Question 1

The balance sheet reports assets, liabilities, and owner's equity on a specific date.

Accepted Answer

A) True 
 B)False

Question 2

Stephen purchased office supplies for $800 in cash. 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 3

Recognizing the effects of transactions on assets, liabilities, owner's equity, revenue, and expenses of a business is the processing function.

Accepted Answer

A) True 
 B)False

Question 4

The income statement provides information about events over a period of a month, year, or other period of time.

Accepted Answer

A) True 
 B)False

Question 5

The income statement and statement of owner's equity provide information covering a period of time.

Accepted Answer

A) True 
 B)False

Question 6

Match the terms with the definitions.
-The concept that nonbusiness assets and liabilities are not included in the business' accounting records.

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 7

Sue Lee paid $1,200 for office rent. This transaction would

Accepted Answer

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

Question 8

Liabilities represent an "inside" interest in a business.

Accepted Answer

A) True 
 B)False

Question 9

Match the terms with the definitions.
-The decrease in assets (or increase in liabilities) as a result of efforts to produce revenues.

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

The terms "profit and loss statement" or "operating statement" are sometimes used as synonyms for the balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

Since insurance lasts for several months, it is recorded as owner's equity.

Accepted Answer

A) True 
 B)False

Question 12

Match the terms with the definitions.
-Items a business owns that will provide future benefits.

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

Match the terms with the definitions.
-The excess of total revenues over total expenses for the period.

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 14

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 15

Jason purchased office equipment for $4,800 on account. 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 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

An increase in a revenue account may also result in an increase in the accounts receivable account.

Accepted Answer

A) True 
 B)False

Question 19

The financial statement that shows the state of the firm's assets, liabilities, and owner's equity on a specific date is called a(n)

Accepted Answer

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

Question 20

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

The balance sheet reports assets, liabilities, and owner's equity on a specific date.

Stephen purchased office supplies for $800 in cash. This transaction would

Recognizing the effects of transactions on assets, liabilities, owner's equity, revenue, and expenses of a business is the processing function.

The income statement provides information about events over a period of a month, year, or other period of time.

The income statement and statement of owner's equity provide information covering a period of time.

Match the terms with the definitions. -The concept that nonbusiness assets and liabilities are not included in the business' accounting records.

Sue Lee paid $1,200 for office rent. This transaction would

Liabilities represent an "inside" interest in a business.

Match the terms with the definitions. -The decrease in assets (or increase in liabilities) as a result of efforts to produce revenues.

The terms "profit and loss statement" or "operating statement" are sometimes used as synonyms for the balance sheet.

Since insurance lasts for several months, it is recorded as owner's equity.

Match the terms with the definitions. -Items a business owns that will provide future benefits.

Match the terms with the definitions. -The excess of total revenues over total expenses for the period.

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

Jason purchased office equipment for $4,800 on account. This transaction would

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

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

An increase in a revenue account may also result in an increase in the accounts receivable account.

The financial statement that shows the state of the firm's assets, liabilities, and owner's equity on a specific date is called a(n)

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.

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 balance sheet reports assets, liabilities, and owner's equity on a specific date.

Stephen purchased office supplies for $800 in cash. This transaction would

Recognizing the effects of transactions on assets, liabilities, owner's equity, revenue, and expenses of a business is the processing function.

The income statement provides information about events over a period of a month, year, or other period of time.

The income statement and statement of owner's equity provide information covering a period of time.

Match the terms with the definitions. -The concept that nonbusiness assets and liabilities are not included in the business' accounting records.

Sue Lee paid $1,200 for office rent. This transaction would

Liabilities represent an "inside" interest in a business.

Match the terms with the definitions. -The decrease in assets (or increase in liabilities) as a result of efforts to produce revenues.

The terms "profit and loss statement" or "operating statement" are sometimes used as synonyms for the balance sheet.

Since insurance lasts for several months, it is recorded as owner's equity.

Match the terms with the definitions. -Items a business owns that will provide future benefits.

Match the terms with the definitions. -The excess of total revenues over total expenses for the period.

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

Jason purchased office equipment for $4,800 on account. This transaction would

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

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

An increase in a revenue account may also result in an increase in the accounts receivable account.

The financial statement that shows the state of the firm's assets, liabilities, and owner's equity on a specific date is called a(n)

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.

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