Question 1

If total liabilities are $22,000 and owner's equity is $17,000, the total assets must be

Accepted Answer

A)  $39,000. 
B)  $5,000. 
C)  $20,000. 
D)  $17,000. 
A)  $39,000. 
B)  $5,000. 
C)  $20,000. 
D)  $17,000.

Question 2

Boxes R' Us paid $2,000 in salaries and wages for February. This transaction will

Accepted Answer

A)  increase expenses and decrease revenue. 
B)  increase expenses and increase liabilities. 
C)  decrease assets and increase expenses. 
D)  decrease assets and expenses. 
A)  increase expenses and decrease revenue. 
B)  increase expenses and increase liabilities. 
C)  decrease assets and increase expenses. 
D)  decrease assets and expenses.

Question 3

What is the difference between Bookkeeping and Accounting?

Accepted Answer

Bookkeeping is the recording function wi

Question 4

The left side of the accounting equation shows what is owned by the business.

Accepted Answer

A) True 
 B)False

Question 5

The function of accounting includes analyzing, recording, classifying, summarizing, reporting, and interpreting financial information.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following would result if the owner invested cash in the business?

Accepted Answer

A)  Cash would increase and Capital would decrease. 
B)  Cash would increase and Capital would increase. 
C)  Cash would decrease and Capital would increase. 
D)  An investment by the owner is not a business transaction. 
A)  Cash would increase and Capital would decrease. 
B)  Cash would increase and Capital would increase. 
C)  Cash would decrease and Capital would increase. 
D)  An investment by the owner is not a business transaction.

Question 7

Generally Accepted Accounting Principles are the procedures and guidelines that must be followed during the accounting process.

Accepted Answer

A) True 
 B)False

Question 8

If 'Ol Fashioned Toys' revenues are greater than its expenses during the accounting period

Accepted Answer

A)  assets will increase more than liabilities. 
B)  liabilities will increase more than assets. 
C)  the business will incur a loss. 
D)  the business will earn a net income. 
A)  assets will increase more than liabilities. 
B)  liabilities will increase more than assets. 
C)  the business will incur a loss. 
D)  the business will earn a net income.

Question 9

If liabilities are $10,000 and assets are $15,000, owner's equity will be $5,000.

Accepted Answer

A) True 
 B)False

Question 10

Bianca's Beverages purchases $2,500 worth of office equipment on account. This causes

Accepted Answer

A)  Cash and Capital to decrease. 
B)  Office Equipment and Accounts Payable to increase. 
C)  Office Equipment to decrease and Accounts Payable to increase. 
D)  Accounts Payable to increase and Capital to decrease. 
A)  Cash and Capital to decrease. 
B)  Office Equipment and Accounts Payable to increase. 
C)  Office Equipment to decrease and Accounts Payable to increase. 
D)  Accounts Payable to increase and Capital to decrease.

Question 11

Which of the following items are on both the balance sheet and the statement of owner's equity?

Accepted Answer

A)  Net loss 
B)  Capital 
C)  Additional owner's investments 
D)  Owner's withdrawals 
A)  Net loss 
B)  Capital 
C)  Additional owner's investments 
D)  Owner's withdrawals

Question 12

The income statement is for a particular date.

Accepted Answer

A) True 
 B)False

Question 13

Bob Allen's Company sells for cash a machine it purchased last week for its cost of $15,000. This has the effect of

Accepted Answer

A)  decreasing liabilities and increasing owner's equity. 
B)  decreasing assets and decreasing liabilities. 
C)  decreasing assets and increasing owner's equity. 
D)  no change to the overall accounting equation. 
A)  decreasing liabilities and increasing owner's equity. 
B)  decreasing assets and decreasing liabilities. 
C)  decreasing assets and increasing owner's equity. 
D)  no change to the overall accounting equation.

Question 14

Assets are equal to

Accepted Answer

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

Question 15

The four parts of owner's equity include capital, withdrawals, revenue, and expenses.

Accepted Answer

A) True 
 B)False

Question 16

Expenses are recorded as costs of doing business whether cash was paid or not.

Accepted Answer

A) True 
 B)False

Question 17

Withdrawals are considered an expense of doing business.

Accepted Answer

A) True 
 B)False

Question 18

Supplies are assets that have a longer life than equipment.

Accepted Answer

A) True 
 B)False

Question 19

The primary objective of a not-for-profit business is to maximize revenue.

Accepted Answer

A) True 
 B)False

Question 20

The heading of an income statement (in correct order) would include

Accepted Answer

A)  who, where, when. 
B)  who, what, why 
C)  why, what, where 
D)  who, what, when 
A)  who, where, when. 
B)  who, what, why 
C)  why, what, where 
D)  who, what, when

If total liabilities are $22,000 and owner's equity is $17,000, the total assets must be

Boxes R' Us paid $2,000 in salaries and wages for February. This transaction will

What is the difference between Bookkeeping and Accounting?

The left side of the accounting equation shows what is owned by the business.

The function of accounting includes analyzing, recording, classifying, summarizing, reporting, and interpreting financial information.

Which of the following would result if the owner invested cash in the business?

Generally Accepted Accounting Principles are the procedures and guidelines that must be followed during the accounting process.

If 'Ol Fashioned Toys' revenues are greater than its expenses during the accounting period

If liabilities are $10,000 and assets are $15,000, owner's equity will be $5,000.

Bianca's Beverages purchases $2,500 worth of office equipment on account. This causes

Which of the following items are on both the balance sheet and the statement of owner's equity?

The income statement is for a particular date.

Bob Allen's Company sells for cash a machine it purchased last week for its cost of $15,000. This has the effect of

Assets are equal to

The four parts of owner's equity include capital, withdrawals, revenue, and expenses.

Expenses are recorded as costs of doing business whether cash was paid or not.

Withdrawals are considered an expense of doing business.

Supplies are assets that have a longer life than equipment.

The primary objective of a not-for-profit business is to maximize revenue.

The heading of an income statement (in correct order) would include

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

If total liabilities are $22,000 and owner's equity is $17,000, the total assets must be

Boxes R' Us paid $2,000 in salaries and wages for February. This transaction will

What is the difference between Bookkeeping and Accounting?

The left side of the accounting equation shows what is owned by the business.

The function of accounting includes analyzing, recording, classifying, summarizing, reporting, and interpreting financial information.

Which of the following would result if the owner invested cash in the business?

Generally Accepted Accounting Principles are the procedures and guidelines that must be followed during the accounting process.

If 'Ol Fashioned Toys' revenues are greater than its expenses during the accounting period

If liabilities are $10,000 and assets are $15,000, owner's equity will be $5,000.

Bianca's Beverages purchases $2,500 worth of office equipment on account. This causes

Which of the following items are on both the balance sheet and the statement of owner's equity?

The income statement is for a particular date.

Bob Allen's Company sells for cash a machine it purchased last week for its cost of $15,000. This has the effect of

Assets are equal to

The four parts of owner's equity include capital, withdrawals, revenue, and expenses.

Expenses are recorded as costs of doing business whether cash was paid or not.

Withdrawals are considered an expense of doing business.

Supplies are assets that have a longer life than equipment.

The primary objective of a not-for-profit business is to maximize revenue.

The heading of an income statement (in correct order) would include

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