Question 1

Which of the following is NOT an asset?

Accepted Answer

A)  Cash 
B)  Accounts Receivable 
C)  Accounts Payable 
D)  Truck 
A)  Cash 
B)  Accounts Receivable 
C)  Accounts Payable 
D)  Truck

Question 2

Which of the following would result if the business purchased supplies on credit?

Accepted Answer

A)  Supplies would increase and Cash would decrease. 
B)  Supplies would increase and Capital would increase. 
C)  Supplies would increase and Accounts Payable would increase. 
D)  The purchase of supplies is not a business transaction. 
A)  Supplies would increase and Cash would decrease. 
B)  Supplies would increase and Capital would increase. 
C)  Supplies would increase and Accounts Payable would increase. 
D)  The purchase of supplies is not a business transaction.

Question 3

The left side of the accounting equation must always equal the right side of the equation.

Accepted Answer

A) True 
 B)False

Question 4

If a company's revenues are lower than its expenses, it will cause

Accepted Answer

A)  an increase in owner's equity. 
B)  a decrease in owner's equity. 
C)  an increase in assets. 
D)  no effect on owner's equity. 
A)  an increase in owner's equity. 
B)  a decrease in owner's equity. 
C)  an increase in assets. 
D)  no effect on owner's equity.

Question 5

What three elements make up a balance sheet?

Accepted Answer

A)  Liabilities, expenses, and owner's equity 
B)  Assets, liabilities, and revenues 
C)  Debts, assets, and cash 
D)  Assets, liabilities, and owner's equity 
A)  Liabilities, expenses, and owner's equity 
B)  Assets, liabilities, and revenues 
C)  Debts, assets, and cash 
D)  Assets, liabilities, and owner's equity

Question 6

Discuss the advantages and disadvantages of sole proprietorships, partnerships and corporations.

Accepted Answer

A sole proprietorship is a business that

Question 7

A sole proprietorship ends with the death of the owner.

Accepted Answer

A) True 
 B)False

Question 8

The balance sheet shows the company's financial position as of a particular date.

Accepted Answer

A) True 
 B)False

Question 9

Mark paid $500 cash to partially reduce the amount owed for equipment that was previously bought on account. This transaction would

Accepted Answer

A)  increase both assets and liabilities. 
B)  increase assets and decrease liabilities. 
C)  decrease both assets and liabilities. 
D)  decrease assets and increase liabilities. 
A)  increase both assets and liabilities. 
B)  increase assets and decrease liabilities. 
C)  decrease both assets and liabilities. 
D)  decrease assets and increase liabilities.

Question 10

Owner's withdrawals

Accepted Answer

A)  decrease assets. 
B)  increase expenses. 
C)  increase liabilities. 
D)  decrease withdrawals. 
A)  decrease assets. 
B)  increase expenses. 
C)  increase liabilities. 
D)  decrease withdrawals.

Question 11

A business paid $5,800 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to

Accepted Answer

A)  increase one asset, decrease another asset. 
B)  increase an asset, increase a liability. 
C)  decrease an asset, decrease a liability. 
D)  increase an asset, increase owner's equity. 
A)  increase one asset, decrease another asset. 
B)  increase an asset, increase a liability. 
C)  decrease an asset, decrease a liability. 
D)  increase an asset, increase owner's equity.

Question 12

If the beginning capital was $14,000 and in a fiscal period there was revenue of $8,000, withdrawals of $3,000, and expenses of $1,500 then the ending capital would be

Accepted Answer

A)  $26,500. 
B)  $23,500. 
C)  $17,500. 
D)  $20,500. 
A)  $26,500. 
B)  $23,500. 
C)  $17,500. 
D)  $20,500.

Question 13

J.R. Tenten's investment of cash and equipment in her existing business will

Accepted Answer

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

Question 14

The purpose of accounting is to provide decision-makers with useful, accurate information.

Accepted Answer

A) True 
 B)False

Question 15

The claims of creditors against the assets of a business are

Accepted Answer

A)  expenses. 
B)  revenues. 
C)  liabilities. 
D)  owner's equity. 
A)  expenses. 
B)  revenues. 
C)  liabilities. 
D)  owner's equity.

