Question 1

Which of the following accounts are a standard component of stockholders' equity?

Accepted Answer

A) Prepaid Expenses 
B) Dividends 
C) Additional Paid In Stock 
D) Unearned Income 
A) Prepaid Expenses 
B) Dividends 
C) Additional Paid In Stock 
D) Unearned Income

Question 2

Which of the following transactions would increase total assets? I. Borrowed cash on a note payable, $80,000
II. Provided services on account, $10,000
III. Received cash from a customer as payment on account, $8,000
IV. Received a utility bill, $1,200

Accepted Answer

A) I and II 
B) I and III 
C) I, II, and III 
D) All of these answers are correct. 
A) I and II 
B) I and III 
C) I, II, and III 
D) All of these answers are correct.

Question 3

Cash dividends paid to the stockholders will:

Accepted Answer

A) increase assets and decrease liabilities. 
B) increase assets and increase liabilities. 
C) have no effect on stockholders' equity or revenues. 
D) decrease assets and decrease stockholders' equity. 
A) increase assets and decrease liabilities. 
B) increase assets and increase liabilities. 
C) have no effect on stockholders' equity or revenues. 
D) decrease assets and decrease stockholders' equity.

Question 4

Consider the following transactions: I. Owners invested $8,000 cash to begin the business
II. Provided services for cash, $6,000
III. Provided services on account, $4,000
IV. Paid cash for expenses, $7,500
How much net income did the business have?

Accepted Answer

A) $ 2,500 
B) $ 4,500 
C) $ 6,500 
D) $10,500 
A) $ 2,500 
B) $ 4,500 
C) $ 6,500 
D) $10,500

Question 5

A chart of accounts is organized in the alphabetical order of the accounting equation-with assets first, followed by expenses, liabilities, owners' equity, and revenues-because using numbers can be very complicated.

Accepted Answer

A) True 
 B)False

Question 6

When a business makes a sale on account, the asset created is a(n):

Accepted Answer

A) revenue. 
B) expense. 
C) account receivable. 
D) account payable. 
A) revenue. 
B) expense. 
C) account receivable. 
D) account payable.

Question 7

When a company performs a service and immediately collects the cash from the customer, which of the following would occur?

Accepted Answer

A) Stockholders' equity would decrease. 
B) Assets would decrease. 
C) Expenses would decrease. 
D) Net income would increase. 
A) Stockholders' equity would decrease. 
B) Assets would decrease. 
C) Expenses would decrease. 
D) Net income would increase.

Question 8

An owner makes an investment of cash into the business. This transaction would include a:

Accepted Answer

A) debit to Common Stock and a credit to Common Stock. 
B) debit to Cash and a credit to Common Stock. 
C) debit to Retained Earnings and a credit to Cash. 
D) debit to Common Stock and a credit to Retained Earnings. 
A) debit to Common Stock and a credit to Common Stock. 
B) debit to Cash and a credit to Common Stock. 
C) debit to Retained Earnings and a credit to Cash. 
D) debit to Common Stock and a credit to Retained Earnings.

Question 9

The Balance Sheet lists:

Accepted Answer

A) assets, liabilities, and revenues. 
B) revenues and expenses. 
C) assets, liabilities, and stockholders' equity. 
D) dividends and assets. 
A) assets, liabilities, and revenues. 
B) revenues and expenses. 
C) assets, liabilities, and stockholders' equity. 
D) dividends and assets.

Question 10

Which of the following is NOT an asset account?

Accepted Answer

A) Accounts Receivable 
B) Prepaid Rent 
C) Common Stock 
D) All of these are asset accounts. 
A) Accounts Receivable 
B) Prepaid Rent 
C) Common Stock 
D) All of these are asset accounts.

Question 11

Accrued Salaries Payable is a liability account.

Accepted Answer

A) True 
 B)False

Question 12

If the credit amount of an entry to record the payment of salaries was not posted:

Accepted Answer

A) assets would be overstated and owners' equity would be overstated. 
B) liabilities would be understated and owners' equity would be overstated. 
C) expenses would be understated and owners' equity would be understated. 
D) there would be no effect on stockholders' equity. 
A) assets would be overstated and owners' equity would be overstated. 
B) liabilities would be understated and owners' equity would be overstated. 
C) expenses would be understated and owners' equity would be understated. 
D) there would be no effect on stockholders' equity.

Question 13

Accounting transactions are initially recorded in the:

Accepted Answer

A) T-account. 
B) ledger. 
C) journal. 
D) financial statements. 
A) T-account. 
B) ledger. 
C) journal. 
D) financial statements.

Question 14

A record of all the changes in a particular asset, liability, or stockholders' equity during a period is called a (n):

Accepted Answer

A) transaction. 
B) trial balance. 
C) journal 
D) account. 
A) transaction. 
B) trial balance. 
C) journal 
D) account.

Question 15

A trial balance is a list of all accounts and their balances for a period of time.

Accepted Answer

A) True 
 B)False

Question 16

ABC Company had a beginning Accounts Receivable balance of $10,000, and had $12,000 of sales on account for the month. The ending Accounts Receivable balance was $14,000. Collections on Accounts Receivable for the month:

Accepted Answer

A) were $12,000. 
B) were $36,000. 
C) were $8,000. 
D) can't be determined from the information given. 
A) were $12,000. 
B) were $36,000. 
C) were $8,000. 
D) can't be determined from the information given.

Question 17

All of the statements are true about the income statement EXCEPT the income statement:

Accepted Answer

A) data appears as revenues and expenses under Retained Earnings. 
B) reports revenues and expenses. 
C) reports a net income or a net loss. 
D) is as of a specific date and not a period of time. 
A) data appears as revenues and expenses under Retained Earnings. 
B) reports revenues and expenses. 
C) reports a net income or a net loss. 
D) is as of a specific date and not a period of time.

Question 18

Purchasing supplies on account would:

Accepted Answer

A) increase total assets and decrease total liabilities. 
B) increase total liabilities and decrease total assets. 
C) increase total assets and increase total liabilities. 
D) increase total liabilities and increase stockholders' equity. 
A) increase total assets and decrease total liabilities. 
B) increase total liabilities and decrease total assets. 
C) increase total assets and increase total liabilities. 
D) increase total liabilities and increase stockholders' equity.

Question 19

The classification and normal balance of the cash account is:

Accepted Answer

A) an expense account with a debit balance. 
B) an expense account with a credit balance. 
C) an asset account with a credit balance. 
D) an asset account with a debit balance. 
A) an expense account with a debit balance. 
B) an expense account with a credit balance. 
C) an asset account with a credit balance. 
D) an asset account with a debit balance.

Question 20

If the debit amount of an entry to record the purchase of supplies on account was not posted:

Accepted Answer

A) assets would be understated. 
B) assets would be overstated. 
C) liabilities would be understated. 
D) liabilities would be overstated. 
A) assets would be understated. 
B) assets would be overstated. 
C) liabilities would be understated. 
D) liabilities would be overstated.

Which of the following accounts are a standard component of stockholders' equity?

Which of the following transactions would increase total assets? I. Borrowed cash on a note payable, $80,000 II. Provided services on account, $10,000 III. Received cash from a customer as payment on account, $8,000 IV. Received a utility bill, $1,200

Cash dividends paid to the stockholders will:

Consider the following transactions: I. Owners invested $8,000 cash to begin the business II. Provided services for cash, $6,000 III. Provided services on account, $4,000 IV. Paid cash for expenses, $7,500 How much net income did the business have?

A chart of accounts is organized in the alphabetical order of the accounting equation-with assets first, followed by expenses, liabilities, owners' equity, and revenues-because using numbers can be very complicated.

When a business makes a sale on account, the asset created is a(n):

When a company performs a service and immediately collects the cash from the customer, which of the following would occur?

An owner makes an investment of cash into the business. This transaction would include a:

The Balance Sheet lists:

Which of the following is NOT an asset account?

Accrued Salaries Payable is a liability account.

If the credit amount of an entry to record the payment of salaries was not posted:

Accounting transactions are initially recorded in the:

A record of all the changes in a particular asset, liability, or stockholders' equity during a period is called a (n):

A trial balance is a list of all accounts and their balances for a period of time.

ABC Company had a beginning Accounts Receivable balance of $10,000, and had $12,000 of sales on account for the month. The ending Accounts Receivable balance was $14,000. Collections on Accounts Receivable for the month:

All of the statements are true about the income statement EXCEPT the income statement:

Purchasing supplies on account would:

The classification and normal balance of the cash account is:

If the debit amount of an entry to record the purchase of supplies on account was not posted:

The Financial Statements

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory and Cost of Goods Sold

Plant Assets Intangibles

Liabilities

Stockholders Equity

Long-Term Investments International Operations

The Income Statement the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Transaction Analysis

Which of the following accounts are a standard component of stockholders' equity?

Which of the following transactions would increase total assets? I. Borrowed cash on a note payable, $80,000 II. Provided services on account, $10,000 III. Received cash from a customer as payment on account, $8,000 IV. Received a utility bill, $1,200

Cash dividends paid to the stockholders will:

Consider the following transactions: I. Owners invested $8,000 cash to begin the business II. Provided services for cash, $6,000 III. Provided services on account, $4,000 IV. Paid cash for expenses, $7,500 How much net income did the business have?

A chart of accounts is organized in the alphabetical order of the accounting equation-with assets first, followed by expenses, liabilities, owners' equity, and revenues-because using numbers can be very complicated.

When a business makes a sale on account, the asset created is a(n):

When a company performs a service and immediately collects the cash from the customer, which of the following would occur?

An owner makes an investment of cash into the business. This transaction would include a:

The Balance Sheet lists:

Which of the following is NOT an asset account?

Accrued Salaries Payable is a liability account.

If the credit amount of an entry to record the payment of salaries was not posted:

Accounting transactions are initially recorded in the:

A record of all the changes in a particular asset, liability, or stockholders' equity during a period is called a (n):

A trial balance is a list of all accounts and their balances for a period of time.

ABC Company had a beginning Accounts Receivable balance of $10,000, and had $12,000 of sales on account for the month. The ending Accounts Receivable balance was $14,000. Collections on Accounts Receivable for the month:

All of the statements are true about the income statement EXCEPT the income statement:

Purchasing supplies on account would:

The classification and normal balance of the cash account is:

If the debit amount of an entry to record the purchase of supplies on account was not posted:

The Financial Statements

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory and Cost of Goods Sold

Plant Assets Intangibles

Liabilities

Stockholders Equity

Long-Term Investments International Operations

The Income Statement the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters