Question 1

Cash is an asset that would appear on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 2

Accounts Receivable results from earning revenue when cash is not yet received.

Accepted Answer

A) True 
 B)False

Question 3

Revenue is an asset.

Accepted Answer

A) True 
 B)False

Question 4

Indicate whether each of the following represents (1) Asset, (2) Liability, or (3) Owner's Equity:
1. ________ Office Supplies
2. ________ Accounts Payable
3. ________ Capital
4. ________ Cash
5. ________ Withdrawal
6. ________ Land
7. ________ Accounts Receivable
8. ________ Expense
9. ________ Equipment
10. ________ Revenue

Accepted Answer

1. Asset
2. Liability
3. Owner

Question 5

A transaction can occur which will affect only the assets side of the accounting equation.

Accepted Answer

A) True 
 B)False

Question 6

A purchase of a vehicle for cash would have what affect on the accounting equation?

Accepted Answer

A)  Total asset amount remains the same. 
B)  Total liabilities are overstated. 
C)  Total owner's equity is overstated. 
D)  Both A and B are correct. 
A)  Total asset amount remains the same. 
B)  Total liabilities are overstated. 
C)  Total owner's equity is overstated. 
D)  Both A and B are correct.

Question 7

Which of the following is a characteristic of a sole proprietorship?

Accepted Answer

A)  Business owned by more than one person 
B)  Easy to form 
C)  Each stockholder acts as an owner of the company 
D)  Can continue indefinitely 
A)  Business owned by more than one person 
B)  Easy to form 
C)  Each stockholder acts as an owner of the company 
D)  Can continue indefinitely

Question 8

Which of the following professional accounting designations has been replaced by "CPA"?

Accepted Answer

A)  CA 
B)  CMA 
C)  CGA 
D)  All of the above 
A)  CA 
B)  CMA 
C)  CGA 
D)  All of the above

Question 9

Which accounts are affected when the company provides services to a cash customer?

Accepted Answer

A)  Assets and Capital increase. 
B)  Liabilities and Capital increase. 
C)  Assets and Revenue increase. 
D)  None of the above are correct. 
A)  Assets and Capital increase. 
B)  Liabilities and Capital increase. 
C)  Assets and Revenue increase. 
D)  None of the above are correct.

Question 10

A partnership is a business which is

Accepted Answer

A)  easy to form. 
B)  ends with the death of a partner. 
C)  owned by more than one person. 
D)  All of these answers are correct. 
A)  easy to form. 
B)  ends with the death of a partner. 
C)  owned by more than one person. 
D)  All of these answers are correct.

Question 11

The ending capital figure on the statement of owner's equity will be used on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 12

A sample of a liability account is

Accepted Answer

A)  Supplies. 
B)  Fees Earned. 
C)  Accounts Receivable. 
D)  Accounts Payable. 
A)  Supplies. 
B)  Fees Earned. 
C)  Accounts Receivable. 
D)  Accounts Payable.

Question 13

An obligation that is payable to creditors is

Accepted Answer

A)  an asset. 
B)  a liability. 
C)  the owner's equity. 
D)  an expense. 
A)  an asset. 
B)  a liability. 
C)  the owner's equity. 
D)  an expense.

Question 14

Sonya invested cash in her new business. What effect will this have?

Accepted Answer

A)  Increase an asset and increase a liability. 
B)  Decrease an asset and increase a liability. 
C)  Increase an asset and increase owner's equity. 
D)  Increase an asset and decrease owner's equity. 
A)  Increase an asset and increase a liability. 
B)  Decrease an asset and increase a liability. 
C)  Increase an asset and increase owner's equity. 
D)  Increase an asset and decrease owner's equity.

Question 15

The accounting equation states that total assets must always equal total liabilities plus owner's equity.

Accepted Answer

A) True 
 B)False

Question 16

The basic accounting equation is: Assets = Liabilities.

Accepted Answer

A) True 
 B)False

Question 17

Legal services were provided to a credit customer. How would this affect the accounting equation?

Accepted Answer

A)  Cash and Accounts Receivable increase. 
B)  Accounts Payable and Capital increase. 
C)  Accounts Receivable and Revenue increase. 
D)  None of the above are correct. 
A)  Cash and Accounts Receivable increase. 
B)  Accounts Payable and Capital increase. 
C)  Accounts Receivable and Revenue increase. 
D)  None of the above are correct.

Question 18

Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes include

Accepted Answer

A)  Cash and Capital increase, $12,000. 
B)  Cash and Revenue increase $12,000. 
C)  Cash increases and Accounts Receivable decreases $12,000. 
D)  Accounts Receivable decreases and Capital increases $12,000. 
A)  Cash and Capital increase, $12,000. 
B)  Cash and Revenue increase $12,000. 
C)  Cash increases and Accounts Receivable decreases $12,000. 
D)  Accounts Receivable decreases and Capital increases $12,000.

Question 19

A Statement of owner's equity shows the change in capital.

Accepted Answer

A) True 
 B)False

Question 20

A legal firm would be considered a

Accepted Answer

A)  merchandise company. 
B)  manufacturer. 
C)  service company. 
D)  None of the above are correct. 
A)  merchandise company. 
B)  manufacturer. 
C)  service company. 
D)  None of the above are correct.

Cash is an asset that would appear on the balance sheet.

Accounts Receivable results from earning revenue when cash is not yet received.

Revenue is an asset.

Indicate whether each of the following represents (1) Asset, (2) Liability, or (3) Owner's Equity: 1. Office Supplies 2. Accounts Payable 3. Capital 4. Cash 5. Withdrawal 6. Land 7. Accounts Receivable 8. Expense 9. Equipment 10. Revenue

A transaction can occur which will affect only the assets side of the accounting equation.

A purchase of a vehicle for cash would have what affect on the accounting equation?

Which of the following is a characteristic of a sole proprietorship?

Which of the following professional accounting designations has been replaced by "CPA"?

Which accounts are affected when the company provides services to a cash customer?

A partnership is a business which is

The ending capital figure on the statement of owner's equity will be used on the balance sheet.

A sample of a liability account is

An obligation that is payable to creditors is

Sonya invested cash in her new business. What effect will this have?

The accounting equation states that total assets must always equal total liabilities plus owner's equity.

The basic accounting equation is: Assets = Liabilities.

Legal services were provided to a credit customer. How would this affect the accounting equation?

Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes include

A Statement of owner's equity shows the change in capital.

A legal firm would be considered a

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

Exam 1: Accounting Concepts and Procedures: an Introduction

Cash is an asset that would appear on the balance sheet.

Accounts Receivable results from earning revenue when cash is not yet received.

Revenue is an asset.

A transaction can occur which will affect only the assets side of the accounting equation.

A purchase of a vehicle for cash would have what affect on the accounting equation?

Which of the following is a characteristic of a sole proprietorship?

Which of the following professional accounting designations has been replaced by "CPA"?

Which accounts are affected when the company provides services to a cash customer?

A partnership is a business which is

The ending capital figure on the statement of owner's equity will be used on the balance sheet.

A sample of a liability account is

An obligation that is payable to creditors is

Sonya invested cash in her new business. What effect will this have?

The accounting equation states that total assets must always equal total liabilities plus owner's equity.

The basic accounting equation is: Assets = Liabilities.

Legal services were provided to a credit customer. How would this affect the accounting equation?

Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes include

A Statement of owner's equity shows the change in capital.

A legal firm would be considered a

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