Question 1

A company has the following data available:   What is the company's total stockholders' equity on December 31,2010?

Accepted Answer

A) $32,000 
B) $46,000 
C) $49,000 
D) $101,000 
A) $32,000 
B) $46,000 
C) $49,000 
D) $101,000 B

Question 2

Any event that affects the financial position of an organization and requires recording is called a(n)________.

Accepted Answer

A) transaction 
B) account 
C) posting 
D) recognition principle 
A) transaction 
B) account 
C) posting 
D) recognition principle A

Question 3

Yesterday Company's accountant recorded a debit to Accounts Payable and a credit to Cash.This transaction will ________.

Accepted Answer

A) increase Cash and decrease Accounts Payable 
B) decrease Cash and increase Accounts Payable 
C) increase Cash and increase Accounts Payable 
D) decrease Cash and decrease Accounts Payable 
A) increase Cash and decrease Accounts Payable 
B) decrease Cash and increase Accounts Payable 
C) increase Cash and increase Accounts Payable 
D) decrease Cash and decrease Accounts Payable D

Question 4

The ownership claim arising from funds contributed by the owners of the business is called ________.

Accepted Answer

A) liabilities 
B) retained earnings 
C) note payable 
D) paid-in capital 
A) liabilities 
B) retained earnings 
C) note payable 
D) paid-in capital

Question 5

What accounts are increased with debits?

Accepted Answer

A) assets and revenues 
B) assets and expenses 
C) liabilities and retained earnings 
D) expenses and paid-in capital 
A) assets and revenues 
B) assets and expenses 
C) liabilities and retained earnings 
D) expenses and paid-in capital

Question 6

This transaction will decrease income under both the accrual basis and the cash basis of accounting.

Accepted Answer

A) cash purchase of inventory 
B) payment of next period's rent 
C) payment of current period's rent 
D) purchase of inventory on account 
A) cash purchase of inventory 
B) payment of next period's rent 
C) payment of current period's rent 
D) purchase of inventory on account

Question 7

The statement of financial position is also called the ________.

Accepted Answer

A) income statement 
B) statement of cash flows 
C) statement of retained earnings 
D) balance sheet 
A) income statement 
B) statement of cash flows 
C) statement of retained earnings 
D) balance sheet

Question 8

A corporation is not a separate legal entity from its owners.

Accepted Answer

A) True 
 B)False

Question 9

After auditing a company,an accounting firm issues a(n)________.

Accepted Answer

A) bill of clean health 
B) financial report 
C) annual report 
D) audit opinion 
A) bill of clean health 
B) financial report 
C) annual report 
D) audit opinion

Question 10

An entity's economic obligations to nonowners are called ________.

Accepted Answer

A) owners' equity 
B) liabilities 
C) assets 
D) retained earnings 
A) owners' equity 
B) liabilities 
C) assets 
D) retained earnings

Question 11

Nonprofit organizations do not use balance sheets.

Accepted Answer

A) True 
 B)False

Question 12

Listed below are the transactions for Katherine Company:
1.The owners invest $80,000 in the company.
2.The company purchases equipment costing $16,000.They paid $6,000 cash and settled the remainder with a note payable.
3.The company purchases inventory costing $9,600 by paying $4,200 cash and putting the remainder on account.
4.The company paid $7,200 for four months rent in advance.
5.The company sold inventory for $8,700 cash.The cost of the inventory was $5,000.
6.The company used one month of rent.
7.The company declared a cash dividend of $500.
8.Depreciation expense on the equipment was $400 for the month.
Required:
Prepare journal entries for the above transactions.

Accepted Answer

The answer of Listed below are the transactions for Katherine...

Question 13

Yesteryear Company reports the following information on December 31,2011:   What are total liabilities at December 31,2011?

Accepted Answer

A) $71,000 
B) $77,000 
C) $79,000 
D) $171,000 
A) $71,000 
B) $77,000 
C) $79,000 
D) $171,000

Question 14

One of the limitations of the balance sheet is that the dollar amounts for different assets reflect different levels of inflation.That is the result of the ________ assumption.

Accepted Answer

A) recognition 
B) matching 
C) stable monetary unit 
D) conservatism 
A) recognition 
B) matching 
C) stable monetary unit 
D) conservatism

Question 15

A transaction is any event that affects the financial position of an organization and requires recording.

Accepted Answer

A) True 
 B)False

Question 16

The following information was extracted from the accounting records of Plum Company:   At December 31,2011,what is the total amount of liabilities?

Accepted Answer

A) $45,000 
B) $150,000 
C) $157,000 
D) $272,000 
A) $45,000 
B) $150,000 
C) $157,000 
D) $272,000

Question 17

Journal entries for the expiration of unexpired assets are usually made before the related cash flows.

Accepted Answer

A) True 
 B)False

Question 18

The accounting convention of ________ ignores the effects of price level changes on the financial statements.

Accepted Answer

A) recognition 
B) matching 
C) cost benefit analysis 
D) stable monetary unit 
A) recognition 
B) matching 
C) cost benefit analysis 
D) stable monetary unit

Question 19

When a company purchases inventory for cash,the net effect on the amount of total assets is zero.

Accepted Answer

A) True 
 B)False

Question 20

The adjusting entry that recognizes revenue earned on deferred revenues results in a(n)________.

Accepted Answer

A) increase in liabilities and a decrease in stockholders' equity 
B) decrease in liabilities and a decrease in stockholders' equity 
C) increase in liabilities and an increase in stockholders' equity 
D) decrease in liabilities and an increase in stockholders' equity 
A) increase in liabilities and a decrease in stockholders' equity 
B) decrease in liabilities and a decrease in stockholders' equity 
C) increase in liabilities and an increase in stockholders' equity 
D) decrease in liabilities and an increase in stockholders' equity

A company has the following data available: What is the company's total stockholders' equity on December 31,2010?

Any event that affects the financial position of an organization and requires recording is called a(n)________.

Yesterday Company's accountant recorded a debit to Accounts Payable and a credit to Cash.This transaction will ________.

The ownership claim arising from funds contributed by the owners of the business is called ________.

What accounts are increased with debits?

This transaction will decrease income under both the accrual basis and the cash basis of accounting.

The statement of financial position is also called the ________.

A corporation is not a separate legal entity from its owners.

After auditing a company,an accounting firm issues a(n)________.

An entity's economic obligations to nonowners are called ________.

Nonprofit organizations do not use balance sheets.

Yesteryear Company reports the following information on December 31,2011: What are total liabilities at December 31,2011?

One of the limitations of the balance sheet is that the dollar amounts for different assets reflect different levels of inflation.That is the result of the ________ assumption.

A transaction is any event that affects the financial position of an organization and requires recording.

The following information was extracted from the accounting records of Plum Company: At December 31,2011,what is the total amount of liabilities?

Journal entries for the expiration of unexpired assets are usually made before the related cash flows.

The accounting convention of ________ ignores the effects of price level changes on the financial statements.

When a company purchases inventory for cash,the net effect on the amount of total assets is zero.

The adjusting entry that recognizes revenue earned on deferred revenues results in a(n)________.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 15: Basic Accounting: Concepts, techniques, and Conventions

A company has the following data available: What is the company's total stockholders' equity on December 31,2010?

Any event that affects the financial position of an organization and requires recording is called a(n)________.

Yesterday Company's accountant recorded a debit to Accounts Payable and a credit to Cash.This transaction will ________.

The ownership claim arising from funds contributed by the owners of the business is called ________.

What accounts are increased with debits?

This transaction will decrease income under both the accrual basis and the cash basis of accounting.

The statement of financial position is also called the ________.

A corporation is not a separate legal entity from its owners.

After auditing a company,an accounting firm issues a(n)________.

An entity's economic obligations to nonowners are called ________.

Nonprofit organizations do not use balance sheets.

Yesteryear Company reports the following information on December 31,2011: What are total liabilities at December 31,2011?

One of the limitations of the balance sheet is that the dollar amounts for different assets reflect different levels of inflation.That is the result of the ________ assumption.

A transaction is any event that affects the financial position of an organization and requires recording.

The following information was extracted from the accounting records of Plum Company: At December 31,2011,what is the total amount of liabilities?

Journal entries for the expiration of unexpired assets are usually made before the related cash flows.

The accounting convention of ________ ignores the effects of price level changes on the financial statements.

When a company purchases inventory for cash,the net effect on the amount of total assets is zero.

The adjusting entry that recognizes revenue earned on deferred revenues results in a(n)________.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters