Question 1

The purchase of supplies for cash would affect which account category?

Accepted Answer

A)  Assets 
B)  Liabilities 
C)  Capital 
D)  Expense 
A)  Assets 
B)  Liabilities 
C)  Capital 
D)  Expense

Question 2

Items owned by the business such as land, supplies and equipment are

Accepted Answer

A)  assets. 
B)  liabilities. 
C)  owner's equity. 
D)  revenue. 
A)  assets. 
B)  liabilities. 
C)  owner's equity. 
D)  revenue.

Question 3

The cash purchase of a truck was recorded as a purchase on credit. This error would mean

Accepted Answer

A)  assets were overstated. 
B)  liabilities were overstated. 
C)  Answers A and B are correct. 
D)  None of the above are correct. 
A)  assets were overstated. 
B)  liabilities were overstated. 
C)  Answers A and B are correct. 
D)  None of the above are correct.

Question 4

Not-for-profit organizations

Accepted Answer

A)  aim to improve society in some way. 
B)  seek to maximize profits. 
C)  usually obtain funding from donations and government grants. 
D)  Both A and C are correct. 
A)  aim to improve society in some way. 
B)  seek to maximize profits. 
C)  usually obtain funding from donations and government grants. 
D)  Both A and C are correct.

Question 5

Use the following information to prepare 1) an income statement, 2) a statement of owner's equity, and 3) a balance sheet for the month ended March 31, 2020 for Bolthouse Company.
J. Bolthouse, Capital (beg.) $2,000
Revenue 900
Expenses 600
Withdrawals 150
Cash 3,000
Equipment 1,000
Accounts Receivable 150
Accounts Payable 2,000

Accepted Answer

Bolthouse Company
INCOME STATEMENT
For t

Question 6

Calculate the total Assets if the company has: Cash $100, Accounts Receivable $300, Accounts Payable $500, Equipment $600.

Accepted Answer

$1,000 = $

Question 7

Revenues generate an inflow of assets.

Accepted Answer

A) True 
 B)False

Question 8

Determine the beginning capital balance of a business having a ending capital balance of $10,900, no additional investments, withdrawals of $2,500, and a net income of $4,100.

Accepted Answer

$9,300 [$1

Question 9

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

Accepted Answer

A)  owner's withdrawals decrease net income. 
B)  net income causes liabilities to decrease. 
C)  the business will incur a loss. 
D)  owner's withdrawals increase owner's equity. 
A)  owner's withdrawals decrease net income. 
B)  net income causes liabilities to decrease. 
C)  the business will incur a loss. 
D)  owner's withdrawals increase owner's equity.

Question 10

A revenue should be recorded when

Accepted Answer

A)  it is earned. 
B)  payment is received. 
C)  the invoice is sent to the customer. 
D)  None of the above are correct. 
A)  it is earned. 
B)  payment is received. 
C)  the invoice is sent to the customer. 
D)  None of the above are correct.

Question 11

The statement of owner's equity is the link between the income statement and balance sheet.

Accepted Answer

A) True 
 B)False

Question 12

On the Income Statement, the total of Expenses is always shown with a dollar sign ($).

Accepted Answer

A) True 
 B)False

Question 13

The Sarbanes-Oxley Act in the United States and National Policies in Canada were passed to

Accepted Answer

A)  prevent fraud at public companies. 
B)  replace all of the old accounting procedures with new ones. 
C)  improve the accuracy of the company's financial reporting. 
D)  Both A and C are correct. 
A)  prevent fraud at public companies. 
B)  replace all of the old accounting procedures with new ones. 
C)  improve the accuracy of the company's financial reporting. 
D)  Both A and C are correct.

Question 14

Determine the ending capital balance of a business which had a beginning capital balance of $1,970, additional investments of $530, withdrawals of $750, revenue of $3,790, and expenses of $2,600.

Accepted Answer

$2,940 [$1

Question 15

Stephanie purchased $10,000 of new electronic equipment for her DJ Company on account. The effect on the basic accounting equation was to

Accepted Answer

A)  decrease Cash $10,000 and increase Equipment $10,000. 
B)  increase Equipment $10,000 and increase Accounts Payable $10,000. 
C)  decrease Cash $10,000 and increase Accounts Payable $10,000. 
D)  increase Cash $10,000 and increase Equipment $10,000. 
A)  decrease Cash $10,000 and increase Equipment $10,000. 
B)  increase Equipment $10,000 and increase Accounts Payable $10,000. 
C)  decrease Cash $10,000 and increase Accounts Payable $10,000. 
D)  increase Cash $10,000 and increase Equipment $10,000.

Question 16

The statement of owner's equity shows assets, liabilities and capital.

Accepted Answer

A) True 
 B)False

Question 17

If expenses are more than revenue, a net loss is incurred.

Accepted Answer

A) True 
 B)False

Question 18

How does the purchase of equipment on account affect the accounting equation?

Accepted Answer

A)  Assets increase; liabilities decrease. 
B)  Assets increase; owner's equity increases. 
C)  Assets increase; liabilities increase. 
D)  Liabilities increase; owner's equity decreases. 
A)  Assets increase; liabilities decrease. 
B)  Assets increase; owner's equity increases. 
C)  Assets increase; liabilities increase. 
D)  Liabilities increase; owner's equity decreases.

Question 19

The payment of accounts payable 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 20

Cash investments by the owner increases both equity and assets.

Accepted Answer

A) True 
 B)False

The purchase of supplies for cash would affect which account category?

Items owned by the business such as land, supplies and equipment are

The cash purchase of a truck was recorded as a purchase on credit. This error would mean

Not-for-profit organizations

Calculate the total Assets if the company has: Cash $100, Accounts Receivable $300, Accounts Payable $500, Equipment $600.

Revenues generate an inflow of assets.

Determine the beginning capital balance of a business having a ending capital balance of $10,900, no additional investments, withdrawals of $2,500, and a net income of $4,100.

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

A revenue should be recorded when

The statement of owner's equity is the link between the income statement and balance sheet.

On the Income Statement, the total of Expenses is always shown with a dollar sign ($).

The Sarbanes-Oxley Act in the United States and National Policies in Canada were passed to

Determine the ending capital balance of a business which had a beginning capital balance of $1,970, additional investments of $530, withdrawals of $750, revenue of $3,790, and expenses of $2,600.

Stephanie purchased $10,000 of new electronic equipment for her DJ Company on account. The effect on the basic accounting equation was to

The statement of owner's equity shows assets, liabilities and capital.

If expenses are more than revenue, a net loss is incurred.

How does the purchase of equipment on account affect the accounting equation?

The payment of accounts payable would

Cash investments by the owner increases both equity and assets.

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

The purchase of supplies for cash would affect which account category?

Items owned by the business such as land, supplies and equipment are

The cash purchase of a truck was recorded as a purchase on credit. This error would mean

Not-for-profit organizations

Calculate the total Assets if the company has: Cash $100, Accounts Receivable $300, Accounts Payable $500, Equipment $600.

Revenues generate an inflow of assets.

Determine the beginning capital balance of a business having a ending capital balance of $10,900, no additional investments, withdrawals of $2,500, and a net income of $4,100.

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

A revenue should be recorded when

The statement of owner's equity is the link between the income statement and balance sheet.

On the Income Statement, the total of Expenses is always shown with a dollar sign ($).

The Sarbanes-Oxley Act in the United States and National Policies in Canada were passed to

Determine the ending capital balance of a business which had a beginning capital balance of $1,970, additional investments of $530, withdrawals of $750, revenue of $3,790, and expenses of $2,600.

Stephanie purchased $10,000 of new electronic equipment for her DJ Company on account. The effect on the basic accounting equation was to

The statement of owner's equity shows assets, liabilities and capital.

If expenses are more than revenue, a net loss is incurred.

How does the purchase of equipment on account affect the accounting equation?

The payment of accounts payable would

Cash investments by the owner increases both equity and assets.

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