Question 1

Which of the following decreases stockholders' equity?

Accepted Answer

A)  Purchasing equipment for cash 
B)  Paying monthly rent in cash 
C)  Issuing shares of stock 
D)  Paying cash to settle an account payable 
E)  None of the above 
A)  Purchasing equipment for cash 
B)  Paying monthly rent in cash 
C)  Issuing shares of stock 
D)  Paying cash to settle an account payable 
E)  None of the above

Question 2

Rodwell Company had $14,230 of accounts payable on September 1 and $12,760 on September 30. During September, the company paid total cash of $13,275 on accounts payable.
Determine the total purchases on account during September.

Accepted Answer

A)  $11,805 
B)  $14,745 
C)  $13,715 
D)  $40,265 
A)  $11,805 
B)  $14,745 
C)  $13,715 
D)  $40,265

Question 3

If Howard, Inc. purchased equipment on credit from Roan Company, then the transaction recorded by Howard would include an increase in a liability and an increase in asset.

Accepted Answer

A) True 
 B)False

Question 4

Why would a company want to have a fiscal year-end that does not match the calendar year-end?

Accepted Answer

A company might set a fiscal year-end th

Question 5

Ludlow Company's Accounts Receivable account had a balance of $7,500 on November 1, and a balance of $10,700 on November 30. During November the company received cash of $19,700 from credit customers.
Determine the amount of sales on account that occurred in November?

Accepted Answer

A)  $26,400 
B)  $13,000 
C)  $22,900 
D)  $20,500 
A)  $26,400 
B)  $13,000 
C)  $22,900 
D)  $20,500

Question 6

Recording a stock issuance in exchange for cash involves:

Accepted Answer

A)  Increasing Cash and increasing Notes Payable 
B)  Increasing Cash and increasing Dividends 
C)  Increasing Cash and increasing Common Stock 
D)  Decreasing Common Stock and decreasing Cash 
E)  None of the above 
A)  Increasing Cash and increasing Notes Payable 
B)  Increasing Cash and increasing Dividends 
C)  Increasing Cash and increasing Common Stock 
D)  Decreasing Common Stock and decreasing Cash 
E)  None of the above

Question 7

Cash collected on accounts receivable would produce what effect on the balance sheet?

Accepted Answer

A)  Increase liabilities and decrease equity 
B)  Decrease liabilities and increase equity 
C)  Increase assets and decrease assets 
D)  Decrease assets and decrease liabilities 
A)  Increase liabilities and decrease equity 
B)  Decrease liabilities and increase equity 
C)  Increase assets and decrease assets 
D)  Decrease assets and decrease liabilities

Question 8

The accounting equation for Ellie Enterprises is as follows:
 
 If the company now purchases office equipment on account for $10,000, the accounting equation will change to:

Accepted Answer

The answer of The accounting equation for Ellie Enterprises is...

Question 9

An account is an individual record of increases and decreases in a specific asset, liability, or stockholders' equity item.

Accepted Answer

A) True 
 B)False

Question 10

The first two steps of the accounting cycle, in proper sequence, are:

Accepted Answer

A)  Record transactions in a journal and prepare a trial balance. 
B)  Analyze transactions from source documents and post journal entries to general ledger accounts. 
C)  Analyze transactions from source documents and record transactions in a journal. 
D)  Record transactions in a journal and post journal entries to general ledger accounts. 
E)  None of the above 
A)  Record transactions in a journal and prepare a trial balance. 
B)  Analyze transactions from source documents and post journal entries to general ledger accounts. 
C)  Analyze transactions from source documents and record transactions in a journal. 
D)  Record transactions in a journal and post journal entries to general ledger accounts. 
E)  None of the above

Question 11

Which of the following increases stockholders' equity?

Accepted Answer

A)  Providing services to clients with payment received immediately 
B)  Purchasing supplies for cash 
C)  Receiving payment in advance from a client for service to be performed in the future 
D)  Collecting an amount owed by a client on account 
E)  None of the above 
A)  Providing services to clients with payment received immediately 
B)  Purchasing supplies for cash 
C)  Receiving payment in advance from a client for service to be performed in the future 
D)  Collecting an amount owed by a client on account 
E)  None of the above

Question 12

The first step in the accounting cycle is to analyze transactions from source documents.

Accepted Answer

A) True 
 B)False

Question 13

If the beginning Cash account balance was $18,400, the ending balance was $10,200, and total cash received during the period was $44,000, what amount of cash was paid out during the period?

Accepted Answer

A)  $52,200 
B)  $35,800 
C)  $ 1,800 
D)  $42,400 
E)  None of the above 
A)  $52,200 
B)  $35,800 
C)  $ 1,800 
D)  $42,400 
E)  None of the above

Question 14

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases
-Paid rent for the current month

Accepted Answer

A)  Increase an asset 
B)  Decrease an asset 
C)  Decrease a liability 
D)  Increase a liability 
E)  Decrease common stock
F) Increase common stock
G) Increase dividends
H) Decease dividends
I) Decrease revenue
J) Increase revenue
K) Increase expense
L) Decrease expense 
A)  Increase an asset 
B)  Decrease an asset 
C)  Decrease a liability 
D)  Increase a liability 
E)  Decrease common stock
F) Increase common stock
G) Increase dividends
H) Decease dividends
I) Decrease revenue
J) Increase revenue
K) Increase expense
L) Decrease expense

Question 15

United Delivery, Inc. began business on June 1. Prepare a horizontal worksheet with the following column headings: Cash; Accounts Receivable; Prepaid Rent; Supplies; Delivery Equipment; Accounts Payable; Unearned Delivery Fees; Common Stock; Dividends; Delivery Fees Earned; Salaries Expense; and Rent Expense. Show how the June transactions affect the accounting equation. Total all columns to show that assets equal liabilities plus stockholders' equity.

Accepted Answer

The answer of United Delivery, Inc. began business on June...

Question 16

Which of the following does not affect stockholders' equity?

Accepted Answer

A)  Paying wages to employees 
B)  Receiving an investment of cash from an owner 
C)  Selling goods to customers with payment due in 30 days 
D)  Purchasing equipment with payment due in 30 days 
E)  None of the above 
A)  Paying wages to employees 
B)  Receiving an investment of cash from an owner 
C)  Selling goods to customers with payment due in 30 days 
D)  Purchasing equipment with payment due in 30 days 
E)  None of the above

Question 17

A company's fiscal year may:

Accepted Answer

A)  Be any portion of a year including a month or quarter 
B)  Be for a period either greater or less than 12 months 
C)  Be the same as the calendar year 
D)  All of the above are true of a company's fiscal year 
A)  Be any portion of a year including a month or quarter 
B)  Be for a period either greater or less than 12 months 
C)  Be the same as the calendar year 
D)  All of the above are true of a company's fiscal year

Question 18

Under the double-entry accounting system, no more than two accounts can be affected by each transaction.

Accepted Answer

A) True 
 B)False

Question 19

When money is borrowed, both an asset account and a revenue account are increased.

Accepted Answer

A) True 
 B)False

Question 20

The declaration and payment of a dividend by a corporation causes:

Accepted Answer

A)  A decrease in assets and a decrease in liabilities. 
B)  A decrease in assets and a decrease in retained earnings 
C)  A decrease in assets and a decrease in common stock 
D)  A decrease in assets and an increase in retained earnings 
E)  None of the above 
A)  A decrease in assets and a decrease in liabilities. 
B)  A decrease in assets and a decrease in retained earnings 
C)  A decrease in assets and a decrease in common stock 
D)  A decrease in assets and an increase in retained earnings 
E)  None of the above

Which of the following decreases stockholders' equity?

Rodwell Company had $14,230 of accounts payable on September 1 and $12,760 on September 30. During September, the company paid total cash of $13,275 on accounts payable. Determine the total purchases on account during September.

If Howard, Inc. purchased equipment on credit from Roan Company, then the transaction recorded by Howard would include an increase in a liability and an increase in asset.

Why would a company want to have a fiscal year-end that does not match the calendar year-end?

Ludlow Company's Accounts Receivable account had a balance of $7,500 on November 1, and a balance of $10,700 on November 30. During November the company received cash of $19,700 from credit customers. Determine the amount of sales on account that occurred in November?

Recording a stock issuance in exchange for cash involves:

Cash collected on accounts receivable would produce what effect on the balance sheet?

The accounting equation for Ellie Enterprises is as follows: If the company now purchases office equipment on account for $10,000, the accounting equation will change to:

An account is an individual record of increases and decreases in a specific asset, liability, or stockholders' equity item.

The first two steps of the accounting cycle, in proper sequence, are:

Which of the following increases stockholders' equity?

The first step in the accounting cycle is to analyze transactions from source documents.

If the beginning Cash account balance was $18,400, the ending balance was $10,200, and total cash received during the period was $44,000, what amount of cash was paid out during the period?

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases -Paid rent for the current month

Which of the following does not affect stockholders' equity?

A company's fiscal year may:

Under the double-entry accounting system, no more than two accounts can be affected by each transaction.

When money is borrowed, both an asset account and a revenue account are increased.

The declaration and payment of a dividend by a corporation causes:

Financial Accounting and Business Decisions

Accrual Basis of Accounting

Understanding Accounting Information

Internal Control and Cash

Receivables

Inventory

Property, Plant and Equipment and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Appendix A: The Language of Accountants: Debits and Credits

Appendix B: Accounting for Investments and Consolidated Financial Statements

Appendix C: Accounting and the Time Value of Money

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Exam 2: Processing Accounting Information

Which of the following decreases stockholders' equity?

Rodwell Company had $14,230 of accounts payable on September 1 and $12,760 on September 30. During September, the company paid total cash of $13,275 on accounts payable. Determine the total purchases on account during September.

If Howard, Inc. purchased equipment on credit from Roan Company, then the transaction recorded by Howard would include an increase in a liability and an increase in asset.

Why would a company want to have a fiscal year-end that does not match the calendar year-end?

Ludlow Company's Accounts Receivable account had a balance of $7,500 on November 1, and a balance of $10,700 on November 30. During November the company received cash of $19,700 from credit customers. Determine the amount of sales on account that occurred in November?

Recording a stock issuance in exchange for cash involves:

Cash collected on accounts receivable would produce what effect on the balance sheet?

The accounting equation for Ellie Enterprises is as follows: If the company now purchases office equipment on account for $10,000, the accounting equation will change to:

An account is an individual record of increases and decreases in a specific asset, liability, or stockholders' equity item.

The first two steps of the accounting cycle, in proper sequence, are:

Which of the following increases stockholders' equity?

The first step in the accounting cycle is to analyze transactions from source documents.

If the beginning Cash account balance was $18,400, the ending balance was $10,200, and total cash received during the period was $44,000, what amount of cash was paid out during the period?

Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases -Paid rent for the current month

Which of the following does not affect stockholders' equity?

A company's fiscal year may:

Under the double-entry accounting system, no more than two accounts can be affected by each transaction.

When money is borrowed, both an asset account and a revenue account are increased.

The declaration and payment of a dividend by a corporation causes:

Financial Accounting and Business Decisions

Accrual Basis of Accounting

Understanding Accounting Information

Internal Control and Cash

Receivables

Inventory

Property, Plant and Equipment and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Appendix A: The Language of Accountants: Debits and Credits

Appendix B: Accounting for Investments and Consolidated Financial Statements

Appendix C: Accounting and the Time Value of Money

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