Question 1

The financial statement that is prepared first is:

Accepted Answer

A) the balance sheet. 
B) up to the accountant. 
C) the income statement. 
D) the statement of owner's equity. 
A) the balance sheet. 
B) up to the accountant. 
C) the income statement. 
D) the statement of owner's equity.

Question 2

At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $11,350; Prepaid Insurance, $400; Equipment, $26,200 and Cash, $21,650. On the same date, SloMo owed the following creditors: Simpson Supply Company, $17,000; Allen Office Equipment, $14,500.
The total assets for the SloMo Delivery Service are:

Accepted Answer

A) $59,600. 
B) $21,650. 
C) $33,400. 
D) $33,000. 
A) $59,600. 
B) $21,650. 
C) $33,400. 
D) $33,000.

Question 3

When revenue and expenses are equal, the firm is said to ________.

Accepted Answer

The answer of When revenue and expenses are equal, the...

Question 4

The ________ is the financial report that shows the assets, liabilities, and owner's equity of a business on a specific date.

Accepted Answer

The answer of The ________ is the financial report that...

Question 5

On December 1, 2019, Geneva Jordan opened her new business with the following assets and liabilities. Complete the accounting equation for the firm.
 $\begin{array}{|l|r|l|r|}
\hline \text { Accounts Payable } & \$ 2,100 & \text { Prepaid Rent } & \$ 7,000 \
\hline \text { Cash } & 3,750 & \text { Loans Payable } & 15,000 \
\hline \text { Equipment } & 26,200 & \text { Supplies } & 1,900 \
\hline
\end{array}$ 
Assets $________ = Liabilities $________ + Owner's Equity $________

Accepted Answer

Assets $38,850 = Lia

Question 6

Revenue by definition is:

Accepted Answer

A) the collection of amounts owed by customers. 
B) an amount a business must pay in the future. 
C) the payment of amounts owed to creditors. 
D) amounts earned from the sale of goods or services. 
A) the collection of amounts owed by customers. 
B) an amount a business must pay in the future. 
C) the payment of amounts owed to creditors. 
D) amounts earned from the sale of goods or services.

Question 7

The amount of net income or net loss is needed to complete the statement of owner's equity.

Accepted Answer

A) True 
 B)False

Question 8

In a business transaction, when expenses increase, owner's equity will ________.

Accepted Answer

The answer of In a business transaction, when expenses increase,...

Question 9

A double line drawn under the figures in a money column shows that the computation is complete.

Accepted Answer

A) True 
 B)False

Question 10

Identify the type of accounts that would appear on a firm's income statement

Accepted Answer

A) liabilities and expenses. 
B) assets and revenues. 
C) assets and liabilities. 
D) revenues and expenses. 
A) liabilities and expenses. 
B) assets and revenues. 
C) assets and liabilities. 
D) revenues and expenses.

Question 11

On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:
$$\begin{array} { | l | l | } 
\hline \text { Cash } & \text { Accounts Payable } \
\hline \text { Accounts Receivable } & \text { Shawn Dahl, Capital } \
\hline \text { Office Equipment } & \text { Revenue } \
\hline \text { Canoe and Kayak Equipment } & \text { Expenses } \
\hline
\end{array}$$
Transactions
1.	Shawn Dahl invested $50,000 in cash to open the business
2.	Paid $14,200 in cash for the purchase of kayak and canoe equipment
3.	Paid $2,200 in cash for rent expense
4.	Purchased additional kayak and canoe equipment for $4,900 on credit
5.	Received $4,600 in cash for kayak rentals
6.	Rented canoes and kayaks for $3,400 on account
7.	Purchased office equipment for $375 in cash
8.	Received $1,350 in cash from credit clients
9.	Shawn Dahl withdrew $1,800 in cash for personal expenses

-Based on the information shown above, what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?

Accepted Answer

The balance of Accou

Question 12

The Income Statement shows:

Accepted Answer

A) the financial position of a business at a given time. 
B) the change in owner's equity for a period of time. 
C) the amount of net income or net loss. 
D) assets, liabilities and expenses. 
A) the financial position of a business at a given time. 
B) the change in owner's equity for a period of time. 
C) the amount of net income or net loss. 
D) assets, liabilities and expenses.

Question 13

The net income or net loss for the period is shown on both the income statement and the balance sheet.

Accepted Answer

A) True 
 B)False

Question 14

The property that a business owns is referred to as its ________.

Accepted Answer

The answer of The property that a business owns is...

Question 15

If during the year total assets increase by $75,000 and total liabilities decrease by $16,000, by how much did owner's equity increase/decrease?

Accepted Answer

A) $59,000 decrease 
B) $75,000 increase 
C) $91,000 increase 
D) $91,000 decrease 
A) $59,000 decrease 
B) $75,000 increase 
C) $91,000 increase 
D) $91,000 decrease

Question 16

When the owner invests equipment in a business,

Accepted Answer

A) assets and owner's equity increase. 
B) assets and revenue increase. 
C) liabilities decrease and owner's equity increases. 
D) assets increase and owner's equity decreases. 
A) assets and owner's equity increase. 
B) assets and revenue increase. 
C) liabilities decrease and owner's equity increases. 
D) assets increase and owner's equity decreases.

Question 17

If assets are $17,000 and owner's equity is $10,000, liabilities are ________.

Accepted Answer

The answer of If assets are $17,000 and owner's equity...

Question 18

The following information should be used for questions.
The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.
$\begin{array}{|l|l|}
\hline \text { Cash } & \text { K. Mitchell, Capital } \
\hline \text { Accounts Receivable } & \text { Revenue } \
\hline \text { Equipment } & \text { Expenses } \
\hline \text { Accounts Payable } & \
\hline
\end{array}$
-Issued checks to pay salaries

Accepted Answer

plus Expen

Question 19

Al Dunn Bakery bought a new oven for $1,380. Al paid $300 as a cash down payment and will pay the balance in 30 days. Total assets increased by $1,080.

Accepted Answer

A) True 
 B)False

Question 20

The following information should be used for questions.
The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.
$\begin{array}{|l|l|}
\hline \text { Cash } & \text { K. Mitchell, Capital } \
\hline \text { Accounts Receivable } & \text { Revenue } \
\hline \text { Equipment } & \text { Expenses } \
\hline \text { Accounts Payable } & \
\hline
\end{array}$
-Performed services for cash

Accepted Answer

plus Cash;

Exam 2: Analyzing Business Transactions

The financial statement that is prepared first is:

When revenue and expenses are equal, the firm is said to ________.

The ________ is the financial report that shows the assets, liabilities, and owner's equity of a business on a specific date.

Revenue by definition is:

The amount of net income or net loss is needed to complete the statement of owner's equity.

In a business transaction, when expenses increase, owner's equity will ________.

A double line drawn under the figures in a money column shows that the computation is complete.

Identify the type of accounts that would appear on a firm's income statement

The Income Statement shows:

The net income or net loss for the period is shown on both the income statement and the balance sheet.

The property that a business owns is referred to as its ________.

If during the year total assets increase by $75,000 and total liabilities decrease by $16,000, by how much did owner's equity increase/decrease?

When the owner invests equipment in a business,

If assets are $17,000 and owner's equity is $10,000, liabilities are ________.

Al Dunn Bakery bought a new oven for $1,380. Al paid $300 as a cash down payment and will pay the balance in 30 days. Total assets increased by $1,080.

Accounting: The Language of Business

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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