Question 1

Explain how the four financial statements are linked.

Accepted Answer

A financial accounting system is designe

Question 2

For EFG Co.,the transaction "cash sales to customers at a profit" would:

Accepted Answer

A) increase total assets. 
B) decrease total assets. 
C) have no effect on total assets. 
D) decrease stockholders' equity. 
A) increase total assets. 
B) decrease total assets. 
C) have no effect on total assets. 
D) decrease stockholders' equity.

Question 3

When an account receivable is collected in cash,the total assets of the business increase.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is true about liabilities?

Accepted Answer

A) Liabilities include insurance premium paid in advance. 
B) Liabilities arise when a company sells goods on account. 
C) Liabilities equal assets plus stockholders' equity. 
D) Liabilities are the debt owed by a company. 
A) Liabilities include insurance premium paid in advance. 
B) Liabilities arise when a company sells goods on account. 
C) Liabilities equal assets plus stockholders' equity. 
D) Liabilities are the debt owed by a company.

Question 5

Any given transaction must affect at least two different parts of the accounting equation.

Accepted Answer

A) True 
 B)False

Question 6

Stockholders' equity will be increased by:

Accepted Answer

A) increase in revenues. 
B) increase in expenses. 
C) payment of dividends. 
D) issuance of bonds. 
A) increase in revenues. 
B) increase in expenses. 
C) payment of dividends. 
D) issuance of bonds.

Question 7

Exhibit 2-1
Total Assets Total Liabilities
Beginning of the year $300,000 $130,000
End of the year $800,000 $550,000
-Refer to Exhibit 2-1.Determine the net income (or loss),assuming $50,000 of stock was issued and $40,000 of dividends were paid?

Accepted Answer

A) $70,000 
B) $210,000 
C) $260,000 
D) $10,000 
A) $70,000 
B) $210,000 
C) $260,000 
D) $10,000

Question 8

For EFG Co.,the transaction "purchase of store equipment with cash" would:

Accepted Answer

A) increase total assets. 
B) decrease total assets. 
C) have no effect on total assets. 
D) decrease stockholders' equity. 
A) increase total assets. 
B) decrease total assets. 
C) have no effect on total assets. 
D) decrease stockholders' equity.

Question 9

An increase in Stockholders' Equity from revenues earned will also result in an increase in:

Accepted Answer

A) liabilities. 
B) assets. 
C) expenses. 
D) cash flow from financing activities. 
A) liabilities. 
B) assets. 
C) expenses. 
D) cash flow from financing activities.

Question 10

The statement of cash flows is integrated with the balance sheet because:

Accepted Answer

A) the cash at the beginning of the period plus or minus the cash flows from operating,investing,and financing activities equals the end of period cash reported on the balance sheet. 
B) the cash at the beginning of the period plus or minus the net income equals the end of period cash reported on the balance sheet. 
C) the cash at the beginning of the period plus or minus assets and liabilities equals the end of period cash reported on the balance sheet. 
D) the cash at the beginning of the period plus or minus the cash flows from operating activities equals the end of period cash reported on the balance sheet. 
A) the cash at the beginning of the period plus or minus the cash flows from operating,investing,and financing activities equals the end of period cash reported on the balance sheet. 
B) the cash at the beginning of the period plus or minus the net income equals the end of period cash reported on the balance sheet. 
C) the cash at the beginning of the period plus or minus assets and liabilities equals the end of period cash reported on the balance sheet. 
D) the cash at the beginning of the period plus or minus the cash flows from operating activities equals the end of period cash reported on the balance sheet.

Question 11

A transaction can affect at most two elements of the accounting equation.

Accepted Answer

A) True 
 B)False

Question 12

Buying equipment for cash affects which account/ accounts?

Accepted Answer

A) Cash only 
B) Retained earnings only 
C) Equipment and retained earnings 
D) Cash and equipment 
A) Cash only 
B) Retained earnings only 
C) Equipment and retained earnings 
D) Cash and equipment

Question 13

For EFG Co.,the transaction "payment to creditors" would:

Accepted Answer

A) increase total assets. 
B) decrease total assets. 
C) have no effect on total assets. 
D) decrease stockholders' equity. 
A) increase total assets. 
B) decrease total assets. 
C) have no effect on total assets. 
D) decrease stockholders' equity.

Question 14

Calculate the following:
(a)	Determine the cash receipts for May based on the following data:

(b)	Determine the cash received from customers on account during May based on the following data:

Accepted Answer

(a)$44,750 ($6,000 +

Question 15

Anthony,Inc.buys land for $50,000 cash.The net effect on assets is:

Accepted Answer

A) $50,000 increase. 
B) $0. 
C) $50,000 decrease. 
D) $25,000 increase. 
A) $50,000 increase. 
B) $0. 
C) $50,000 decrease. 
D) $25,000 increase.

Question 16

A common­sized balance sheet is prepared by expressing each stockholders' equity item as a percent of:

Accepted Answer

A) total sales. 
B) total liabilities plus stockholders' equity. 
C) total stockholders' equity. 
D) total liabilities. 
A) total sales. 
B) total liabilities plus stockholders' equity. 
C) total stockholders' equity. 
D) total liabilities.

Question 17

Cash receipts from cash sales affects which financial statement elements?

Accepted Answer

A) Assets only 
B) Stockholders' equity only 
C) Assets and stockholders' equity 
D) Assets and liabilities 
A) Assets only 
B) Stockholders' equity only 
C) Assets and stockholders' equity 
D) Assets and liabilities

Question 18

A to Z Corporation paid a $10,000 cash dividend.On the Statement of Cash Flows,the transaction would be classified as:

Accepted Answer

A) Cash Flows from Operating Activities. 
B) Cash Flows from Investing Activities. 
C) Cash Flows from Financing Activities. 
D) Noncash transaction. 
A) Cash Flows from Operating Activities. 
B) Cash Flows from Investing Activities. 
C) Cash Flows from Financing Activities. 
D) Noncash transaction.

Question 19

Exhibit 2-1
Total Assets Total Liabilities
Beginning of the year $300,000 $130,000
End of the year $800,000 $550,000
-Refer to Exhibit 2-1.Determine the net income (or loss),assuming no stock was issued and no dividends were paid?

Accepted Answer

A) $420,000 
B) $250,000 
C) $80,000 
D) $170,000 
A) $420,000 
B) $250,000 
C) $80,000 
D) $170,000

Question 20

Which of the following will increase stockholders' equity?

Accepted Answer

A) Expenses > revenues 
B) Owners' investment 
C) Accounts payable 
D) Dividends paid 
A) Expenses > revenues 
B) Owners' investment 
C) Accounts payable 
D) Dividends paid

Explain how the four financial statements are linked.

For EFG Co.,the transaction "cash sales to customers at a profit" would:

When an account receivable is collected in cash,the total assets of the business increase.

Which of the following statements is true about liabilities?

Any given transaction must affect at least two different parts of the accounting equation.

Stockholders' equity will be increased by:

Exhibit 2-1 Total Assets Total Liabilities Beginning of the year $300,000 $130,000 End of the year $800,000 $550,000 -Refer to Exhibit 2-1.Determine the net income (or loss),assuming $50,000 of stock was issued and $40,000 of dividends were paid?

For EFG Co.,the transaction "purchase of store equipment with cash" would:

An increase in Stockholders' Equity from revenues earned will also result in an increase in:

The statement of cash flows is integrated with the balance sheet because:

A transaction can affect at most two elements of the accounting equation.

Buying equipment for cash affects which account/ accounts?

For EFG Co.,the transaction "payment to creditors" would:

Calculate the following: (a) Determine the cash receipts for May based on the following data: (b) Determine the cash received from customers on account during May based on the following data:

Anthony,Inc.buys land for $50,000 cash.The net effect on assets is:

A commonsized balance sheet is prepared by expressing each stockholders' equity item as a percent of:

Cash receipts from cash sales affects which financial statement elements?

A to Z Corporation paid a $10,000 cash dividend.On the Statement of Cash Flows,the transaction would be classified as:

Exhibit 2-1 Total Assets Total Liabilities Beginning of the year $300,000 $130,000 End of the year $800,000 $550,000 -Refer to Exhibit 2-1.Determine the net income (or loss),assuming no stock was issued and no dividends were paid?

Which of the following will increase stockholders' equity?

The Role of Accounting in Business

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters

Exam 2: Basic Accounting Concepts

Explain how the four financial statements are linked.

For EFG Co.,the transaction "cash sales to customers at a profit" would:

When an account receivable is collected in cash,the total assets of the business increase.

Which of the following statements is true about liabilities?

Any given transaction must affect at least two different parts of the accounting equation.

Stockholders' equity will be increased by:

Exhibit 2-1 Total Assets Total Liabilities Beginning of the year $300,000 $130,000 End of the year $800,000 $550,000 -Refer to Exhibit 2-1.Determine the net income (or loss),assuming $50,000 of stock was issued and $40,000 of dividends were paid?

For EFG Co.,the transaction "purchase of store equipment with cash" would:

An increase in Stockholders' Equity from revenues earned will also result in an increase in:

The statement of cash flows is integrated with the balance sheet because:

A transaction can affect at most two elements of the accounting equation.

Buying equipment for cash affects which account/ accounts?

For EFG Co.,the transaction "payment to creditors" would:

Calculate the following: (a) Determine the cash receipts for May based on the following data: (b) Determine the cash received from customers on account during May based on the following data:

Anthony,Inc.buys land for $50,000 cash.The net effect on assets is:

A common­sized balance sheet is prepared by expressing each stockholders' equity item as a percent of:

Cash receipts from cash sales affects which financial statement elements?

A to Z Corporation paid a $10,000 cash dividend.On the Statement of Cash Flows,the transaction would be classified as:

Exhibit 2-1 Total Assets Total Liabilities Beginning of the year $300,000 $130,000 End of the year $800,000 $550,000 -Refer to Exhibit 2-1.Determine the net income (or loss),assuming no stock was issued and no dividends were paid?

Which of the following will increase stockholders' equity?

The Role of Accounting in Business

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters

A commonsized balance sheet is prepared by expressing each stockholders' equity item as a percent of: