Following is a list of account balances (except for owner's capital)of Wilson Mowing Service as of December 31 of the first year of operation: \[\begin{array} { | l | r | } \hline \text { Accounts receivable } & \$ 2,500 \\ \hline \text { Accounts payable } & 3,500 \\ \hline \text { Salary expense } & 4,500 \\ \hline \text { Repairs expense } & 800 \\ \hline \text { Truck } & 8,500 \\ \hline \text { Equipment } & 6,300 \\ \hline \text { Notes payable } & 8,200 \\ \hline \text { Cash } & 6,800 \\ \hline \text { Supplies expense } & 1,600 \\ \hline \text { Service revenue } & 31,900 \\ \hline \text { Gasoline expense } & 3,800 \\ \hline \text { Salary payable } & 200 \\ \hline \end{array}\] -The proprietor,J.D.Wilson,contributed $3,000 at the beginning of the year; during the year,the proprietor made $12,000 in drawings. At the end of the year,what is the amount of total owner's equity?

A) $11,900 B) $24,100 C) $21,200 D) $12,200 A) $11,900 B) $24,100 C) $21,200 D) $12,200

Exam 1: Accounting and the Business Environment

The assets and liabilities of Matt Wesley Auto Shop are as follows: Cash,$10,000; Accounts receivable,$8,200; Supplies,$1,050; Land,$25,000; Accounts payable,$6,530.What is the amount of owner's equity?

(Multiple Choice)

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Question 141

The taxable income of a proprietorship is:

(Multiple Choice)

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Question 142

Hamilton Lawn Service incurred $500 labor expense and promised to pay the labor agency within 30 days.Which of the following accounts decreased?

(Multiple Choice)

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Question 143

The proprietor of Martin Supply Services took a $5,000 cash withdrawal.Which of the following accounts decreased?

(Multiple Choice)

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Question 144

Which of the following financial statements reports that total assets equals total liabilities plus total owner's equity?

(Multiple Choice)

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Question 145

Net income is $29,000.Beginning capital balance was $34,000.Ending capital balance was $55,000.No capital contributions were made by the owner during the year.What amount of drawings was made?

(Multiple Choice)

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Question 146

Bill Rogers has three different businesses.He has only one bank account for transactions relating to all of his various businesses.Which of the following concepts or principles of accounting is Bill violating?

(Multiple Choice)

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Question 147

The financial examination of a company's financial records is called a(n):

(Multiple Choice)

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Question 148

Land is purchased by the business for $100,000.The company pays for land with a $20,000 cash payment and the execution of an $80,000 promissory note payable to the seller.How does this purchase affect the business's accounting equation?

(Multiple Choice)

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Question 149

Which of the following financial statements reports an increase or decrease in net cash during the time period covered?

(Multiple Choice)

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Question 150

If a proprietorship cannot pay its debts,the creditors may make claims against the:

(Multiple Choice)

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Question 151

The balance sheet of a business represents the account balances as of a particular date in time.

(True/False)

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Question 152

The Ragun Cajun Bar and Grill,Inc.has been a popular restaurant in Beaumont,Texas.With no insurance,a recent hurricane has left the business with large losses due to a damaged building and lost business income.Which of the following concepts or principles of accounting will be of the greatest concern to Ragun Cajun's auditors?

(Multiple Choice)

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Question 153

Hamilton Lawn Service earned $1,000 for services rendered and collected cash from its customer.What is the effect on accounts?

(Multiple Choice)

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Question 154

Which of the following concepts (or principles)addresses the ability of partners to commit other partners and the business to a contract?

(Multiple Choice)

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Question 155

Which of the following statements BEST defines financial statements?

(Multiple Choice)

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Question 156

From a legal perspective,a proprietorship is:

(Multiple Choice)

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Question 157

The largest businesses are usually organized as:

(Multiple Choice)

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Question 158

Following is a list of account balances (except for owner's capital)of Wilson Mowing Service as of December 31 of the first year of operation: Accounts receivable \ 2,500 Accounts payable 3,500 Salary expense 4,500 Repairs expense 800 Truck 8,500 Equipment 6,300 Notes payable 8,200 Cash 6,800 Supplies expense 1,600 Service revenue 31,900 Gasoline expense 3,800 Salary payable 200 -The proprietor,J.D.Wilson,contributed $3,000 at the beginning of the year; during the year,the proprietor made $12,000 in drawings. At the end of the year,what is the amount of total owner's equity?

(Multiple Choice)

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Question 159

ABC Delivery Service had the following transactions in June: Earned $4,000 cash for services rendered; collected $2,500 from a customer "on account;" paid out $200 cash for plumbing services; received $3,500 of supplies and promised to pay one month later; paid out $1,000 in cash drawings to the owner. -How much was Net income in June?

(Multiple Choice)

4.9/5

(70)

Question 160

Showing 141 - 160 of 161

The assets and liabilities of Matt Wesley Auto Shop are as follows: Cash,$10,000; Accounts receivable,$8,200; Supplies,$1,050; Land,$25,000; Accounts payable,$6,530.What is the amount of owner's equity?

The taxable income of a proprietorship is:

Hamilton Lawn Service incurred $500 labor expense and promised to pay the labor agency within 30 days.Which of the following accounts decreased?

The proprietor of Martin Supply Services took a $5,000 cash withdrawal.Which of the following accounts decreased?

Which of the following financial statements reports that total assets equals total liabilities plus total owner's equity?

Net income is $29,000.Beginning capital balance was $34,000.Ending capital balance was $55,000.No capital contributions were made by the owner during the year.What amount of drawings was made?

Bill Rogers has three different businesses.He has only one bank account for transactions relating to all of his various businesses.Which of the following concepts or principles of accounting is Bill violating?

The financial examination of a company's financial records is called a(n):

Land is purchased by the business for $100,000.The company pays for land with a $20,000 cash payment and the execution of an $80,000 promissory note payable to the seller.How does this purchase affect the business's accounting equation?

Which of the following financial statements reports an increase or decrease in net cash during the time period covered?

If a proprietorship cannot pay its debts,the creditors may make claims against the:

The balance sheet of a business represents the account balances as of a particular date in time.

Hamilton Lawn Service earned $1,000 for services rendered and collected cash from its customer.What is the effect on accounts?

Which of the following concepts (or principles)addresses the ability of partners to commit other partners and the business to a contract?

Which of the following statements BEST defines financial statements?

From a legal perspective,a proprietorship is:

The largest businesses are usually organized as:

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandising Inventory

Internal Control and Cash

Receivables

Plant Assets and Intangibles

Current Liabilities and Payroll

Long-Term Liabilities, bonds Payable, and Classification of Liabilities on the Balance Sheet

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