) There is limited personal risk. 
B) The business can continue indefinitely. 
C) The owner makes all the decisions. 
D) None of these answers is correct. 
A) There is limited personal risk. 
B) The business can continue indefinitely. 
C) The owner makes all the decisions. 
D) None of these answers is correct.

Question 16

Bob purchased a new computer for the company for cash.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 17

When expenses are less than revenue,net loss is the result.

Accepted Answer

A) True 
 B)False

Question 18

The Owner's Equity of Logan's Company is equal to one-half of the total assets.Liabilities equal $40,000.What is the amount of Owner's Equity?

Accepted Answer

A) $20,000 
B) $40,000 
C) $30,000 
D) None of these answers is correct. 
A) $20,000 
B) $40,000 
C) $30,000 
D) None of these answers is correct.

Question 19

If expenses are greater than revenue,a net income is incurred.

Accepted Answer

A) True 
 B)False

Question 20

Record the following transactions in the basic accounting equation:

Accepted Answer

The answer of Record the following transactions in the basic...

Exam 1: Accounting Concepts and Procedures

The three elements that make up a balance sheet are assets,liabilities and revenues.

A purchase of a vehicle for cash would have what effect on the accounting equation?

Discuss the advantages and disadvantages of sole proprietorships,partnerships and corporations.

Revenue,expenses,and withdrawals are subdivisions of:

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

Tracey's Photography completes the following transactions:

Generally Accepted Accounting Principles are the procedures and guidelines that must be followed during the accounting process.

Cash investments by the owner increases both liabilities and assets.

Expenses are recorded as costs of doing business whether cash was paid or not.

An expense should be recorded when:

Determine the beginning capital balance of a business having an ending capital balance of $10,800,no additional investments,withdrawals of $2,600,and a net income of $4,700. $ ________

If total liabilities are $2,000 and total assets are $10,000,owner's equity must be:

The statement of owner's equity shows revenue,liabilities and capital..

Which is an advantage of a sole proprietorship form of business?

Bob purchased a new computer for the company for cash.The transaction will:

When expenses are less than revenue,net loss is the result.

The Owner's Equity of Logan's Company is equal to one-half of the total assets.Liabilities equal $40,000.What is the amount of Owner's Equity?

If expenses are greater than revenue,a net income is incurred.

Record the following transactions in the basic accounting equation:

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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