Question 16

The purchase of equipment with both cash and on account was recorded as only a credit purchase. Due to this error

Accepted Answer

A)  assets would be understated. 
B)  liabilities would be overstated. 
C)  owner's equity would be overstated. 
D)  None of the above are correct. 
A)  assets would be understated. 
B)  liabilities would be overstated. 
C)  owner's equity would be overstated. 
D)  None of the above are correct.

Question 17

Hazy Shades received and paid a utility bill for $725 for the month of March. This transaction will

Accepted Answer

A)  increase Cash and increase Utility Expense. 
B)  decrease Cash and increase Utility Expense. 
C)  increase Cash and decrease Utility Expense. 
D)  increase Utility Expense and decrease Withdrawal. 
A)  increase Cash and increase Utility Expense. 
B)  decrease Cash and increase Utility Expense. 
C)  increase Cash and decrease Utility Expense. 
D)  increase Utility Expense and decrease Withdrawal.

Question 18

Revenue, expenses, and withdrawals are subdivisions of

Accepted Answer

A)  assets. 
B)  liabilities. 
C)  owner's equity. 
D)  All of these answers are correct. 
A)  assets. 
B)  liabilities. 
C)  owner's equity. 
D)  All of these answers are correct.

Question 19

The financial statement that shows revenue and expenses for a period of time is the

Accepted Answer

A)  balance sheet. 
B)  income statement. 
C)  statement of owner's equity. 
D)  statement of cash flows. 
A)  balance sheet. 
B)  income statement. 
C)  statement of owner's equity. 
D)  statement of cash flows.

Question 20

A corporation

Accepted Answer

A)  can continue indefinitely. 
B)  is owned by stockholders. 
C)  has limited risk to stockholders. 
D)  all of the above. 
A)  can continue indefinitely. 
B)  is owned by stockholders. 
C)  has limited risk to stockholders. 
D)  all of the above.

Which of the following is NOT an asset?

Which of the following would result if the business purchased supplies on credit?

The left side of the accounting equation must always equal the right side of the equation.

If a company's revenues are lower than its expenses, it will cause

What three elements make up a balance sheet?

Discuss the advantages and disadvantages of sole proprietorships, partnerships and corporations.

A sole proprietorship ends with the death of the owner.

The balance sheet shows the company's financial position as of a particular date.

Mark paid $500 cash to partially reduce the amount owed for equipment that was previously bought on account. This transaction would

Owner's withdrawals

A business paid $5,800 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to

If the beginning capital was $14,000 and in a fiscal period there was revenue of $8,000, withdrawals of $3,000, and expenses of $1,500 then the ending capital would be

J.R. Tenten's investment of cash and equipment in her existing business will

The purpose of accounting is to provide decision-makers with useful, accurate information.

The claims of creditors against the assets of a business are

The purchase of equipment with both cash and on account was recorded as only a credit purchase. Due to this error

Hazy Shades received and paid a utility bill for $725 for the month of March. This transaction will

Revenue, expenses, and withdrawals are subdivisions of

The financial statement that shows revenue and expenses for a period of time is the

A corporation

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

Which of the following is NOT an asset?

Which of the following would result if the business purchased supplies on credit?

The left side of the accounting equation must always equal the right side of the equation.

If a company's revenues are lower than its expenses, it will cause

What three elements make up a balance sheet?

Discuss the advantages and disadvantages of sole proprietorships, partnerships and corporations.

A sole proprietorship ends with the death of the owner.

The balance sheet shows the company's financial position as of a particular date.

Mark paid $500 cash to partially reduce the amount owed for equipment that was previously bought on account. This transaction would

Owner's withdrawals

A business paid $5,800 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to

If the beginning capital was $14,000 and in a fiscal period there was revenue of $8,000, withdrawals of $3,000, and expenses of $1,500 then the ending capital would be

J.R. Tenten's investment of cash and equipment in her existing business will

The purpose of accounting is to provide decision-makers with useful, accurate information.

The claims of creditors against the assets of a business are

The purchase of equipment with both cash and on account was recorded as only a credit purchase. Due to this error

Hazy Shades received and paid a utility bill for $725 for the month of March. This transaction will

Revenue, expenses, and withdrawals are subdivisions of

The financial statement that shows revenue and expenses for a period of time is the

A corporation

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