Question 1

Bet Mahoney, the owner of Bistro Rocca Restaurant, withdrew cash from the business for personal use. The withdrawal

Accepted Answer

A)  increases assets and owner's equity. 
B)  increases expenses. 
C)  increases revenue. 
D)  decreases owner's equity. 
A)  increases assets and owner's equity. 
B)  increases expenses. 
C)  increases revenue. 
D)  decreases owner's equity. D

Question 2

The purchase of supplies on credit increases total assets and total liabilities.

Accepted Answer

A) True 
 B)False  True

Question 3

Capital is

Accepted Answer

A)  an owner's permanent investment in the business. 
B)  equal to liabilities minus owner's equity. 
C)  equal to assets minus owner's equity. 
D)  equal to liabilities plus drawings. 
A)  an owner's permanent investment in the business. 
B)  equal to liabilities minus owner's equity. 
C)  equal to assets minus owner's equity. 
D)  equal to liabilities plus drawings. A

Question 4

If OPI Company's assets are $30,000 and its liabilities are $18,000, then the company's owner's equity is

Accepted Answer

A)  $12,000. 
B)  $30,000. 
C)  $18,000. 
D)  $48,000. 
A)  $12,000. 
B)  $30,000. 
C)  $18,000. 
D)  $48,000.

Question 5

Rights or claims against resources by creditors are

Accepted Answer

A)  assets. 
B)  liabilities. 
C)  owner's equity. 
D)  transactions. 
A)  assets. 
B)  liabilities. 
C)  owner's equity. 
D)  transactions.

Question 6

Which of the following accounts is not a liability?

Accepted Answer

A)  Sales Tax Payable 
B)  Accounts Payable 
C)  Accounts Receivable 
D)  Ultilities Payable 
A)  Sales Tax Payable 
B)  Accounts Payable 
C)  Accounts Receivable 
D)  Ultilities Payable

Question 7

Rights or claims against resources by owners are

Accepted Answer

A)  assets. 
B)  liabilities. 
C)  owner's equity. 
D)  transactions. 
A)  assets. 
B)  liabilities. 
C)  owner's equity. 
D)  transactions.

Question 8

A payment for which is an expense?

Accepted Answer

A)  both advertising and supplies 
B)  advertising but not supplies. 
C)  supplies but not advertising. 
D)  neither supplies nor advertising. 
A)  both advertising and supplies 
B)  advertising but not supplies. 
C)  supplies but not advertising. 
D)  neither supplies nor advertising.

Question 9

Mirah Company compiled the following financial information as of December 31, 2020: $\begin{array}{lr}
\text { Revenues } & \$ 340,000 \
\text { Owner's Capital }(1 / 1 / 20) & 140,000 \
\text { Equipment } & 80,000 \
\text { Expenses } & 240,000 \
\text { Cash } & 90,000 \
\text { Owner's Drawings } & 20,000 \
\text { Supplies } & 20,000 \
\text { Accounts payable } & 40,000 \
\text { Accounts receivable } & 70,000
\end{array}$ Mirah's owner's equity on December 31, 2020 is

Accepted Answer

A)  $100,000. 
B)  $140,000. 
C)  $220,000. 
D)  $260,000. 
A)  $100,000. 
B)  $140,000. 
C)  $220,000. 
D)  $260,000.

Question 10

Explain the difference between the basic accounting equation and the expanded accounting equation.

Accepted Answer

The basic accounting equation is: Assets

Question 11

If total liabilities decreased by $30,000 and owner's equity decreased by $15,000 during a period of time, then total assets must change by what amount and direction during that same period?

Accepted Answer

A)  $45,000 decrease 
B)  $15,000 decrease 
C)  $15,000 increase 
D)  $45,000 increase 
A)  $45,000 decrease 
B)  $15,000 decrease 
C)  $15,000 increase 
D)  $45,000 increase

Question 12

Classify each of these items as an asset (A), liability (L), or owner's equity (OE).

Accepted Answer

The answer of Classify each of these items as an...

Question 13

How many items does the the expanded accounting equation have?

Accepted Answer

A)  6. 
B)  5. 
C)  4. 
D)  3. 
A)  6. 
B)  5. 
C)  4. 
D)  3.

Question 14

As of December 31, 2020, Cancon Company has assets of $42,000 and owner's equity of $22,000. What are the liabilities for Cancon Company as of December 31, 2020?

Accepted Answer

A)  $22,000 
B)  $20,000 
C)  $42,000 
D)  $64,000 
A)  $22,000 
B)  $20,000 
C)  $42,000 
D)  $64,000

Question 15

Owner's equity is best depicted by the following:

Accepted Answer

A)  Assets = Liabilities. 
B)  Liabilities + Assets. 
C)  Residual equity + Assets. 
D)  Assets - Liabilities. 
A)  Assets = Liabilities. 
B)  Liabilities + Assets. 
C)  Residual equity + Assets. 
D)  Assets - Liabilities.

Question 16

The basic accounting equation states that Assets = Liabilities.

Accepted Answer

A) True 
 B)False

Question 17

Ben's Discorama has an increase in an expense. This means the following must also occur:

Accepted Answer

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

Question 18

The purchase of equipment for cash

Accepted Answer

A)  decreases total assets. 
B)  increases total liabilities. 
C)  increases total assets. 
D)  has no effect on total assets. 
A)  decreases total assets. 
B)  increases total liabilities. 
C)  increases total assets. 
D)  has no effect on total assets.

Question 19

_________________ are the gross increase in owner's equity resulting from business activities entered into for the purpose of earning income.

Accepted Answer

The answer of _________________ are the gross increase in owner's...

Question 20

Accepted Answer

1. Asset (A)
2. Owne

Bet Mahoney, the owner of Bistro Rocca Restaurant, withdrew cash from the business for personal use. The withdrawal

The purchase of supplies on credit increases total assets and total liabilities.

Capital is

If OPI Company's assets are $30,000 and its liabilities are $18,000, then the company's owner's equity is

Rights or claims against resources by creditors are

Which of the following accounts is not a liability?

Rights or claims against resources by owners are

A payment for which is an expense?

Explain the difference between the basic accounting equation and the expanded accounting equation.

If total liabilities decreased by $30,000 and owner's equity decreased by $15,000 during a period of time, then total assets must change by what amount and direction during that same period?

Classify each of these items as an asset (A), liability (L), or owner's equity (OE).

How many items does the the expanded accounting equation have?

As of December 31, 2020, Cancon Company has assets of $42,000 and owner's equity of $22,000. What are the liabilities for Cancon Company as of December 31, 2020?

Owner's equity is best depicted by the following:

The basic accounting equation states that Assets = Liabilities.

Ben's Discorama has an increase in an expense. This means the following must also occur:

The purchase of equipment for cash

_________________ are the gross increase in owner's equity resulting from business activities entered into for the purpose of earning income.

Welcome to Accounting

The Recording Process: Debits and Credits

The Recording Process: the Journal, the Ledger, and the Trial Balance

Adjusting the Accounts and Preparing an Adjusted Trial Balance

Completing a Worksheet and Completing the Accounting Cycle

Merchandising Companies: Purchases Perpetual

Merchandising Companies: Sales Perpetual

Merchandising Companies: Worksheets and Financial Statements Perpetual

Special Journals

Inventory

Cash, Banking, and Internal Controls

Payroll Accounting: Employee Taxes and Records

Payroll Accounting: Employer Taxes and Records

Filters

Exam 2: The Accounting Equation and Transaction Analysis

Bet Mahoney, the owner of Bistro Rocca Restaurant, withdrew cash from the business for personal use. The withdrawal

The purchase of supplies on credit increases total assets and total liabilities.

Capital is

If OPI Company's assets are $30,000 and its liabilities are $18,000, then the company's owner's equity is

Rights or claims against resources by creditors are

Which of the following accounts is not a liability?

Rights or claims against resources by owners are

A payment for which is an expense?

Explain the difference between the basic accounting equation and the expanded accounting equation.

If total liabilities decreased by $30,000 and owner's equity decreased by $15,000 during a period of time, then total assets must change by what amount and direction during that same period?

Classify each of these items as an asset (A), liability (L), or owner's equity (OE).

How many items does the the expanded accounting equation have?

As of December 31, 2020, Cancon Company has assets of $42,000 and owner's equity of $22,000. What are the liabilities for Cancon Company as of December 31, 2020?

Owner's equity is best depicted by the following:

The basic accounting equation states that Assets = Liabilities.

Ben's Discorama has an increase in an expense. This means the following must also occur:

The purchase of equipment for cash

_________________ are the gross increase in owner's equity resulting from business activities entered into for the purpose of earning income.

Welcome to Accounting

The Recording Process: Debits and Credits

The Recording Process: the Journal, the Ledger, and the Trial Balance

Adjusting the Accounts and Preparing an Adjusted Trial Balance

Completing a Worksheet and Completing the Accounting Cycle

Merchandising Companies: Purchases Perpetual

Merchandising Companies: Sales Perpetual

Merchandising Companies: Worksheets and Financial Statements Perpetual

Special Journals

Inventory

Cash, Banking, and Internal Controls

Payroll Accounting: Employee Taxes and Records

Payroll Accounting: Employer Taxes and Records

Filters