Question 1

An ______________ is a record of increases and decreases in specific asset, liability, or owner's equity items.

Accepted Answer

The answer of An ______________ is a record of increases...

Question 2

Which of the following items increases owner's equity?

Accepted Answer

A)  Revenues and expenses 
B)  Investments by owners and revenues 
C)  Drawings and expense 
D)  Investments by owners and drawings 
A)  Revenues and expenses 
B)  Investments by owners and revenues 
C)  Drawings and expense 
D)  Investments by owners and drawings

Question 3

_______________ are a withdrawal of cash or other assets for personal use.

Accepted Answer

The answer of _______________ are a withdrawal of cash or...

Question 4

Which of the following is an internal transaction?

Accepted Answer

A)  Purchase of supplies 
B)  Use of supplies to help perform services 
C)  Response to emails 
D)  Payment of an account payable 
A)  Purchase of supplies 
B)  Use of supplies to help perform services 
C)  Response to emails 
D)  Payment of an account payable

Question 5

Identify the impact on the accounting equation of each of the following transactions.
1. Purchase office supplies on account.
2. Paid secretary weekly salary.
3. Purchased office furniture for cash.
4. Received monthly utility bill to

Accepted Answer

1. Increase assets and increas

Question 6

Liabilities of a company are owed to

Accepted Answer

A)  debtors. 
B)  benefactors. 
C)  creditors. 
D)  underwriters. 
A)  debtors. 
B)  benefactors. 
C)  creditors. 
D)  underwriters.

Question 7

Meile Company purchases $500 of supplies from Best Supply Company on credit. The effect on the basic accounting equation of Meile Company is

Accepted Answer

A)  an increase in assets and an increase in liabilities. 
B)  a decrease in assets and a decrease in liabilities. 
C)  no change in total assets. 
D)  an increase in assets and a decrease in liabilities. 
A)  an increase in assets and an increase in liabilities. 
B)  a decrease in assets and a decrease in liabilities. 
C)  no change in total assets. 
D)  an increase in assets and a decrease in liabilities.

Question 8

Which one of the following items decreases owner's equity?

Accepted Answer

A)  Revenues 
B)  Investments by owners 
C)  Drawings 
D)  Purchase of equipment 
A)  Revenues 
B)  Investments by owners 
C)  Drawings 
D)  Purchase of equipment

Question 9

Odom Company compiled the following financial information as of December 31, 2020: $\begin{array}{lr}
\text { Revenues } & \$ 840,000 \
\text { Owner's Capital }(1 / 1 / 20) & 170,000 \
\text { Equipment } & 330,000 \
\text { Expenses } & 740,000 \
\text { Cash } & 40,000 \
\text { Owner's Drawings } & 50,000 \
\text { Supplies } & 20,000 \
\text { Sales Tax Payable } & 10,000 \
\text { Accounts payable } & 50,000 \
\text { Notes payable } & 200,000 \
\text { Accounts receivable } & 90,000
\end{array}$ Odom's liabilities on December 31, 2020 are

Accepted Answer

A)  $60,000. 
B)  $260,000. 
C)  $300,000. d $450,000. 
A)  $60,000. 
B)  $260,000. 
C)  $300,000. d $450,000.

Question 10

Liabilities

Accepted Answer

A)  are future economic benefits. 
B)  are existing debts and obligations. 
C)  possess service potential. 
D)  are things of value used by the business in its operation. 
A)  are future economic benefits. 
B)  are existing debts and obligations. 
C)  possess service potential. 
D)  are things of value used by the business in its operation.

Question 11

If an owner makes a withdrawal of cash, then

Accepted Answer

A)  there has been a violation of accounting principles. 
B)  owner's equity will increase. 
C)  owner's equity will decrease. 
D)  there will be a new liability showing the owner owes money to the business. 
A)  there has been a violation of accounting principles. 
B)  owner's equity will increase. 
C)  owner's equity will decrease. 
D)  there will be a new liability showing the owner owes money to the business.

Question 12

Blue Ridge Company has assets of $22,000 and liabilities of $16,000. Owner's equity is

Accepted Answer

A)  $8,000. 
B)  $38,000. 
C)  $6,000. 
D)  $22,000. 
A)  $8,000. 
B)  $38,000. 
C)  $6,000. 
D)  $22,000.

Question 13

If total liabilities decreased by $60,000 and owner's equity increased by $30,000 during a period of time, then total assets must change by what amount and direction during that same period?

Accepted Answer

A)  $90,000 decrease 
B)  $30,000 decrease 
C)  $30,000 increase 
D)  $90,000 increase 
A)  $90,000 decrease 
B)  $30,000 decrease 
C)  $30,000 increase 
D)  $90,000 increase

Question 14

If expenses are paid in cash, then

Accepted Answer

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

Question 15

Wyatt's Musclerama collected cash on account from customers. The accounts receivable were originally recorded last month. The collection of the accounts

Accepted Answer

A)  increases revenues. 
B)  decreases revenues. 
C)  has no effect on revenues. 
D)  increases owner's equity. 
A)  increases revenues. 
B)  decreases revenues. 
C)  has no effect on revenues. 
D)  increases owner's equity.

Question 16

The following transactions represent part of the activities of Back Bay Tea Company for the first month of its existence. Indicate the effect of each transaction upon the total assets of the business by one of the following phrases: increased total assets, decreased total assets, or no change in total assets.
(a) The owner invested cash to start the business.
(b) Purchased a computer for cash.
(c) Purchased office equipment with money borrowed from the bank.
(d) Paid the first month's utility bill.
(e) Collected an accounts receivable.
(f) Owner withdrew cash from the business.

Accepted Answer

(a) Increased total assets.
(b

Question 17

AJ's Auto Repair Shop shows five transactions summarized below. The effect of each transaction on the accounting equation is shown, and also the new balance of each item in the equation. For each transaction (a) to (e) write an explanation of the nature of the transaction.

Accepted Answer

(a) Withdrew cash from business.
(b) Rec

Question 18

Match the items below by entering the appropriate code letter in the space provided.

Accepted Answer

The answer of Match the items below by entering the...

Question 19

If Beringer Company's liabilities are $18,000 and its owner's equity is $12,000, the company's assets total

Accepted Answer

A)  $6,000. 
B)  $30,000. 
C)  $18,000. 
D)  $12,000. 
A)  $6,000. 
B)  $30,000. 
C)  $18,000. 
D)  $12,000.

Question 20

As of June 30, 2020, Little Giantz Company has assets of $100,000 and owner's equity of $60,000. What are the liabilities for Little Giantz Company as of June 30, 2020?

Accepted Answer

A)  $40,000 
B)  $60,000 
C)  $100,000 
D)  $160,000 
A)  $40,000 
B)  $60,000 
C)  $100,000 
D)  $160,000

An ______________ is a record of increases and decreases in specific asset, liability, or owner's equity items.

Which of the following items increases owner's equity?

_______________ are a withdrawal of cash or other assets for personal use.

Which of the following is an internal transaction?

Identify the impact on the accounting equation of each of the following transactions. 1. Purchase office supplies on account. 2. Paid secretary weekly salary. 3. Purchased office furniture for cash. 4. Received monthly utility bill to

Liabilities of a company are owed to

Meile Company purchases $500 of supplies from Best Supply Company on credit. The effect on the basic accounting equation of Meile Company is

Which one of the following items decreases owner's equity?

Liabilities

If an owner makes a withdrawal of cash, then

Blue Ridge Company has assets of $22,000 and liabilities of $16,000. Owner's equity is

If total liabilities decreased by $60,000 and owner's equity increased by $30,000 during a period of time, then total assets must change by what amount and direction during that same period?

If expenses are paid in cash, then

Wyatt's Musclerama collected cash on account from customers. The accounts receivable were originally recorded last month. The collection of the accounts

AJ's Auto Repair Shop shows five transactions summarized below. The effect of each transaction on the accounting equation is shown, and also the new balance of each item in the equation. For each transaction (a) to (e) write an explanation of the nature of the transaction.

Match the items below by entering the appropriate code letter in the space provided.

If Beringer Company's liabilities are $18,000 and its owner's equity is $12,000, the company's assets total

As of June 30, 2020, Little Giantz Company has assets of $100,000 and owner's equity of $60,000. What are the liabilities for Little Giantz Company as of June 30, 2020?

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

An ______________ is a record of increases and decreases in specific asset, liability, or owner's equity items.

Which of the following items increases owner's equity?

_______________ are a withdrawal of cash or other assets for personal use.

Which of the following is an internal transaction?

Identify the impact on the accounting equation of each of the following transactions. 1. Purchase office supplies on account. 2. Paid secretary weekly salary. 3. Purchased office furniture for cash. 4. Received monthly utility bill to

Liabilities of a company are owed to

Meile Company purchases $500 of supplies from Best Supply Company on credit. The effect on the basic accounting equation of Meile Company is

Which one of the following items decreases owner's equity?

Liabilities

If an owner makes a withdrawal of cash, then

Blue Ridge Company has assets of $22,000 and liabilities of $16,000. Owner's equity is

If total liabilities decreased by $60,000 and owner's equity increased by $30,000 during a period of time, then total assets must change by what amount and direction during that same period?

If expenses are paid in cash, then

Wyatt's Musclerama collected cash on account from customers. The accounts receivable were originally recorded last month. The collection of the accounts

AJ's Auto Repair Shop shows five transactions summarized below. The effect of each transaction on the accounting equation is shown, and also the new balance of each item in the equation. For each transaction (a) to (e) write an explanation of the nature of the transaction.

Match the items below by entering the appropriate code letter in the space provided.

If Beringer Company's liabilities are $18,000 and its owner's equity is $12,000, the company's assets total

As of June 30, 2020, Little Giantz Company has assets of $100,000 and owner's equity of $60,000. What are the liabilities for Little Giantz Company as of June 30, 2020?

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