Question 1

R. Ronald withdrew $50,000 from the business. This transaction should be recorded as 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 2

Every transaction is recorded in terms of increases and/or decreases in two or more accounts.

Accepted Answer

A) True 
 B)False

Question 3

Match the terms below with the correct definitions.
  
-Categories under the main headings Assets, Liabilities, Owner's Equity

Accepted Answer

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

Question 4

The purchase of an asset for cash will

Accepted Answer

A) increase total assets and decrease total liabilities. 
B) have no effect on total assets or total liabilities. 
C) increase total assets and increase total liabilities. 
D) increase total assets and increase total owner's equity. 
E) increase total assets and decrease total owner's equity. 
A) increase total assets and decrease total liabilities. 
B) have no effect on total assets or total liabilities. 
C) increase total assets and increase total liabilities. 
D) increase total assets and increase total owner's equity. 
E) increase total assets and decrease total owner's equity.

Question 5

The account ____________ is used to record amounts due from charge customers.

Accepted Answer

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

Question 6

Pidcoke Company sold services on account, $23,000. This transactions should be recorded as a(n)

Accepted Answer

A) increase to cash. 
B) decrease to revenue. 
C) increase to accounts receivable. 
D) increase to accounts payable. 
A) increase to cash. 
B) decrease to revenue. 
C) increase to accounts receivable. 
D) increase to accounts payable.

Question 7

The expanded accounting equation is

Accepted Answer

A) assets = liabilities + capital + drawing + revenue - expenses 
B) assets = liabilities - capital + drawing - revenue + expenses 
C) assets = liabilities + capital - drawing + revenue - expenses 
D) assets + capital = liabilities - drawing + revenue - expenses 
A) assets = liabilities + capital + drawing + revenue - expenses 
B) assets = liabilities - capital + drawing - revenue + expenses 
C) assets = liabilities + capital - drawing + revenue - expenses 
D) assets + capital = liabilities - drawing + revenue - expenses

Question 8

Match the terms below with the correct definitions.
  
-One to whom money is owed

Accepted Answer

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

Question 9

The borrowing of money will

Accepted Answer

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

Question 10

Liabilities represent amounts owed to creditors.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following equations is the fundamental accounting equation?

Accepted Answer

A) Assets - Liabilities = Owner's Equity 
B) Assets = Liabilities + Owner's Equity 
C) Assets + Liabilities = Owner's Equity 
D) Assets - Owner's Equity = Liabilities 
E) Assets + Owner's Equity = Liabilities 
A) Assets - Liabilities = Owner's Equity 
B) Assets = Liabilities + Owner's Equity 
C) Assets + Liabilities = Owner's Equity 
D) Assets - Owner's Equity = Liabilities 
E) Assets + Owner's Equity = Liabilities

Question 12

Explain the separate entity concept, including why it is important to accounting.

Accepted Answer

This concept means that a busi

Question 13

Ott Company sold services for cash. What are the effects on the fundamental accounting equation?

Accepted Answer

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

Question 14

Which of the following is not considered an account?

Accepted Answer

A) Equipment 
B) Revenues 
C) Accounts Payable 
D) Cash 
E) Accounts Receivable 
A) Equipment 
B) Revenues 
C) Accounts Payable 
D) Cash 
E) Accounts Receivable

Question 15

Which of the following is true?

Accepted Answer

A) Double-entry accounting requires that each transaction be recorded in at least one account. 
B) Every transaction is recorded as an increase and/or decrease in two or more accounts. 
C) Double-entry accounting requires that each transaction be recorded in only two accounts. 
D) After a transaction has been recorded it is acceptable for the accounting equation to be out of balance. 
A) Double-entry accounting requires that each transaction be recorded in at least one account. 
B) Every transaction is recorded as an increase and/or decrease in two or more accounts. 
C) Double-entry accounting requires that each transaction be recorded in only two accounts. 
D) After a transaction has been recorded it is acceptable for the accounting equation to be out of balance.

