Question 1

The time period covered in a balance sheet is for a stated year.

Accepted Answer

A) True 
 B)False  False

Question 2

When services are rendered but payment is not made, which account would be increased?

Accepted Answer

A)  Revenue 
B)  Expense 
C)  Accounts Payable 
D)  Cash 
A)  Revenue 
B)  Expense 
C)  Accounts Payable 
D)  Cash A

Question 3

Katie's Wedding Planning Service completed the following transactions:
a. Billed clients for service, $1,250.
b. Completed work for clients who paid $500 cash.
c. Received a bill for utilities to be paid later, $120.
d. Collected cash on account from clients, $700.
e. Paid the amount due for utilities.
f. Withdrew $500 cash for personal use.
Required: Record the above transactions in the expanded accounting equation. Note that the items have beginning balances.
Katie's Wedding Planning Service
                            ASSETS       =       LIAB.       OWNER'S EQUITY                                           Cash +       Accts.Rec.       =       Accts Payable       Mark's Capital       +Rev.       -Exp      -Katie, With.              beg.       $ 800      $ 85       =      $300      $235       $ 900       $400      $150               a.                                                                       b.                                                                       c.                                                                       d.                                                                       e.                                                                       .f                                                                       T

Accepted Answer

Katie's Wedding Planning Service

		ASSETS	=	LIAB.	OWNER'S EQUITY
	Cash +	Accts.Rec.	=	Accts Payable	Mark's Capital	+Rev.	-Exp	-Katie, With.
beg.	$ 800	$ 85	=	$300	$235	$ 900	$400	$150
a.		250	=			1,250
b.	500		=			500
c.			=	120			120
d.	700	-700	=
e.	-120		=	-120
.f	-500		=					500
T	$1380	$635	=	$300	$235	$2650	$520	$650

Question 4

The three elements that make up a balance sheet are assets, liabilities and expenses.

Accepted Answer

A) True 
 B)False

Question 5

Record the following transactions into the expanded accounting equation for the Jose Perez Company. Note all titles have beginning balances. (You will need to determine the beginning capital balance.)
a. Rendered services for cash, $40.
b. Billed customers for services rendered, $200.
c. Received the monthly utility bill to be paid later, $30.
d. Collected $60 on account from customers.
e. Paid the utility bill recorded in c.
f. Withdrew $30 cash for personal use.
Jose Perez Company                     ASSETS      = LIABILITIES      + OWNER`S EQUITY                      cash+       accounts receivable       accounts payable       J. Perez capital       +rev.      -exp        J. Perez withdrawals               Beginning Balance:                      +800       +50       =+200       +?       +700       -400       -200              a.                                                                 b.                                                                c.                                                                d.                                                                e.                                                                f.                                                                Totals:

Accepted Answer

Jose Perez

Question 6

If total liabilities increased by $16,000 and the assets increased by $20,000 during the accounting period, what is the change in the owner's equity amount?

Accepted Answer

A)  Increase of $4,000 
B)  Decrease of $4,000 
C)  Increase of $20,000 
D)  Decrease of $16,000 
A)  Increase of $4,000 
B)  Decrease of $4,000 
C)  Increase of $20,000 
D)  Decrease of $16,000

Question 7

Kal's Vegan Restaurant, with total assets of $80,000, borrows $25,000 from the bank. Which of the following is a TRUE statement upon borrowing the money?

Accepted Answer

A)  Total assets are now $105,000. 
B)  Total assets are now $80,000. 
C)  Total assets are now $25,000. 
D)  Total assets are now $55,000. 
A)  Total assets are now $105,000. 
B)  Total assets are now $80,000. 
C)  Total assets are now $25,000. 
D)  Total assets are now $55,000.

Question 8

Liam's Sporting Goods buys $35,000 of equipment on credit. Which of the following is a TRUE statement?

Accepted Answer

A)  Total assets increase. 
B)  Total assets are unchanged. 
C)  Total liabilities decrease. 
D)  Total liabilities are unchanged. 
A)  Total assets increase. 
B)  Total assets are unchanged. 
C)  Total liabilities decrease. 
D)  Total liabilities are unchanged.

Question 9

Accounting provides information to

Accepted Answer

A)  managers. 
B)  government. 
C)  investors. 
D)  All of these answers are correct 
A)  managers. 
B)  government. 
C)  investors. 
D)  All of these answers are correct

Question 10

Record the following transactions into the expanded accounting equation for the Mark's Accounting Firm. Note that all titles have beginning balances. (You will need to determine the beginning capital balance.)
a. Provided accounting services for cash, $2,400
b. Billed customers for services rendered, $4,800
c. Received and paid the monthly utility bill, $600
d. Collected $1,200 on account from customers
e. Paid supplies expense, $500
f. Withdrew $600 cash for personal use
                      &nbspMark's Accounting Firm
                            ASSETS       =       LIAB.       OWNER'S EQUITY                                           Cash +       Accts.Rec.       =       Accts Payable       Mark's Capital       +Rev.       -Exp       -Mark's Withdrawal              beg.        $1,800       $200       =                                                  a.                                                                       b.                                                                       c.                                                                       d.                                                                       e.                                                                       .f                                                                       T

Accepted Answer

Mark's Acc

Question 11

Record the following transactions in the basic accounting equation:
a. Luke invests $25,000 cash to begin a financial planning service.
b. The company buys office furniture for cash, $1,200.
c. The company buys additional office furniture on account, $600.
d. The company makes a payment on the office furniture, $400.
Luke's Financial Planning
ASSETS = LIABILITIES + OWNER'S EQUITY
Cash + Office Furniture  = Accounts  Payable + Luke's, Capital

a.
b.
c.
d.
Totals

Accepted Answer

Luke's Fin

Question 12

Which of the following is NOT a type of business organization?

Accepted Answer

A)  Corporation 
B)  Partnership 
C)  Sole proprietorship 
D)  Operation 
A)  Corporation 
B)  Partnership 
C)  Sole proprietorship 
D)  Operation

Question 13

Which of the following would have claims against the assets of the business?

Accepted Answer

A)  Cash and liabilities 
B)  Cash and Equipment 
C)  Equipment and liabilities 
D)  Liabilities and owner's equity 
A)  Cash and liabilities 
B)  Cash and Equipment 
C)  Equipment and liabilities 
D)  Liabilities and owner's equity

Question 14

The type of business organization that can continue indefinitely is known as a

Accepted Answer

A)  sole proprietorship. 
B)  partnership. 
C)  corporation. 
D)  None of the above. 
A)  sole proprietorship. 
B)  partnership. 
C)  corporation. 
D)  None of the above.

Question 15

The new accounting designation for Canada is CGA.

Accepted Answer

A) True 
 B)False

Question 16

An expense should be recorded when

Accepted Answer

A)  the bill is paid. 
B)  the expense is incurred. 
C)  a bill is received in the mail. 
D)  None of the above are correct. 
A)  the bill is paid. 
B)  the expense is incurred. 
C)  a bill is received in the mail. 
D)  None of the above are correct.

Question 17

Carrie billed her legal clients $5,000 for legal work completed during the month. This transaction will

Accepted Answer

A)  cause a $5,000 increase in revenues and liabilities. 
B)  cause a $5,000 increase in revenues and a decrease in liabilities. 
C)  cause a $5,000 increase in assets and revenues. 
D)  not be recorded until the cash is collected. 
A)  cause a $5,000 increase in revenues and liabilities. 
B)  cause a $5,000 increase in revenues and a decrease in liabilities. 
C)  cause a $5,000 increase in assets and revenues. 
D)  not be recorded until the cash is collected.

Question 18

Revenue and cash will always be the same amount.

Accepted Answer

A) True 
 B)False

Question 19

Withdrawals are business expenses that are included on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 20

The Owner's Equity of Leyla's Company is equal to one-quarter of the total assets. Liabilities equal $30,000. What is the amount of Owner's Equity?

Accepted Answer

A)  $40,000 
B)  $10,000 
C)  $30,000 
D)  None of these answers are correct. 
A)  $40,000 
B)  $10,000 
C)  $30,000 
D)  None of these answers are correct.

The time period covered in a balance sheet is for a stated year.

When services are rendered but payment is not made, which account would be increased?

The three elements that make up a balance sheet are assets, liabilities and expenses.

If total liabilities increased by $16,000 and the assets increased by $20,000 during the accounting period, what is the change in the owner's equity amount?

Kal's Vegan Restaurant, with total assets of $80,000, borrows $25,000 from the bank. Which of the following is a TRUE statement upon borrowing the money?

Liam's Sporting Goods buys $35,000 of equipment on credit. Which of the following is a TRUE statement?

Accounting provides information to

Which of the following is NOT a type of business organization?

Which of the following would have claims against the assets of the business?

The type of business organization that can continue indefinitely is known as a

The new accounting designation for Canada is CGA.

An expense should be recorded when

Carrie billed her legal clients $5,000 for legal work completed during the month. This transaction will

Revenue and cash will always be the same amount.

Withdrawals are business expenses that are included on the balance sheet.

The Owner's Equity of Leyla's Company is equal to one-quarter of the total assets. Liabilities equal $30,000. What is the amount of Owner's Equity?

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

	ASSETS		= LIABILITIES	+ OWNER`S EQUITY
	cash+	accounts receivable	accounts payable	J. Perez capital	+rev.	-exp	J. Perez withdrawals
Beginning Balance:
	+800	+50	=+200	+?	+700	-400	-200
a.
b.
c.
d.
e.
f.
Totals:

Exam 1: Accounting Concepts and Procedures: an Introduction

The time period covered in a balance sheet is for a stated year.

When services are rendered but payment is not made, which account would be increased?

The three elements that make up a balance sheet are assets, liabilities and expenses.

If total liabilities increased by $16,000 and the assets increased by $20,000 during the accounting period, what is the change in the owner's equity amount?

Kal's Vegan Restaurant, with total assets of $80,000, borrows $25,000 from the bank. Which of the following is a TRUE statement upon borrowing the money?

Liam's Sporting Goods buys $35,000 of equipment on credit. Which of the following is a TRUE statement?

Accounting provides information to

Which of the following is NOT a type of business organization?

Which of the following would have claims against the assets of the business?

The type of business organization that can continue indefinitely is known as a

The new accounting designation for Canada is CGA.

An expense should be recorded when

Carrie billed her legal clients $5,000 for legal work completed during the month. This transaction will

Revenue and cash will always be the same amount.

Withdrawals are business expenses that are included on the balance sheet.

The Owner's Equity of Leyla's Company is equal to one-quarter of the total assets. Liabilities equal $30,000. What is the amount of Owner's Equity?

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters