Question 1

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 2

Which of the following is not an element of the financial accounting system?

Accepted Answer

A)  Rules for determining what, when and the amount that should be recorded 
B)  A framework for preparing financial statements 
C)  A set of rules for the stock exchange 
D)  Controls to determine whether errors occur during recording 
A)  Rules for determining what, when and the amount that should be recorded 
B)  A framework for preparing financial statements 
C)  A set of rules for the stock exchange 
D)  Controls to determine whether errors occur during recording

Question 3

Johnson, Inc. receives $5,000 cash for fees earned. What is the effect of this transaction?

Accepted Answer

A)  Total assets remain unchanged. 
B)  Cash flow from Financing Activities will increase. 
C)  Net income will increase. 
D)  Retained earnings will remain unchanged. 
A)  Total assets remain unchanged. 
B)  Cash flow from Financing Activities will increase. 
C)  Net income will increase. 
D)  Retained earnings will remain unchanged.

Question 4

Rush Corporation borrowed $25,000 from the bank. Which of the following accurately shows the effects of the transaction?

Accepted Answer

A)  Increase cash $25,000 and decrease notes payable $25,000 
B)  Increase cash $25,000 and increase notes payable $25,000 
C)  Decrease cash $25,000 and decrease notes payable $25,000 
D)  Decrease cash $25,000 and increase notes payable $25,000 
A)  Increase cash $25,000 and decrease notes payable $25,000 
B)  Increase cash $25,000 and increase notes payable $25,000 
C)  Decrease cash $25,000 and decrease notes payable $25,000 
D)  Decrease cash $25,000 and increase notes payable $25,000

Question 5

For EFG Co., the transaction "receipt of a utility bill" would:

Accepted Answer

A)  increase total assets. 
B)  decrease total assets. 
C)  have no effect on total assets. 
D)  decrease total liabilities. 
A)  increase total assets. 
B)  decrease total assets. 
C)  have no effect on total assets. 
D)  decrease total liabilities.

Question 6

Dividends are an example of an expense.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following group of accounts are all assets?

Accepted Answer

A)  Cash, Accounts Payable, Buildings 
B)  Accounts Receivable, Revenue, Cash 
C)  Prepaid Expenses, Buildings, Patents 
D)  Unearned Revenues, Prepaid Expenses, Cash 
A)  Cash, Accounts Payable, Buildings 
B)  Accounts Receivable, Revenue, Cash 
C)  Prepaid Expenses, Buildings, Patents 
D)  Unearned Revenues, Prepaid Expenses, Cash

Question 8

DAF Company paid a utility bill of $300 and paid rent of $700 in December. By how much would these events reduce stockholders' equity?

Accepted Answer

A)  $300 
B)  $1,000 
C)  $400 
D)  $700 
A)  $300 
B)  $1,000 
C)  $400 
D)  $700

Question 9

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 10

Miscellaneous expenses are expenses that have an undetermined amount to be paid.

Accepted Answer

A) True 
 B)False

Question 11

For EFG Co., the transaction "payment of quarterly taxes" would:

Accepted Answer

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

Question 12

For EFG Co., the transaction "billed a customer for fees earned" would:

Accepted Answer

A)  increase total assets. 
B)  decrease total assets. 
C)  have no effect on total assets. 
D)  increase total liabilities. 
A)  increase total assets. 
B)  decrease total assets. 
C)  have no effect on total assets. 
D)  increase total liabilities.

Question 13

A to Z Corporation purchased a building for $80,000 cash. 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 14

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 15

Hodges, Inc. had the following assets and liabilities as of September 30, 2013 $$\begin{array} { l l } 
\$56,327 & \text { Asset } \
\$28,416 & \text { Iiabilities }
\end{array}$$ If assets increased by $3,914 and equity increased by $2,290 during October, what is the increase or decrease in liabilities of Hodges as of October 31, 2013?

Accepted Answer

A)  ($1,624) 
B)  $1,624 
C)  $6,204 
D)  ($6,204) 
A)  ($1,624) 
B)  $1,624 
C)  $6,204 
D)  ($6,204)

Question 16

The two sides of the accounting equation do not have to be equal.

Accepted Answer

A) True 
 B)False

Question 17

Paying expenses 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

On May 1, the cash account balance was $72,600. During May, cash receipts totaled $345,600 and the May 31 balance was $95,230. Determine the cash payments made during May.

Accepted Answer

$95,230 = $72,600 +

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Johnson, Inc. paid rent expense of $3,500 for the month of October. How are the accounts affected due to this transaction?

Accepted Answer

A)  Increase in cash $3,500 and increase in retained earnings $3,500 
B)  Increase in cash $3,500 and decrease in retained earnings $3,500 
C)  Decrease in cash $3,500 and decrease in retained earnings $3,500 
D)  Decrease in cash $3,500 and increase in retained earnings $3,500 
A)  Increase in cash $3,500 and increase in retained earnings $3,500 
B)  Increase in cash $3,500 and decrease in retained earnings $3,500 
C)  Decrease in cash $3,500 and decrease in retained earnings $3,500 
D)  Decrease in cash $3,500 and increase in retained earnings $3,500

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

Which of the following is not an element of the financial accounting system?

Johnson, Inc. receives $5,000 cash for fees earned. What is the effect of this transaction?

Rush Corporation borrowed $25,000 from the bank. Which of the following accurately shows the effects of the transaction?

For EFG Co., the transaction "receipt of a utility bill" would:

Dividends are an example of an expense.

Which of the following group of accounts are all assets?

DAF Company paid a utility bill of $300 and paid rent of $700 in December. By how much would these events reduce stockholders' equity?

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

Miscellaneous expenses are expenses that have an undetermined amount to be paid.

For EFG Co., the transaction "payment of quarterly taxes" would:

For EFG Co., the transaction "billed a customer for fees earned" would:

A to Z Corporation purchased a building for $80,000 cash. On the Statement of Cash Flows, the transaction would be classified as:

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

Hodges, Inc. had the following assets and liabilities as of September 30, 2013 \5 6,327 Asset \2 8,416 Iiabilities If assets increased by $3,914 and equity increased by $2,290 during October, what is the increase or decrease in liabilities of Hodges as of October 31, 2013?

The two sides of the accounting equation do not have to be equal.

Paying expenses affects which financial statement elements?

On May 1, the cash account balance was $72,600. During May, cash receipts totaled $345,600 and the May 31 balance was $95,230. Determine the cash payments made during May.

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

Johnson, Inc. paid rent expense of $3,500 for the month of October. How are the accounts affected due to this transaction?

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

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Exam 2: Basic Accounting Concepts

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

Which of the following is not an element of the financial accounting system?

Johnson, Inc. receives $5,000 cash for fees earned. What is the effect of this transaction?

Rush Corporation borrowed $25,000 from the bank. Which of the following accurately shows the effects of the transaction?

For EFG Co., the transaction "receipt of a utility bill" would:

Dividends are an example of an expense.

Which of the following group of accounts are all assets?

DAF Company paid a utility bill of $300 and paid rent of $700 in December. By how much would these events reduce stockholders' equity?

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

Miscellaneous expenses are expenses that have an undetermined amount to be paid.

For EFG Co., the transaction "payment of quarterly taxes" would:

For EFG Co., the transaction "billed a customer for fees earned" would:

A to Z Corporation purchased a building for $80,000 cash. On the Statement of Cash Flows, the transaction would be classified as:

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

Hodges, Inc. had the following assets and liabilities as of September 30, 2013 \5 6,327 Asset \2 8,416 Iiabilities If assets increased by $3,914 and equity increased by $2,290 during October, what is the increase or decrease in liabilities of Hodges as of October 31, 2013?

The two sides of the accounting equation do not have to be equal.

Paying expenses affects which financial statement elements?

On May 1, the cash account balance was $72,600. During May, cash receipts totaled $345,600 and the May 31 balance was $95,230. Determine the cash payments made during May.

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

Johnson, Inc. paid rent expense of $3,500 for the month of October. How are the accounts affected due to this transaction?

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