Question 1

The financial statement that shows business results in terms of Revenue and Expenses is:

Accepted Answer

A)  Customer Statement. 
B)  a balance sheet. 
C)  a statement of Owner's Equity. 
D)  None of the above. 
A)  Customer Statement. 
B)  a balance sheet. 
C)  a statement of Owner's Equity. 
D)  None of the above.

Question 2

Which accounts are affected when the company buys a truck for cash?

Accepted Answer

A)  Assets and Revenue 
B)  Liabilities and Capital 
C)  Capital and Liabilities 
D)  None of the above is correct. 
A)  Assets and Revenue 
B)  Liabilities and Capital 
C)  Capital and Liabilities 
D)  None of the above is correct.

Question 3

A sole proprietorship ends with the death of the owner.

Accepted Answer

A) True 
 B)False

Question 4

Pat purchased $8,000 of new electronic equipment for her BJ Company on open account. The effect on the basic accounting equation was to:

Accepted Answer

A)  increase Cash $8,000 and increase Equipment $8,000. 
B)  increase Equipment $8,000 and increase Accounts Payable $8,000. 
C)  decrease Cash $8,000 and increase Accounts Payable $8,000. 
D)  decrease Cash $8,000 and increase Equipment $8,000. 
A)  increase Cash $8,000 and increase Equipment $8,000. 
B)  increase Equipment $8,000 and increase Accounts Payable $8,000. 
C)  decrease Cash $8,000 and increase Accounts Payable $8,000. 
D)  decrease Cash $8,000 and increase Equipment $8,000.

Question 5

Accounting provides information to:

Accepted Answer

A)  investors. 
B)  government. 
C)  managers. 
D)  All of these answers are correct. 
A)  investors. 
B)  government. 
C)  managers. 
D)  All of these answers are correct.

Question 6

If Total Assets are $68,000 and Total Capital is $30,000, Liabilities must equal:

Accepted Answer

A)  $38,000. 
B)  $30,000. 
C)  $98,000. 
D)  $68,000. 
A)  $38,000. 
B)  $30,000. 
C)  $98,000. 
D)  $68,000.

Question 7

The statement of Owner's Equity shows the beginning and the ending capital balance.

Accepted Answer

A) True 
 B)False

Question 8

The basic accounting equation is:

Accepted Answer

A)  Assets = Revenues - Expenses. 
B)  Assets = Liabilities - Owner's Equity. 
C)  Profit = Revenues - Expenses. 
D)  Assets = Liabilities + Owner's Equity. 
A)  Assets = Revenues - Expenses. 
B)  Assets = Liabilities - Owner's Equity. 
C)  Profit = Revenues - Expenses. 
D)  Assets = Liabilities + Owner's Equity.

Question 9

The three elements that make up a balance sheet are Assets, Liabilities and Owner's Equity.

Accepted Answer

A) True 
 B)False

Question 10

A business received $10,000 from a customer in payment of an amount owed. The effect of the transaction on the accounting equation was to:

Accepted Answer

A)  increase one Asset, decrease another Asset. 
B)  increase an Asset, increase a Liability. 
C)  decrease an Asset, decrease a Liability. 
D)  increase an Asset, increase Owner's Equity. 
A)  increase one Asset, decrease another Asset. 
B)  increase an Asset, increase a Liability. 
C)  decrease an Asset, decrease a Liability. 
D)  increase an Asset, increase Owner's Equity.

Question 11

The income statement is completed before the statement of Owners' Equity.

Accepted Answer

A) True 
 B)False

Question 12

If Owner's Equity totals $73,000 and Liabilities total $40,000, then Assets owned by a business totals $113,000.

Accepted Answer

A) True 
 B)False

Question 13

Which account is NOT included in the asset section of the balance sheet?

Accepted Answer

A)  Supplies 
B)  Utility Expense 
C)  Land 
D)  Computer 
A)  Supplies 
B)  Utility Expense 
C)  Land 
D)  Computer

Question 14

The function of accounting includes analyzing, recording, classifying, summarizing, reporting, strategic management and environmental assessment.

Accepted Answer

A) True 
 B)False

Question 15

Bob purchased a new computer for the company for cash. The transaction will:

Accepted Answer

A)  increase Computer; increase Capital. 
B)  decrease Cash; increase Accounts Payable. 
C)  decrease Cash; increase Computer. 
D)  increase Supplies; increase Accounts Payable. 
A)  increase Computer; increase Capital. 
B)  decrease Cash; increase Accounts Payable. 
C)  decrease Cash; increase Computer. 
D)  increase Supplies; increase Accounts Payable.

Question 16

The right side of the accounting equation shows what is owed by the business.

Accepted Answer

A) True 
 B)False

Question 17

The statement of Owner's Equity is the link between the income statement and balance sheet.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following transactions affect Owner's Equity?

Accepted Answer

A)  Payment on account 
B)  Equipment purchase 
C)  Customer payment 
D)  A withdrawal 
A)  Payment on account 
B)  Equipment purchase 
C)  Customer payment 
D)  A withdrawal

Question 19

Eileen's Corner Shoppe purchases a desk for cash. This causes:

Accepted Answer

A)  Cash and Capital to increase. 
B)  Furniture and Cash to increase. 
C)  Furniture to increase and Cash to decrease. 
D)  Accounts Payable to increase and Capital to increase. 
A)  Cash and Capital to increase. 
B)  Furniture and Cash to increase. 
C)  Furniture to increase and Cash to decrease. 
D)  Accounts Payable to increase and Capital to increase.

Question 20

The four parts of Owner's Equity include capital, withdrawals, Revenues, and Expenses.

Accepted Answer

A) True 
 B)False

Exam 1: Accounting Concepts and Procedures

The financial statement that shows business results in terms of Revenue and Expenses is:

Which accounts are affected when the company buys a truck for cash?

A sole proprietorship ends with the death of the owner.

Pat purchased $8,000 of new electronic equipment for her BJ Company on open account. The effect on the basic accounting equation was to:

Accounting provides information to:

If Total Assets are $68,000 and Total Capital is $30,000, Liabilities must equal:

The statement of Owner's Equity shows the beginning and the ending capital balance.

The basic accounting equation is:

The three elements that make up a balance sheet are Assets, Liabilities and Owner's Equity.

A business received $10,000 from a customer in payment of an amount owed. The effect of the transaction on the accounting equation was to:

The income statement is completed before the statement of Owners' Equity.

If Owner's Equity totals $73,000 and Liabilities total $40,000, then Assets owned by a business totals $113,000.

Which account is NOT included in the asset section of the balance sheet?

The function of accounting includes analyzing, recording, classifying, summarizing, reporting, strategic management and environmental assessment.

Bob purchased a new computer for the company for cash. The transaction will:

The right side of the accounting equation shows what is owed by the business.

The statement of Owner's Equity is the link between the income statement and balance sheet.

Which of the following transactions affect Owner's Equity?

Eileen's Corner Shoppe purchases a desk for cash. This causes:

The four parts of Owner's Equity include capital, withdrawals, Revenues, and Expenses.

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

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