Question 1

What is the amount of Total Liabilities on the Balance Sheet?

Accepted Answer

A)  $240,116 
B)  $37,308 
C)  $63,124 
D)  $118,644 
A)  $240,116 
B)  $37,308 
C)  $63,124 
D)  $118,644

Question 2

Which of the following is an accurate description of the economic events involving Accounts Receivable as documented in the T-Account above?

Accepted Answer

A)  There were more customers paying off balances than there were customers adding to their balances. 
B)  There were more customers adding to their balances than paying off their balances. 
C)  The company paid off its debt more than it incurred new debt. 
D)  The company incurred more debt than it paid off. 
A)  There were more customers paying off balances than there were customers adding to their balances. 
B)  There were more customers adding to their balances than paying off their balances. 
C)  The company paid off its debt more than it incurred new debt. 
D)  The company incurred more debt than it paid off.

Question 3

The ledger consists of all of the accounts used by a business.

Accepted Answer

A) True 
 B)False

Question 4

The local branch of the Universal Bank System (UBS) receives money from depositors and lends it to borrowers. Which of the following would be true about UBS's financial statements?

Accepted Answer

A)  UBS reports deposits as assets and loans as liabilities. 
B)  UBS reports both deposits and loans as assets. 
C)  UBS reports deposits as liabilities and loans as assets. 
D)  UBS reports both deposits and loans as liabilities. 
A)  UBS reports deposits as assets and loans as liabilities. 
B)  UBS reports both deposits and loans as assets. 
C)  UBS reports deposits as liabilities and loans as assets. 
D)  UBS reports both deposits and loans as liabilities.

Question 5

A "classified" balance sheet is one that contains privileged information.
All liabilities require that the company sacrifice resources at some time in the future.
All companies use an identical list of account names defined by the Financial Accounting Standards Board
(FASB).

Accepted Answer

A)  None 
B)  One 
C)  Two 
D)  Three 
A)  None 
B)  One 
C)  Two 
D)  Three

Question 6

A company receives $100,000 cash from investors in exchange for stock. Several weeks later, the company buys a $250,000 machine using all of the cash from the stock issue and signing a promissory note for the remainder. The accounts involved in these two transactions are:

Accepted Answer

A)  Long-term Investments; Cash; Equipment; and Accounts Payable. 
B)  Contributed Capital; Cash; Long-term Investments; and Notes Payable. 
C)  Contributed Capital; Cash; Equipment; and Notes Payable. 
D)  Retained Earnings; Equipment; and Notes Payable. 
A)  Long-term Investments; Cash; Equipment; and Accounts Payable. 
B)  Contributed Capital; Cash; Long-term Investments; and Notes Payable. 
C)  Contributed Capital; Cash; Equipment; and Notes Payable. 
D)  Retained Earnings; Equipment; and Notes Payable.

Question 7

Current liabilities are expected to be

Accepted Answer

A)  converted to cash within one year. 
B)  paid within one year. 
C)  used in the business within one year. 
D)  acquired within one year. 
A)  converted to cash within one year. 
B)  paid within one year. 
C)  used in the business within one year. 
D)  acquired within one year.

Question 8

Which of the following would not be classified as a current asset?

Accepted Answer

A)  Cash 
B)  Accounts payable 
C)  Supplies 
D)  Inventory 
A)  Cash 
B)  Accounts payable 
C)  Supplies 
D)  Inventory

Question 9

A current asset is one that:

Accepted Answer

A)  the company has owned for over one year. 
B)  the company has owned for over five years. 
C)  the company will use up or convert into cash in less than one year. 
D)  the company will use up or convert into cash in less than five years. 
A)  the company has owned for over one year. 
B)  the company has owned for over five years. 
C)  the company will use up or convert into cash in less than one year. 
D)  the company will use up or convert into cash in less than five years.

Question 10

All of a company's business activities have a direct economic effect on the company.

Accepted Answer

A) True 
 B)False

Question 11

At the start of the first year of operations, retained earnings on the balance sheet would be:

Accepted Answer

A)  equal to zero. 
B)  equal to contributed capital. 
C)  equal to stockholders' equity. 
D)  equal to the negative of liabilities. 
A)  equal to zero. 
B)  equal to contributed capital. 
C)  equal to stockholders' equity. 
D)  equal to the negative of liabilities.

Question 12

According to the principle of conservatism, when faced with uncertainty about the value of an item, a company should use the measure that avoids:

Accepted Answer

A)  overstating assets and liabilities. 
B)  overstating assets and understating liabilities. 
C)  understating assets and overstating liabilities. 
D)  understating assets and liabilities. 
A)  overstating assets and liabilities. 
B)  overstating assets and understating liabilities. 
C)  understating assets and overstating liabilities. 
D)  understating assets and liabilities.

Question 13

Which of the following is a recordable transaction for the company, Bobby and Sandy Store?

Accepted Answer

A)  The company signed an agreement to rent store space at $200 month. 
B)  The vice president of the company spoke at a luncheon which contributed to enhancing the company's reputation as a responsible company. 
C)  The company ordered supplies for $500. 
D)  The company lent $500 to an employee. 
A)  The company signed an agreement to rent store space at $200 month. 
B)  The vice president of the company spoke at a luncheon which contributed to enhancing the company's reputation as a responsible company. 
C)  The company ordered supplies for $500. 
D)  The company lent $500 to an employee.

Question 14

A company entered into the following transaction: Purchased equipment for use in the business at a cost of $12,000, one-fourth was paid in cash and the company signed a note for the balance. Choose the TRUE
Statement about the journal entry to record this transaction.

Accepted Answer

A)  The journal entry will include a debit to Notes receivable of $3,000. 
B)  The journal entry will include a debit to Cash of $12,000. 
C)  The journal entry will include a credit to Notes payable of $9,000. 
D)  The journal entry will include a credit to Equipment $12,000. 
A)  The journal entry will include a debit to Notes receivable of $3,000. 
B)  The journal entry will include a debit to Cash of $12,000. 
C)  The journal entry will include a credit to Notes payable of $9,000. 
D)  The journal entry will include a credit to Equipment $12,000.

Question 15

The

Accepted Answer

A)  Equity financing refers to the money obtained through owners' contributions and reinvestments of profit. 
B)  Debt financing refers to the money obtained through loans. 
C)  The business is obligated to repay debt financing. 
D)  The business is obligated to repay equity financing. 
E)  Flynn Company started business by obtaining financing through debt financing and equity financing. Which of the following statements is FALSE? 
A)  Equity financing refers to the money obtained through owners' contributions and reinvestments of profit. 
B)  Debt financing refers to the money obtained through loans. 
C)  The business is obligated to repay debt financing. 
D)  The business is obligated to repay equity financing. 
E)  Flynn Company started business by obtaining financing through debt financing and equity financing. Which of the following statements is FALSE?

Question 16

What is the amount of total liabilities?

Accepted Answer

A)  $6,000 
B)  $15,600 
C)  $16,000 
D)  $5,600 
A)  $6,000 
B)  $15,600 
C)  $16,000 
D)  $5,600

Question 17

The standard formatting for a journal entry:

Accepted Answer

A)  lists credits first and then debits, both aligned to the left. 
B)  lists credits first and then debits, indented underneath. 
C)  lists debits first and then credits, both aligned to the right. 
D)  lists debits first and then credits, indented underneath. 
A)  lists credits first and then debits, both aligned to the left. 
B)  lists credits first and then debits, indented underneath. 
C)  lists debits first and then credits, both aligned to the right. 
D)  lists debits first and then credits, indented underneath.

Question 18

What is the minimum number of accounts that must be involved in any transaction?

Accepted Answer

A)  One. 
B)  Two. 
C)  Three. 
D)  No minimum. 
A)  One. 
B)  Two. 
C)  Three. 
D)  No minimum.

Question 19

Your company orders and broadcasts a 30 second ad during the Super Bowl for $1.2 million. It is lega lly obligated to pay for the ad but has not yet done so.

Accepted Answer

A)  This is an internal event and it does NOT affect the balance sheet. 
B)  This is an external event and it does NOT affect the balance sheet. 
C)  This is an internal event that affects the balance sheet. 
D)  This is an external event that affects the balance sheet. 
A)  This is an internal event and it does NOT affect the balance sheet. 
B)  This is an external event and it does NOT affect the balance sheet. 
C)  This is an internal event that affects the balance sheet. 
D)  This is an external event that affects the balance sheet.

Question 20

A Company has $15,000 of retained earnings, $26,000 of assets, and $6,000 of liabilities. How much is contributed capital?

Accepted Answer

A)  $36,000 
B)  $15,000 
C)  $5,000 
D)  $6,000 
A)  $36,000 
B)  $15,000 
C)  $5,000 
D)  $6,000

What is the amount of Total Liabilities on the Balance Sheet?

Which of the following is an accurate description of the economic events involving Accounts Receivable as documented in the T-Account above?

The ledger consists of all of the accounts used by a business.

The local branch of the Universal Bank System (UBS) receives money from depositors and lends it to borrowers. Which of the following would be true about UBS's financial statements?

A "classified" balance sheet is one that contains privileged information. All liabilities require that the company sacrifice resources at some time in the future. All companies use an identical list of account names defined by the Financial Accounting Standards Board (FASB).

A company receives $100,000 cash from investors in exchange for stock. Several weeks later, the company buys a $250,000 machine using all of the cash from the stock issue and signing a promissory note for the remainder. The accounts involved in these two transactions are:

Current liabilities are expected to be

Which of the following would not be classified as a current asset?

A current asset is one that:

All of a company's business activities have a direct economic effect on the company.

At the start of the first year of operations, retained earnings on the balance sheet would be:

According to the principle of conservatism, when faced with uncertainty about the value of an item, a company should use the measure that avoids:

Which of the following is a recordable transaction for the company, Bobby and Sandy Store?

A company entered into the following transaction: Purchased equipment for use in the business at a cost of $12,000, one-fourth was paid in cash and the company signed a note for the balance. Choose the TRUE Statement about the journal entry to record this transaction.

The

What is the amount of total liabilities?

The standard formatting for a journal entry:

What is the minimum number of accounts that must be involved in any transaction?

Your company orders and broadcasts a 30 second ad during the Super Bowl for $1.2 million. It is lega lly obligated to pay for the ad but has not yet done so.

A Company has $15,000 of retained earnings, $26,000 of assets, and $6,000 of liabilities. How much is contributed capital?

Business Decisions and Financial Accounting

Reporting Operating Results on the Income Statement

Adjustments, Financial Statements, and Financial Results

Financial Reporting and Analysis

Internal Control and Financial Reporting for Cash and Merchandise Sales

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables, Bad Debt Expense, and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting Stockholders Equity

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

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Exam 2: Reporting Investing and Financing Results on the Balance Sheet

What is the amount of Total Liabilities on the Balance Sheet?

Which of the following is an accurate description of the economic events involving Accounts Receivable as documented in the T-Account above?

The ledger consists of all of the accounts used by a business.

The local branch of the Universal Bank System (UBS) receives money from depositors and lends it to borrowers. Which of the following would be true about UBS's financial statements?

A "classified" balance sheet is one that contains privileged information. All liabilities require that the company sacrifice resources at some time in the future. All companies use an identical list of account names defined by the Financial Accounting Standards Board (FASB).

A company receives $100,000 cash from investors in exchange for stock. Several weeks later, the company buys a $250,000 machine using all of the cash from the stock issue and signing a promissory note for the remainder. The accounts involved in these two transactions are:

Current liabilities are expected to be

Which of the following would not be classified as a current asset?

A current asset is one that:

All of a company's business activities have a direct economic effect on the company.

At the start of the first year of operations, retained earnings on the balance sheet would be:

According to the principle of conservatism, when faced with uncertainty about the value of an item, a company should use the measure that avoids:

Which of the following is a recordable transaction for the company, Bobby and Sandy Store?

A company entered into the following transaction: Purchased equipment for use in the business at a cost of $12,000, one-fourth was paid in cash and the company signed a note for the balance. Choose the TRUE Statement about the journal entry to record this transaction.

The

What is the amount of total liabilities?

The standard formatting for a journal entry:

What is the minimum number of accounts that must be involved in any transaction?

Your company orders and broadcasts a 30 second ad during the Super Bowl for $1.2 million. It is lega lly obligated to pay for the ad but has not yet done so.

A Company has $15,000 of retained earnings, $26,000 of assets, and $6,000 of liabilities. How much is contributed capital?

Business Decisions and Financial Accounting

Reporting Operating Results on the Income Statement

Adjustments, Financial Statements, and Financial Results

Financial Reporting and Analysis

Internal Control and Financial Reporting for Cash and Merchandise Sales

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables, Bad Debt Expense, and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting Stockholders Equity

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

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