Question 16

Wages Expense is a(n)

Accepted Answer

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

Question 17

The _____________ means that a business is separated from its owners.

Accepted Answer

A) stand-alone entity concept 
B) equity concept 
C) separate entity concept 
D) fair value concept 
E) none of the answers listed 
A) stand-alone entity concept 
B) equity concept 
C) separate entity concept 
D) fair value concept 
E) none of the answers listed

Question 18

A business received $600 cash from charge customers to apply on account. The effect of the transaction is an increase in an asset and a(n)

Accepted Answer

A) increase in revenue. 
B) decrease in capital. 
C) decrease in a liability. 
D) decrease in an asset. 
E) increase in capital. 
A) increase in revenue. 
B) decrease in capital. 
C) decrease in a liability. 
D) decrease in an asset. 
E) increase in capital.

Question 19

The purchase of supplies for cash will

Accepted Answer

A) increase Supplies and decrease Cash. 
B) increase Supplies Expense and decrease Cash. 
C) decrease Cash and increase Accounts Payable. 
D) increase Supplies Expense and increase Accounts Payable. 
E) decrease Cash and increase Capital. 
A) increase Supplies and decrease Cash. 
B) increase Supplies Expense and decrease Cash. 
C) decrease Cash and increase Accounts Payable. 
D) increase Supplies Expense and increase Accounts Payable. 
E) decrease Cash and increase Capital.

Question 20

S. Storm has $20,000 invested in his business and the business owes creditors $8,000. Determine the amount of assets in the business.

Accepted Answer

A) $28,000 
B) $12,000 
C) $14,000 
D) None of the answers listed 
A) $28,000 
B) $12,000 
C) $14,000 
D) None of the answers listed

R. Ronald withdrew $50,000 from the business. This transaction should be recorded as a(n)

Every transaction is recorded in terms of increases and/or decreases in two or more accounts.

Match the terms below with the correct definitions. -Categories under the main headings Assets, Liabilities, Owner's Equity

The purchase of an asset for cash will

The account ____________ is used to record amounts due from charge customers.

Pidcoke Company sold services on account, $23,000. This transactions should be recorded as a(n)

The expanded accounting equation is

Match the terms below with the correct definitions. -One to whom money is owed

The borrowing of money will

Liabilities represent amounts owed to creditors.

Which of the following equations is the fundamental accounting equation?

Explain the separate entity concept, including why it is important to accounting.

Ott Company sold services for cash. What are the effects on the fundamental accounting equation?

Which of the following is not considered an account?

Which of the following is true?

Wages Expense is a(n)

The _____________ means that a business is separated from its owners.

A business received $600 cash from charge customers to apply on account. The effect of the transaction is an increase in an asset and a(n)

The purchase of supplies for cash will

S. Storm has $20,000 invested in his business and the business owes creditors $8,000. Determine the amount of assets in the business.

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

R. Ronald withdrew $50,000 from the business. This transaction should be recorded as a(n)

Every transaction is recorded in terms of increases and/or decreases in two or more accounts.

Match the terms below with the correct definitions. -Categories under the main headings Assets, Liabilities, Owner's Equity

The purchase of an asset for cash will

The account ____________ is used to record amounts due from charge customers.

Pidcoke Company sold services on account, $23,000. This transactions should be recorded as a(n)

The expanded accounting equation is

Match the terms below with the correct definitions. -One to whom money is owed

The borrowing of money will

Liabilities represent amounts owed to creditors.

Which of the following equations is the fundamental accounting equation?

Explain the separate entity concept, including why it is important to accounting.

Ott Company sold services for cash. What are the effects on the fundamental accounting equation?

Which of the following is not considered an account?

Which of the following is true?

Wages Expense is a(n)

The _____________ means that a business is separated from its owners.

A business received $600 cash from charge customers to apply on account. The effect of the transaction is an increase in an asset and a(n)

The purchase of supplies for cash will

S. Storm has $20,000 invested in his business and the business owes creditors $8,000. Determine the amount of assets in the business.

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