Question 1

If a business issues a check for $100 to purchase office supplies,analyze the effect on the accounting equation.

Accepted Answer

A)  Financial Interest will increase 
B)  Property will decrease 
C)  Financial Interest will decrease 
D)  Total Property will remain the same 
A)  Financial Interest will increase 
B)  Property will decrease 
C)  Financial Interest will decrease 
D)  Total Property will remain the same

Question 2

If a business receives $5,000 on account from clients who owed money for services previously billed,identify the effect on the accounting equation

Accepted Answer

A)  assets decrease and liabilities increase. 
B)  liabilities decrease and owner's equity decreases. 
C)  assets remain the same and owner's equity remains the same. 
D)  owner's equity increases and revenue increases. 
A)  assets decrease and liabilities increase. 
B)  liabilities decrease and owner's equity decreases. 
C)  assets remain the same and owner's equity remains the same. 
D)  owner's equity increases and revenue increases.

Question 3

Withdrawals by the owner are reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 4

Funds taken from the business by the owner for personal use are called ___________________.

Accepted Answer

The answer of Funds taken from the business by the...

Question 5

When revenue is greater than expenses,the result is a net ___________________.

Accepted Answer

The answer of When revenue is greater than expenses,the result...

Question 6

The amount of net income or net loss is needed to complete the statement of owner's equity.

Accepted Answer

A) True 
 B)False

Question 7

The net income or net loss for the period is shown on both the income statement and the balance sheet.

Accepted Answer

A) True 
 B)False

Question 8

At the end of the first month of operations for Jackson's Catering Service,the business had the following accounts: Cash,$19,000;Prepaid Rent,$500;Equipment,$5,000 and Accounts Payable $2,000.By the end of the month,Jackson's had earned $20,000 of Revenues,$1,000 of Utilities Expenses and $1,500 of Salaries Expenses.Calculate the net income to be reported by the company for this first month.

Accepted Answer

A)  $20,000 
B)  $19,000 
C)  $17,500 
D)  $12,000 
A)  $20,000 
B)  $19,000 
C)  $17,500 
D)  $12,000

Question 9

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.   Had a computer repaired;payment is due in 30 days

Accepted Answer

plus Expen

Question 10

The income statement is also known as the profit and loss statement.

Accepted Answer

A) True 
 B)False

Question 11

When using the fundamental accounting equation,an accountant must make sure that total assets are always equal to total liabilities and owner's equity.

Accepted Answer

A) True 
 B)False

Question 12

A business transaction is a financial event that affects the resources of a business.

Accepted Answer

A) True 
 B)False

Question 13

The ____________________ is the financial report that shows the assets,liabilities,and owner's equity of a business on a specific date.

Accepted Answer

The answer of The ____________________ is the financial report that...

Exam 2: Analyzing Business Transactions

If a business issues a check for $100 to purchase office supplies,analyze the effect on the accounting equation.

If a business receives $5,000 on account from clients who owed money for services previously billed,identify the effect on the accounting equation

Withdrawals by the owner are reported on the income statement.

Funds taken from the business by the owner for personal use are called ___________________.

When revenue is greater than expenses,the result is a net ___________________.

The amount of net income or net loss is needed to complete the statement of owner's equity.

The net income or net loss for the period is shown on both the income statement and the balance sheet.

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. Had a computer repaired;payment is due in 30 days

The income statement is also known as the profit and loss statement.

When using the fundamental accounting equation,an accountant must make sure that total assets are always equal to total liabilities and owner's equity.

A business transaction is a financial event that affects the resources of a business.

The ____________________ is the financial report that shows the assets,liabilities,and owner's equity of a business on a specific date.

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