Question 1

The financial statement that should be completed first is the

Accepted Answer

A)  balance sheet. 
B)  statement of financial position. 
C)  statement of financial condition. 
D)  income statement. 
A)  balance sheet. 
B)  statement of financial position. 
C)  statement of financial condition. 
D)  income statement. D

Question 2

Expenses represent a decrease in liabilities.

Accepted Answer

A) True 
 B)False  False

Question 3

Financial statements commonly prepared by businesses include an income statement, a statement of owner's equity, and a balance sheet.

Accepted Answer

A) True 
 B)False  True

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

Falana received $7,000 in cash from a client for professional services rendered. This transaction would

Accepted Answer

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

Question 7

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 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

Match the terms with the definitions.
-A formal written promise to pay a supplier or lender a specified sum of money at a definite future 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 10

Any item a business owns that will provide future benefits is called owner's equity.

Accepted Answer

A) True 
 B)False

Question 11

According to the business entity concept, a proprietor may include nonbusiness assets and liabilities in the business entity's accounting records.

Accepted Answer

A) True 
 B)False

Question 12

Match the terms with the definitions.
-Reports beginning capital, plus net income, less withdrawals to compute ending capital.

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 13

If the revenue of a period exceeds the expenses, the excess represents a net loss.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

Match the terms with the definitions.
-Consists of the three basic accounting elements: assets = liabilities + owner's equity.

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

Meghan started her business by investing $30,000 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 20

Which phase of the accounting process involves recognizing the effect of transactions on assets, liabilities, owner's equity, revenue, and expenses of a business?

Accepted Answer

A)  input 
B)  processing 
C)  output 
D)  summarizing 
A)  input 
B)  processing 
C)  output 
D)  summarizing

The financial statement that should be completed first is the

Expenses represent a decrease in liabilities.

Financial statements commonly prepared by businesses include an income statement, a statement of owner's equity, and a balance sheet.

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

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

Falana received $7,000 in cash from a client for professional services rendered. This transaction would

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

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

Match the terms with the definitions. -A formal written promise to pay a supplier or lender a specified sum of money at a definite future time.

Any item a business owns that will provide future benefits is called owner's equity.

According to the business entity concept, a proprietor may include nonbusiness assets and liabilities in the business entity's accounting records.

Match the terms with the definitions. -Reports beginning capital, plus net income, less withdrawals to compute ending capital.

If the revenue of a period exceeds the expenses, the excess represents a net loss.

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

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

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

Match the terms with the definitions. -Consists of the three basic accounting elements: assets = liabilities + owner's equity.

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

Meghan started her business by investing $30,000 in cash. This transaction would

Which phase of the accounting process involves recognizing the effect of transactions on assets, liabilities, owner's equity, revenue, and expenses of a business?

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: 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 a Professional Service Business: The Combination Journal

Filters

Exam 2: Analyzing Transactions: the Accounting Equation

The financial statement that should be completed first is the

Expenses represent a decrease in liabilities.

Financial statements commonly prepared by businesses include an income statement, a statement of owner's equity, and a balance sheet.

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

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

Falana received $7,000 in cash from a client for professional services rendered. This transaction would

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

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

Match the terms with the definitions. -A formal written promise to pay a supplier or lender a specified sum of money at a definite future time.

Any item a business owns that will provide future benefits is called owner's equity.

According to the business entity concept, a proprietor may include nonbusiness assets and liabilities in the business entity's accounting records.

Match the terms with the definitions. -Reports beginning capital, plus net income, less withdrawals to compute ending capital.

If the revenue of a period exceeds the expenses, the excess represents a net loss.

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

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

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

Match the terms with the definitions. -Consists of the three basic accounting elements: assets = liabilities + owner's equity.

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

Meghan started her business by investing $30,000 in cash. This transaction would

Which phase of the accounting process involves recognizing the effect of transactions on assets, liabilities, owner's equity, revenue, and expenses of a business?

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: 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 a Professional Service Business: The Combination Journal

Filters