Question 1

Calculate the Total Liabilities if the company has: Assets totaling $600 and Capital of $450.
$ ________

Accepted Answer

($150 = $6

Question 2

Which of the following will decrease Owner's Equity?

Accepted Answer

A)  A sale of merchandise 
B)  The purchase of an asset on credit 
C)  An investment by the owner 
D)  A withdrawal by the owner 
A)  A sale of merchandise 
B)  The purchase of an asset on credit 
C)  An investment by the owner 
D)  A withdrawal by the owner

Question 3

The accounting equation states that total Assets must always equal total Liabilities plus Owner's Equity.

Accepted Answer

A) True 
 B)False

Question 4

Revenues should be recorded when:

Accepted Answer

A)  it is earned. 
B)  payment is received. 
C)  the invoice is sent to the customer. 
D)  All of the above are correct. 
A)  it is earned. 
B)  payment is received. 
C)  the invoice is sent to the customer. 
D)  All of the above are correct.

Question 5

What is the difference between Bookkeeping and Accounting?

Accepted Answer

Bookkeeping is the recording function wi

Question 6

Which financial statement is prepared last?

Accepted Answer

A)  Statement of Owner's Equity 
B)  Balance Sheet 
C)  Income Statement 
D)  None of the above 
A)  Statement of Owner's Equity 
B)  Balance Sheet 
C)  Income Statement 
D)  None of the above

Question 7

Generally Accepted Accounting Principles are the procedures and guidelines that must be followed every other year.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is NOT an Asset?

Accepted Answer

A)  Cash 
B)  Accounts Receivable 
C)  Buildings 
D)  All of the above are Assets. 
A)  Cash 
B)  Accounts Receivable 
C)  Buildings 
D)  All of the above are Assets.

Question 9

The income statement is a financial statement showing the change in owners' equity.

Accepted Answer

A) True 
 B)False

Question 10

Prepare the financial statements for H. Logan of Logan Motorcycles from the following account balances: 1) an income statement, 2) a statement of Owner's Equity, and 3) a balance sheet for the month ended October 31, 201x. You will need to calculate the value of the Accounts Payable account (note: remember the basic accounting equation).

Accepted Answer

The answer of Prepare the financial statements for H. Logan...

Question 11

If Ol' Fashioned Toys' Revenues are less than its Expenses during the accounting period:

Accepted Answer

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

Question 12

Crystal Clear Imagery received and paid a utility bill for $600 for the month of November. This transaction will:

Accepted Answer

A)  increase Cash and increase Utility Expense. 
B)  decrease Cash and increase Utility Expense. 
C)  increase Cash and decrease Utility Expense. 
D)  increase Utility Expense and decrease Revenue. 
A)  increase Cash and increase Utility Expense. 
B)  decrease Cash and increase Utility Expense. 
C)  increase Cash and decrease Utility Expense. 
D)  increase Utility Expense and decrease Revenue.

Question 13

If the Assets owned by a business total $59,000, Owner's Equity must also total $59,000.

Accepted Answer

A) True 
 B)False

Question 14

Mick's Mart collects $100 of its accounts receivable. The expanded accounting equation impact is:

Accepted Answer

A)  Cash and Capital increase $100. 
B)  Cash and Revenue increase $100. 
C)  Cash increases and Accounts Receivable decreases $100. 
D)  Accounts Receivable decreases and Capital increases $100. 
A)  Cash and Capital increase $100. 
B)  Cash and Revenue increase $100. 
C)  Cash increases and Accounts Receivable decreases $100. 
D)  Accounts Receivable decreases and Capital increases $100.

Question 15

If a company's Revenues are higher than its Expenses, it will cause:

Accepted Answer

A)  an increase in Owner's Equity. 
B)  a decrease in Owner's Equity. 
C)  an increase in Assets. 
D)  net loss. 
A)  an increase in Owner's Equity. 
B)  a decrease in Owner's Equity. 
C)  an increase in Assets. 
D)  net loss.

Question 16

Go Big Red Retail Store collected $16,000 of its accounts receivable. The expanded accounting equation changes include:

Accepted Answer

A)  Cash and Capital increase $16,000. 
B)  Cash and Revenue increase $16,000. 
C)  Cash increases and Accounts Receivable decreases $16,000. 
D)  Accounts Receivable decreases and Capital increases $16,000. 
A)  Cash and Capital increase $16,000. 
B)  Cash and Revenue increase $16,000. 
C)  Cash increases and Accounts Receivable decreases $16,000. 
D)  Accounts Receivable decreases and Capital increases $16,000.

Question 17

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

Accepted Answer

A)  Assets. 
B)  Liabilities. 
C)  Owner's Equity. 
D)  Expenses. 
A)  Assets. 
B)  Liabilities. 
C)  Owner's Equity. 
D)  Expenses.

Question 18

Record the following transactions into the expanded accounting equation for the Dora's Law Firm. Note that all titles have beginning balances. (You will need to determine the beginning capital balance.)
a. Provided legal services for cash, $700
b. Billed customers for services rendered, $2,500
c. Received and paid the monthly utility bill, $300
d. Collected $100 on account from customers
e. Paid supplies Expense, $250
f. Withdrew $200 cash for personal use
Dora's Law Firm

Accepted Answer

The answer of Record the following transactions into the expanded...

Question 19

If the Liabilities owed by a business total $150,000, then the Assets must also total $150,000.

Accepted Answer

A) True 
 B)False

Question 20

Calculate the Total Assets if the company has: Cash $400, Accounts Receivable $200, Accounts Payable $500, Equipment $300.
$ ________

Accepted Answer

($900 = $4

Exam 1: Accounting Concepts and Procedures

Calculate the Total Liabilities if the company has: Assets totaling $600 and Capital of $450. $ ________

Which of the following will decrease Owner's Equity?

The accounting equation states that total Assets must always equal total Liabilities plus Owner's Equity.

Revenues should be recorded when:

What is the difference between Bookkeeping and Accounting?

Which financial statement is prepared last?

Generally Accepted Accounting Principles are the procedures and guidelines that must be followed every other year.

Which of the following is NOT an Asset?

The income statement is a financial statement showing the change in owners' equity.

If Ol' Fashioned Toys' Revenues are less than its Expenses during the accounting period:

Crystal Clear Imagery received and paid a utility bill for $600 for the month of November. This transaction will:

If the Assets owned by a business total $59,000, Owner's Equity must also total $59,000.

Mick's Mart collects $100 of its accounts receivable. The expanded accounting equation impact is:

If a company's Revenues are higher than its Expenses, it will cause:

Go Big Red Retail Store collected $16,000 of its accounts receivable. The expanded accounting equation changes include:

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

If the Liabilities owed by a business total $150,000, then the Assets must also total $150,000.

Calculate the Total Assets if the company has: Cash $400, Accounts Receivable $200, Accounts Payable $500, Equipment $300. $ ________

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters