Question 1

The payment of accounts payable would:

Accepted Answer

A) increase both assets and liabilities. 
B) increase assets and decrease liabilities. 
C) decrease both assets and liabilities. 
D) decrease assets and increase liabilities. 
A) increase both assets and liabilities. 
B) increase assets and decrease liabilities. 
C) decrease both assets and liabilities. 
D) decrease assets and increase liabilities.

Question 2

Calculate the total Liabilities if the company has: Assets totaling $800 and Capital of $450.
$ ________

Accepted Answer

($350 = $8

Question 3

Katie's Vegetarian Restaurant,with total assets of $100,000,borrows $20,000 from the bank.Which of the following is a true statement upon borrowing the money?

Accepted Answer

A) Total assets are now $120,000. 
B) Total assets are now $80,000. 
C) Total assets are now $30,000. 
D) Total assets are now $75,000. 
A) Total assets are now $120,000. 
B) Total assets are now $80,000. 
C) Total assets are now $30,000. 
D) Total assets are now $75,000.

Question 4

Carrie billed her legal clients $8,000 for legal work completed during the month.This transaction will:

Accepted Answer

A) cause a $8,000 increase in revenues and liabilities. 
B) cause a $8,000 increase in revenues and a decrease in liabilities. 
C) cause a $8,000 increase in assets and revenues. 
D) not be recorded until the cash is collected. 
A) cause a $8,000 increase in revenues and liabilities. 
B) cause a $8,000 increase in revenues and a decrease in liabilities. 
C) cause a $8,000 increase in assets and revenues. 
D) not be recorded until the cash is collected.

Question 5

The purchase of supplies for cash would affect which account category?

Accepted Answer

A) Assets 
B) Liabilities 
C) Capital 
D) Expense 
A) Assets 
B) Liabilities 
C) Capital 
D) Expense

Question 6

How does the purchase of supplies on account affect the accounting equation?

Accepted Answer

A) Assets increase;liabilities decrease 
B) Assets increase;owner's equity increases 
C) Assets increase;liabilities increase 
D) Liabilities increase;owner's equity decreases 
A) Assets increase;liabilities decrease 
B) Assets increase;owner's equity increases 
C) Assets increase;liabilities increase 
D) Liabilities increase;owner's equity decreases

Question 7

Which of the following would result if a business purchased Equipment with a 40% down payment and the rest on account?

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 8

Which of the following would result if the business purchased supplies for cash?

Accepted Answer

A) Supplies would increase and Cash would decrease. 
B) Supplies would increase and Capital would increase. 
C) Supplies would increase and Accounts Payable would increase. 
D) The purchase of supplies is not a business transaction. 
A) Supplies would increase and Cash would decrease. 
B) Supplies would increase and Capital would increase. 
C) Supplies would increase and Accounts Payable would increase. 
D) The purchase of supplies is not a business transaction.

Question 9

If the assets owned by a business total $70,000 and liabilities total $30,000,then owner's equity totals $100,000.

Accepted Answer

A) True 
 B)False

Question 10

Total liabilities are included in the statement of owner's equity.

Accepted Answer

A) True 
 B)False

Question 11

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 12

If beginning capital was $120,000,ending capital is $90,000,and the owner's withdrawals were $15,000,the amount of net income or net loss was:

Accepted Answer

A) net income of $5,000. 
B) net income of $15,000. 
C) net loss of $15,000. 
D) net loss of $5,000. 
A) net income of $5,000. 
B) net income of $15,000. 
C) net loss of $15,000. 
D) net loss of $5,000.

Question 13

Which accounts are affected when the company provides services to a cash customer?

Accepted Answer

A) Assets and Capital 
B) Liabilities and revenue 
C) Assets and Revenue 
D) None of the above is correct. 
A) Assets and Capital 
B) Liabilities and revenue 
C) Assets and Revenue 
D) None of the above is correct.

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

The increase or decrease in the owner's equity is reported on the:

Accepted Answer

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

Question 16

Which accounts are affected when the owner withdraws cash from the business?

Accepted Answer

A) Assets and Withdrawals 
B) Liabilities and Capital 
C) Assets and Liabilities 
D) None of the above is correct. 
A) Assets and Withdrawals 
B) Liabilities and Capital 
C) Assets and Liabilities 
D) None of the above is correct.

Question 17

If the assets owned by a business total $50,000,owner's equity must also total $50,000.

Accepted Answer

A) True 
 B)False

Question 18

In a shift of assets,the composition of the assets changes but total assets do not change.

Accepted Answer

A) True 
 B)False

Question 19

Revenue is the same thing as Capital.

Accepted Answer

A) True 
 B)False

Question 20

Bonnie's Baskets purchases $2,000 worth of office equipment on account.This causes:

Accepted Answer

A) Cash and Capital to decrease. 
B) Office Equipment and Accounts Payable to increase. 
C) Office Equipment to decrease and Accounts Payable to increase. 
D) Accounts Payable to increase and Capital to decrease. 
A) Cash and Capital to decrease. 
B) Office Equipment and Accounts Payable to increase. 
C) Office Equipment to decrease and Accounts Payable to increase. 
D) Accounts Payable to increase and Capital to decrease.

Exam 1: Accounting Concepts and Procedures

The payment of accounts payable would:

Calculate the total Liabilities if the company has: Assets totaling $800 and Capital of $450. $ ________

Katie's Vegetarian Restaurant,with total assets of $100,000,borrows $20,000 from the bank.Which of the following is a true statement upon borrowing the money?

Carrie billed her legal clients $8,000 for legal work completed during the month.This transaction will:

The purchase of supplies for cash would affect which account category?

How does the purchase of supplies on account affect the accounting equation?

Which of the following would result if a business purchased Equipment with a 40% down payment and the rest on account?

Which of the following would result if the business purchased supplies for cash?

If the assets owned by a business total $70,000 and liabilities total $30,000,then owner's equity totals $100,000.

Total liabilities are included in the statement of owner's equity.

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

If beginning capital was $120,000,ending capital is $90,000,and the owner's withdrawals were $15,000,the amount of net income or net loss was:

Which accounts are affected when the company provides services to a cash customer?

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

The increase or decrease in the owner's equity is reported on the:

Which accounts are affected when the owner withdraws cash from the business?

If the assets owned by a business total $50,000,owner's equity must also total $50,000.

In a shift of assets,the composition of the assets changes but total assets do not change.

Revenue is the same thing as Capital.

Bonnie's Baskets purchases $2,000 worth of office equipment on account.This causes:

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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