Question 1

Jamie's Lighting Company paid rent for the month, $2,500. What are the effects on the fundamental accounting equation?

Accepted Answer

A) Assets increase $2,500; liabilities, no effect; owner's equity increases $2,500. 
B) Assets decrease $2,500; liabilities, no effect; owner's equity increases $2,500. 
C) Assets decrease $2,500; liabilities, decrease $2,500; owner's equity, no effect. 
D) Assets decrease $2,500; liabilities, no effect; owner's equity decreases $2,500. 
A) Assets increase $2,500; liabilities, no effect; owner's equity increases $2,500. 
B) Assets decrease $2,500; liabilities, no effect; owner's equity increases $2,500. 
C) Assets decrease $2,500; liabilities, decrease $2,500; owner's equity, no effect. 
D) Assets decrease $2,500; liabilities, no effect; owner's equity decreases $2,500.

Question 2

Which of the following is a form of revenue?

Accepted Answer

A) A check paying a mortgage 
B) A credit purchase invoice 
C) Credit sales to charge customers 
D) A cash purchase invoice 
E) A check paying utilities 
A) A check paying a mortgage 
B) A credit purchase invoice 
C) Credit sales to charge customers 
D) A cash purchase invoice 
E) A check paying utilities

Question 3

When a company pays salaries to an assistant,

Accepted Answer

A) assets increase. 
B) expenses increase. 
C) liabilities increase. 
D) owner's equity increase. 
A) assets increase. 
B) expenses increase. 
C) liabilities increase. 
D) owner's equity increase.

Question 4

The deposit of cash by the owner in the name of the business would involve

Accepted Answer

A) increasing an asset and increasing a liability. 
B) increasing an asset and increasing owner's equity. 
C) decreasing an asset and increasing owner's equity. 
D) increasing an asset and increasing revenue. 
A) increasing an asset and increasing a liability. 
B) increasing an asset and increasing owner's equity. 
C) decreasing an asset and increasing owner's equity. 
D) increasing an asset and increasing revenue.

Question 5

The account, ___________, represents amounts earned by a business.

Accepted Answer

A) cash 
B) expenses 
C) accounts receivable 
D) revenue 
A) cash 
B) expenses 
C) accounts receivable 
D) revenue

Question 6

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 7

The liability account ______________ is used for short-term liabilities or charge accounts, usually due within 30 days.

Accepted Answer

A) Short-term Payable 
B) Liability Payable 
C) Accounts Payable 
D) Accounts Receivable 
A) Short-term Payable 
B) Liability Payable 
C) Accounts Payable 
D) Accounts Receivable

Question 8

When an owner deposits cash in an account in the name of the business, it is an increase to

Accepted Answer

A) Cash and Accounts Receivable. 
B) Cash and Drawing. 
C) Cash and Capital. 
D) Cash and Accounts Payable. 
E) Cash and Rent Expense. 
A) Cash and Accounts Receivable. 
B) Cash and Drawing. 
C) Cash and Capital. 
D) Cash and Accounts Payable. 
E) Cash and Rent Expense.

Question 9

The effect of expenses on the fundamental accounting equation is a(n)

Accepted Answer

A) increase to assets. 
B) decrease to owner's equity. 
C) increase to liabilities. 
D) increase to owner's equity. 
A) increase to assets. 
B) decrease to owner's equity. 
C) increase to liabilities. 
D) increase to owner's equity.

Question 10

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

Accepted Answer

The answer of Match the terms below with the correct...

Question 11

Otto Company paid a credit on account, $1,500. Which of the following is true in regards to the fundamental accounting equation?

Accepted Answer

A) Assets increased by $1,500. 
B) Liabilities increased by $1,500. 
C) Liabilities decreased by $1,500. 
D) Owner's equity increased by $1,500. 
E) Owner's equity decreased by $1,500. 
A) Assets increased by $1,500. 
B) Liabilities increased by $1,500. 
C) Liabilities decreased by $1,500. 
D) Owner's equity increased by $1,500. 
E) Owner's equity decreased by $1,500.

Question 12

Amounts owed by a business are referred to as

Accepted Answer

A) assets. 
B) equities. 
C) liabilities. 
D) capital. 
E) expenses. 
A) assets. 
B) equities. 
C) liabilities. 
D) capital. 
E) expenses.

Question 13

The amounts that the business entity owes its creditors are referred to as

Accepted Answer

A) assets. 
B) liabilities. 
C) owner's equity. 
D) revenues. 
E) expenses. 
A) assets. 
B) liabilities. 
C) owner's equity. 
D) revenues. 
E) expenses.

Question 14

A withdrawal by the owner is recorded as a deduction from assets and an increase in expenses.

Accepted Answer

A) True 
 B)False

Question 15

The owner's Drawing account is listed with the other expenses of a business.

Accepted Answer

A) True 
 B)False

Question 16

Newton Company bought equipment, paying cash, $25,000. Which of the following is true in regards to the fundamental accounting equation?

Accepted Answer

A) Total assets increased by $25,000. 
B) Total liabilities increased by $25,000. 
C) Total liabilities decreased by $25,000. 
D) Total Owner's Equity increased by $25,000. 
E) Total assets are unaffected. 
A) Total assets increased by $25,000. 
B) Total liabilities increased by $25,000. 
C) Total liabilities decreased by $25,000. 
D) Total Owner's Equity increased by $25,000. 
E) Total assets are unaffected.

Question 17

Accounts Receivable is a(n)

Accepted Answer

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

Question 18

An owner can invest cash or other assets of value in the business.

Accepted Answer

A) True 
 B)False

Question 19

Business transactions are expressed in terms of money.

Accepted Answer

A) True 
 B)False

Question 20

Palmer Hand Clinic has the following accounts and balances: Cash, $2,350
Accounts Receivable, $280
Professional Equipment, $1,200
Office Equipment, $6,700
Accounts Payable, $4,380
P. Palmer, Capital, $2,000
Income from Services, $6,000
Rent Expense, $1,850
What is the amount of owner's equity?

Accepted Answer

A) $6,150 
B) $2,000 
C) $8,000 
D) $4,150 
A) $6,150 
B) $2,000 
C) $8,000 
D) $4,150

Jamie's Lighting Company paid rent for the month, $2,500. What are the effects on the fundamental accounting equation?

Which of the following is a form of revenue?

When a company pays salaries to an assistant,

The deposit of cash by the owner in the name of the business would involve

The account, ___________, represents amounts earned by a business.

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

The liability account ______________ is used for short-term liabilities or charge accounts, usually due within 30 days.

When an owner deposits cash in an account in the name of the business, it is an increase to

The effect of expenses on the fundamental accounting equation is a(n)

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

Otto Company paid a credit on account, $1,500. Which of the following is true in regards to the fundamental accounting equation?

Amounts owed by a business are referred to as

The amounts that the business entity owes its creditors are referred to as

A withdrawal by the owner is recorded as a deduction from assets and an increase in expenses.

The owner's Drawing account is listed with the other expenses of a business.

Newton Company bought equipment, paying cash, $25,000. Which of the following is true in regards to the fundamental accounting equation?

Accounts Receivable is a(n)

An owner can invest cash or other assets of value in the business.

Business transactions are expressed in terms of money.

Palmer Hand Clinic has the following accounts and balances: Cash, $2,350 Accounts Receivable, $280 Professional Equipment, $1,200 Office Equipment, $6,700 Accounts Payable, $4,380 P. Palmer, Capital, $2,000 Income from Services, $6,000 Rent Expense, $1,850 What is the amount of owner's equity?

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 Including Appendix

Bank Accounts and Cash Funds

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

Filters

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

Jamie's Lighting Company paid rent for the month, $2,500. What are the effects on the fundamental accounting equation?

Which of the following is a form of revenue?

When a company pays salaries to an assistant,

The deposit of cash by the owner in the name of the business would involve

The account, ___________, represents amounts earned by a business.

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

The liability account ______________ is used for short-term liabilities or charge accounts, usually due within 30 days.

When an owner deposits cash in an account in the name of the business, it is an increase to

The effect of expenses on the fundamental accounting equation is a(n)

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

Otto Company paid a credit on account, $1,500. Which of the following is true in regards to the fundamental accounting equation?

Amounts owed by a business are referred to as

The amounts that the business entity owes its creditors are referred to as

A withdrawal by the owner is recorded as a deduction from assets and an increase in expenses.

The owner's Drawing account is listed with the other expenses of a business.

Newton Company bought equipment, paying cash, $25,000. Which of the following is true in regards to the fundamental accounting equation?

Accounts Receivable is a(n)

An owner can invest cash or other assets of value in the business.

Business transactions are expressed in terms of money.

Palmer Hand Clinic has the following accounts and balances: Cash, $2,350 Accounts Receivable, $280 Professional Equipment, $1,200 Office Equipment, $6,700 Accounts Payable, $4,380 P. Palmer, Capital, $2,000 Income from Services, $6,000 Rent Expense, $1,850 What is the amount of owner's equity?

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 Including Appendix

Bank Accounts and Cash Funds

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

Filters