Question 1

Match the terms with the definitions.
-An unwritten promise to pay a supplier for assets purchased or services rendered.

Accepted Answer

A) account 
B) accounts payable 
C) accounts receivable 
D) accounting equation 
E) assets
F)balance sheet
G)business entity
H)business entity concept
I)business transaction
J)drawing
K)expenses
L)income statement
M)liability
N)net income
O)net loss
P)notes payable
Q)owner's equity
R)revenues
S)statement of owner's equity 
A) account 
B) accounts payable 
C) accounts receivable 
D) accounting equation 
E) assets
F)balance sheet
G)business entity
H)business entity concept
I)business transaction
J)drawing
K)expenses
L)income statement
M)liability
N)net income
O)net loss
P)notes payable
Q)owner's equity
R)revenues
S)statement of owner's equity

Question 2

Match the terms with the definitions.
-An economic event that has a direct impact on the business.

Accepted Answer

A) account 
B) accounts payable 
C) accounts receivable 
D) accounting equation 
E) assets
F)balance sheet
G)business entity
H)business entity concept
I)business transaction
J)drawing
K)expenses
L)income statement
M)liability
N)net income
O)net loss
P)notes payable
Q)owner's equity
R)revenues
S)statement of owner's equity 
A) account 
B) accounts payable 
C) accounts receivable 
D) accounting equation 
E) assets
F)balance sheet
G)business entity
H)business entity concept
I)business transaction
J)drawing
K)expenses
L)income statement
M)liability
N)net income
O)net loss
P)notes payable
Q)owner's equity
R)revenues
S)statement of owner's equity

Question 3

An example of an expense is

Accepted Answer

A)  investments. 
B)  supplies consumed. 
C)  prepaid insurance. 
D)  withdrawals by the owner. 
A)  investments. 
B)  supplies consumed. 
C)  prepaid insurance. 
D)  withdrawals by the owner.

Question 4

Any accounting period of twelve months' duration is usually referred to as a(n)

Accepted Answer

A)  fiscal year. 
B)  calendar year. 
C)  physical year. 
D)  operational year. 
A)  fiscal year. 
B)  calendar year. 
C)  physical year. 
D)  operational year.

Question 5

Tyler paid $3,700 on account to the company from which equipment was purchased on credit. This transaction would

Accepted Answer

A)  decrease assets and decrease liabilities. 
B)  increase assets and increase owner's equity. 
C)  increase assets and increase liabilities. 
D)  increase one asset and decrease another asset. 
A)  decrease assets and decrease liabilities. 
B)  increase assets and increase owner's equity. 
C)  increase assets and increase liabilities. 
D)  increase one asset and decrease another asset.

Question 6

It is not necessary to measure a business transaction in dollars.

Accepted Answer

A) True 
 B)False

Question 7

Any accounting period of twelve months' duration is usually referred to as a fiscal year.

Accepted Answer

A) True 
 B)False

Question 8

A decrease in owner's equity may result from a(n)

Accepted Answer

A)  purchase of office supplies for cash. 
B)  withdrawal of cash from the business by the owner. 
C)  revenue that is derived from sales of goods or services. 
D)  investment of cash in the business by the owner. 
A)  purchase of office supplies for cash. 
B)  withdrawal of cash from the business by the owner. 
C)  revenue that is derived from sales of goods or services. 
D)  investment of cash in the business by the owner.

Question 9

Jason purchased office equipment for $4,800 in cash. This transaction would

Accepted Answer

A)  increase assets and increase owner's equity. 
B)  increase assets and increase liabilities. 
C)  increase one asset and decrease another asset. 
D)  decrease assets and decrease liabilities. 
A)  increase assets and increase owner's equity. 
B)  increase assets and increase liabilities. 
C)  increase one asset and decrease another asset. 
D)  decrease assets and decrease liabilities.

Question 10

Match the terms with the definitions.
-Reports assets, liabilities, and owner's equity on a specific date.

Accepted Answer

A) account 
B) accounts payable 
C) accounts receivable 
D) accounting equation 
E) assets
F)balance sheet
G)business entity
H)business entity concept
I)business transaction
J)drawing
K)expenses
L)income statement
M)liability
N)net income
O)net loss
P)notes payable
Q)owner's equity
R)revenues
S)statement of owner's equity 
A) account 
B) accounts payable 
C) accounts receivable 
D) accounting equation 
E) assets
F)balance sheet
G)business entity
H)business entity concept
I)business transaction
J)drawing
K)expenses
L)income statement
M)liability
N)net income
O)net loss
P)notes payable
Q)owner's equity
R)revenues
S)statement of owner's equity

Question 11

Dr. Etana Jenson is a podiatrist. As of December 31, Jenson owned the following assets related to the professional practice: $$\begin{array} { l r l r } 
\text { Cash } & \$ 6,600 & \text { X-ray Equipment } & \$ 9,000 \
\text { Office Equipment } & 3,500 & \text { Laboratory Equipment } & 3,000
\end{array}$$ As of that date, Jenson owed business suppliers as follows: $\begin{array}{lr}
\text { Top Flight Office Equipment Co. } & \$ 3,000 \
\text { Dunhill Medical Supplies Company } & 1,000 \
\text { Island Gas Company } & 2,200
\end{array}$ Required:

Accepted Answer

The answer of Dr. Etana Jenson is a podiatrist. As...

Question 12

Stephen purchased office supplies for $800 on account. This transaction would

Accepted Answer

A)  increase assets and increase owner's equity. 
B)  increase one asset and decrease another asset. 
C)  increase assets and increase liabilities. 
D)  decrease assets and decrease liabilities. 
A)  increase assets and increase owner's equity. 
B)  increase one asset and decrease another asset. 
C)  increase assets and increase liabilities. 
D)  decrease assets and decrease liabilities.

Question 13

Other terms used for owner's equity include net worth and capital.

Accepted Answer

A) True 
 B)False

Question 14

Match the terms with the definitions.
-Reports the profitability of business operations for a specific period of time.

Accepted Answer

A) account 
B) accounts payable 
C) accounts receivable 
D) accounting equation 
E) assets
F)balance sheet
G)business entity
H)business entity concept
I)business transaction
J)drawing
K)expenses
L)income statement
M)liability
N)net income
O)net loss
P)notes payable
Q)owner's equity
R)revenues
S)statement of owner's equity 
A) account 
B) accounts payable 
C) accounts receivable 
D) accounting equation 
E) assets
F)balance sheet
G)business entity
H)business entity concept
I)business transaction
J)drawing
K)expenses
L)income statement
M)liability
N)net income
O)net loss
P)notes payable
Q)owner's equity
R)revenues
S)statement of owner's equity

Question 15

Match the terms with the definitions.
-An amount owed to a business by its customers as a result of the sale of goods or services.

Accepted Answer

A) account 
B) accounts payable 
C) accounts receivable 
D) accounting equation 
E) assets
F)balance sheet
G)business entity
H)business entity concept
I)business transaction
J)drawing
K)expenses
L)income statement
M)liability
N)net income
O)net loss
P)notes payable
Q)owner's equity
R)revenues
S)statement of owner's equity 
A) account 
B) accounts payable 
C) accounts receivable 
D) accounting equation 
E) assets
F)balance sheet
G)business entity
H)business entity concept
I)business transaction
J)drawing
K)expenses
L)income statement
M)liability
N)net income
O)net loss
P)notes payable
Q)owner's equity
R)revenues
S)statement of owner's equity

Question 16

Expenses represent a decrease in liabilities.

Accepted Answer

A) True 
 B)False

Question 17

Since supplies last for several months, they are recorded as assets.

Accepted Answer

A) True 
 B)False

Question 18

Match the terms with the definitions.
-A separate record used to summarize changes in each asset, liability, and owner's equity of a business.

Accepted Answer

A) account 
B) accounts payable 
C) accounts receivable 
D) accounting equation 
E) assets
F)balance sheet
G)business entity
H)business entity concept
I)business transaction
J)drawing
K)expenses
L)income statement
M)liability
N)net income
O)net loss
P)notes payable
Q)owner's equity
R)revenues
S)statement of owner's equity 
A) account 
B) accounts payable 
C) accounts receivable 
D) accounting equation 
E) assets
F)balance sheet
G)business entity
H)business entity concept
I)business transaction
J)drawing
K)expenses
L)income statement
M)liability
N)net income
O)net loss
P)notes payable
Q)owner's equity
R)revenues
S)statement of owner's equity

Question 19

The accounting equation shows the relationship among the three basic accounting elements-assets, expenses, and owner's equity.

Accepted Answer

A) True 
 B)False

Question 20

An accounts payable is an unwritten promise to pay a supplier for assets purchased or services rendered.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Transactions: the Accounting Equation

Match the terms with the definitions. -An unwritten promise to pay a supplier for assets purchased or services rendered.

Match the terms with the definitions. -An economic event that has a direct impact on the business.

An example of an expense is

Any accounting period of twelve months' duration is usually referred to as a(n)

Tyler paid $3,700 on account to the company from which equipment was purchased on credit. This transaction would

It is not necessary to measure a business transaction in dollars.

Any accounting period of twelve months' duration is usually referred to as a fiscal year.

A decrease in owner's equity may result from a(n)

Jason purchased office equipment for $4,800 in cash. This transaction would

Match the terms with the definitions. -Reports assets, liabilities, and owner's equity on a specific date.

Stephen purchased office supplies for $800 on account. This transaction would

Other terms used for owner's equity include net worth and capital.

Match the terms with the definitions. -Reports the profitability of business operations for a specific period of time.

Match the terms with the definitions. -An amount owed to a business by its customers as a result of the sale of goods or services.

Expenses represent a decrease in liabilities.

Since supplies last for several months, they are recorded as assets.

Match the terms with the definitions. -A separate record used to summarize changes in each asset, liability, and owner's equity of a business.

The accounting equation shows the relationship among the three basic accounting elements-assets, expenses, and owner's equity.

An accounts payable is an unwritten promise to pay a supplier for assets purchased or services rendered.

Introduction to Accounting

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for Accounts Receivable

Accounting for Notes and Interest

Accounting for Long-Term Assets

Accounting for Partnerships

Corporations: Organization and Capital Stocks

Corporations: Earnings, Taxes, Distributions, and the Retained Earnings Statement

Corporations: Bonds

Statement of Cash Flows

Analysis of Financial Statements

Departmental Accounting

Manufacturing Accounting: The Job Order Cost System

Manufacturing Accounting: The Work Sheet and Financial Statements

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