Question 1

If during the year total assets increase by $75,000 and total liabilities decrease by $16,000,by how much did owner's equity increase/decrease?

Accepted Answer

A)  $91,000 increase 
B)  $59,000 decrease 
C)  $91,000 decrease 
D)  $75,000 increase 
A)  $91,000 increase 
B)  $59,000 decrease 
C)  $91,000 decrease 
D)  $75,000 increase A

Question 2

Given the options below,identify the correct accounting equation formula.

Accepted Answer

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

Question 3

The Statement of Owner's Equity is calculated as follows:

Accepted Answer

A)  beginning capital + net income - withdrawals + additional investments = ending capital 
B)  beginning capital + net loss + withdrawals + additional investments = ending capital 
C)  beginning capital + net loss - withdrawals + additional investments = ending capital 
D)  beginning capital + net income + withdrawals + additional investments = ending capital 
A)  beginning capital + net income - withdrawals + additional investments = ending capital 
B)  beginning capital + net loss + withdrawals + additional investments = ending capital 
C)  beginning capital + net loss - withdrawals + additional investments = ending capital 
D)  beginning capital + net income + withdrawals + additional investments = ending capital A

Question 4

Al Dunn Bakery bought a new oven for $1,380.Al paid $300 as a cash down payment and will pay the balance in 30 days.Total assets increased by $1,080.

Accepted Answer

A) True 
 B)False

Question 5

The financial interest of the owner in a business is called owner's equity or ___________________.

Accepted Answer

The answer of The financial interest of the owner in...

Question 6

On September 1,Shawn Dahl established Whitewater Rentals,a canoe and kayak rental business.The following transactions occurred in the month of September and affected the following accounts:   Transactions
1.Shawn Dahl invested $45,000 in cash to open the business
2.Paid $12,700 in cash for the purchase of kayak and canoe equipment
3.Paid $1,050 in cash for rent expense
4.Purchased additional kayak and canoe equipment for $3,800 on credit
5.Received $3,900 in cash for kayak rentals
6.Rented canoes and kayaks for $1,200 on account
7.Purchased office equipment for $125 in cash
8.Received $800 in cash from credit clients
9.Shawn Dahl withdrew $1,500 in cash for personal expenses
Based on the information above,what is the fundamental accounting equation at the end of September for Whitewater Rentals?

Accepted Answer

Assets $51,350 = Lia

Question 7

The transactions listed below took place at the Mitchell Advertising Agency.These transactions affected the following accounts.Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.   Sent a check to a creditor

Accepted Answer

minus Acco

Question 8

An expense by definition is not:

Accepted Answer

A)  an amount a business must pay in the future. 
B)  an outflow of cash. 
C)  the use of other assets. 
D)  the incurring of a liability. 
A)  an amount a business must pay in the future. 
B)  an outflow of cash. 
C)  the use of other assets. 
D)  the incurring of a liability.

Question 9

Assets and liabilities are reported on

Accepted Answer

A)  the balance sheet. 
B)  the income statement. 
C)  the statement of owner's equity. 
D)  both the balance sheet and the income statement. 
A)  the balance sheet. 
B)  the income statement. 
C)  the statement of owner's equity. 
D)  both the balance sheet and the income statement.

Question 10

The transactions listed below took place at the Mitchell Advertising Agency.These transactions affected the following accounts.Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.   Received cash from credit customers

Accepted Answer

plus Cash;

Question 11

On September 1,Shawn Dahl established Whitewater Rentals,a canoe and kayak rental business.The following transactions occurred in the month of September and affected the following accounts:   Transactions
1.Shawn Dahl invested $45,000 in cash to open the business
2.Paid $12,700 in cash for the purchase of kayak and canoe equipment
3.Paid $1,050 in cash for rent expense
4.Purchased additional kayak and canoe equipment for $3,800 on credit
5.Received $3,900 in cash for kayak rentals
6.Rented canoes and kayaks for $1,200 on account
7.Purchased office equipment for $125 in cash
8.Received $800 in cash from credit clients
9.Shawn Dahl withdrew $1,500 in cash for personal expenses
Based on the information shown in transaction #4 above,indicate the accounts affected and use plus and minus to show the changes caused by the transaction.

Accepted Answer

plus Canoe and Kayak

Question 12

The balance sheet shows

Accepted Answer

A)  the results of business operations. 
B)  all revenues and expenses. 
C)  the amount of net income or loss. 
D)  the financial position of a business at a given time. 
A)  the results of business operations. 
B)  all revenues and expenses. 
C)  the amount of net income or loss. 
D)  the financial position of a business at a given time.

Question 13

The three-line heading of a financial statement shows who,what,and ___________________.

Accepted Answer

The answer of The three-line heading of a financial statement...

Question 14

A net loss results

Accepted Answer

A)  when expenses are greater than revenue. 
B)  when assets are greater than liabilities. 
C)  when revenue is greater than expenses. 
D)  when expenses are greater than assets. 
A)  when expenses are greater than revenue. 
B)  when assets are greater than liabilities. 
C)  when revenue is greater than expenses. 
D)  when expenses are greater than assets.

Question 15

If assets are $8,000 and liabilities are $2,000,owner's equity is $10,000.

Accepted Answer

A) True 
 B)False

Question 16

At the end of its first year of operations,Shapiro's Consulting Services reported net income of $25,000.They also had account balances of: Cash,$18,000;Office Supplies,$2,000 and Accounts Receivable $10,000.The owner's total investment for this first year was $5,000.Calculate the ending balance to be reported on the Statement of Owner's Equity in the Owner's Capital account.

Accepted Answer

A)  $30,000 
B)  $25,000 
C)  $20,000 
D)  $5,000 
A)  $30,000 
B)  $25,000 
C)  $20,000 
D)  $5,000

Question 17

The rent paid for future months is a(n)

Accepted Answer

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

Question 18

The transactions listed below took place at the Mitchell Advertising Agency.These transactions affected the following accounts.Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.   Performed services on credit

Accepted Answer

plus Accou

Question 19

When the owner withdraws cash for personal use,

Accepted Answer

A)  assets decrease and expenses increase. 
B)  assets decrease and owner's equity increases. 
C)  assets decrease and owner's equity decreases. 
D)  owner's equity decreases and revenue decreases. 
A)  assets decrease and expenses increase. 
B)  assets decrease and owner's equity increases. 
C)  assets decrease and owner's equity decreases. 
D)  owner's equity decreases and revenue decreases.

Question 20

If the owner takes cash out of the business for personal use,the withdrawal should be recorded as an expense of the business.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Business Transactions

If during the year total assets increase by $75,000 and total liabilities decrease by $16,000,by how much did owner's equity increase/decrease?

Given the options below,identify the correct accounting equation formula.

The Statement of Owner's Equity is calculated as follows:

Al Dunn Bakery bought a new oven for $1,380.Al paid $300 as a cash down payment and will pay the balance in 30 days.Total assets increased by $1,080.

The financial interest of the owner in a business is called owner's equity or ___________________.

The transactions listed below took place at the Mitchell Advertising Agency.These transactions affected the following accounts.Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. Sent a check to a creditor

An expense by definition is not:

Assets and liabilities are reported on

The transactions listed below took place at the Mitchell Advertising Agency.These transactions affected the following accounts.Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. Received cash from credit customers

The balance sheet shows

The three-line heading of a financial statement shows who,what,and ___________________.

A net loss results

If assets are $8,000 and liabilities are $2,000,owner's equity is $10,000.

The rent paid for future months is a(n)

The transactions listed below took place at the Mitchell Advertising Agency.These transactions affected the following accounts.Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. Performed services on credit

When the owner withdraws cash for personal use,

If the owner takes cash out of the business for personal use,the withdrawal should be recorded as an expense of the business.

Accounting: the Language of Business

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analyses

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

Filters