Question 1

Rob Cougar Landscaping has assets of $70,000 and equity of $30,000. Determine the amount of liabilities in the business.

Accepted Answer

A)  $100,000 
B)  $50,000 
C)  $40,000 
D)  None of the answers listed 
A)  $100,000 
B)  $50,000 
C)  $40,000 
D)  None of the answers listed

Question 2

Both sides of the fundamental accounting equation must always be equal.

Accepted Answer

A) True 
 B)False

Question 3

Equipment is listed as an asset because it is used up in a relatively long period of time.

Accepted Answer

A) True 
 B)False

Question 4

The liability created when supplies are bought on account is called an account payable.

Accepted Answer

A) True 
 B)False

Question 5

Professional Fees is a(n)

Accepted Answer

A)  asset. 
B)  liability. 
C)  revenue. 
D)  expense. 
A)  asset. 
B)  liability. 
C)  revenue. 
D)  expense.

Question 6

The fundamental accounting equation would remain in balance if equal amounts were added to both sides of the equation.

Accepted Answer

A) True 
 B)False

Question 7

Match the terms below with the correct definitions.
-Expresses the relationship between assets, liabilities, and owner's equity

Accepted Answer

A) Creditor 
B) Fundamental accounting equation 
C) Expenses 
D) Accounts 
E) Owner's equity
F)Accounts receivable
G)Asset
H)Cash
I)Business entity 
A) Creditor 
B) Fundamental accounting equation 
C) Expenses 
D) Accounts 
E) Owner's equity
F)Accounts receivable
G)Asset
H)Cash
I)Business entity

Question 8

Match the terms below with the correct definitions.
-Something a company owns of value

Accepted Answer

A) Creditor 
B) Fundamental accounting equation 
C) Expenses 
D) Accounts 
E) Owner's equity
F)Accounts receivable
G)Asset
H)Cash
I)Business entity 
A) Creditor 
B) Fundamental accounting equation 
C) Expenses 
D) Accounts 
E) Owner's equity
F)Accounts receivable
G)Asset
H)Cash
I)Business entity

Question 9

Graves Company bought supplies on credit, $1,800. What are the effects on the fundamental accounting equation?

Accepted Answer

A)  Assets increase $1,800; liabilities, no effect; owner's equity increases $1,800. 
B)  Assets decrease $1,800; liabilities, no effect; owner's equity decreases $1,800. 
C)  Assets, no effect; liabilities, increase $1,800; owner's equity decreases $1,800. 
D)  Assets increase $1,800; liabilities, increase $1,800; owner's equity, no effect. 
A)  Assets increase $1,800; liabilities, no effect; owner's equity increases $1,800. 
B)  Assets decrease $1,800; liabilities, no effect; owner's equity decreases $1,800. 
C)  Assets, no effect; liabilities, increase $1,800; owner's equity decreases $1,800. 
D)  Assets increase $1,800; liabilities, increase $1,800; owner's equity, no effect.

Question 10

In the fundamental accounting equation, assets are added to liabilities.

Accepted Answer

A) True 
 B)False

Question 11

Azure Company would record its rent bill for the month, which amounts to $920, as a(n):

Accepted Answer

A)  increase in cash. 
B)  decrease in accounts payable. 
C)  increase in expenses. 
D)  decrease in drawing. 
A)  increase in cash. 
B)  decrease in accounts payable. 
C)  increase in expenses. 
D)  decrease in drawing.

Question 12

Magna Company paid $2,400 for a 6-month liability insurance policy. At the time of payment, this transaction should be recorded as

Accepted Answer

A)  Insurance Expense, $2,400. 
B)  Prepaid Insurance, $2,400. 
C)  Insurance Expense, $400. 
D)  Prepaid Insurance, $400. 
A)  Insurance Expense, $2,400. 
B)  Prepaid Insurance, $2,400. 
C)  Insurance Expense, $400. 
D)  Prepaid Insurance, $400.

Rob Cougar Landscaping has assets of $70,000 and equity of $30,000. Determine the amount of liabilities in the business.

Both sides of the fundamental accounting equation must always be equal.

Equipment is listed as an asset because it is used up in a relatively long period of time.

The liability created when supplies are bought on account is called an account payable.

Professional Fees is a(n)

The fundamental accounting equation would remain in balance if equal amounts were added to both sides of the equation.

Match the terms below with the correct definitions. -Expresses the relationship between assets, liabilities, and owner's equity

Match the terms below with the correct definitions. -Something a company owns of value

Graves Company bought supplies on credit, $1,800. What are the effects on the fundamental accounting equation?

In the fundamental accounting equation, assets are added to liabilities.

Azure Company would record its rent bill for the month, which amounts to $920, as a(n):

Magna Company paid $2,400 for a 6-month liability insurance policy. At the time of payment, this transaction should be recorded as

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters

Exam 1: Asset, Liability, Owners Equity, Revenue, and Expense Accounts

Rob Cougar Landscaping has assets of $70,000 and equity of $30,000. Determine the amount of liabilities in the business.

Both sides of the fundamental accounting equation must always be equal.

Equipment is listed as an asset because it is used up in a relatively long period of time.

The liability created when supplies are bought on account is called an account payable.

Professional Fees is a(n)

The fundamental accounting equation would remain in balance if equal amounts were added to both sides of the equation.

Match the terms below with the correct definitions. -Expresses the relationship between assets, liabilities, and owner's equity

Match the terms below with the correct definitions. -Something a company owns of value

Graves Company bought supplies on credit, $1,800. What are the effects on the fundamental accounting equation?

In the fundamental accounting equation, assets are added to liabilities.

Azure Company would record its rent bill for the month, which amounts to $920, as a(n):

Magna Company paid $2,400 for a 6-month liability insurance policy. At the time of payment, this transaction should be recorded as

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters