Question 1

Which of the following transactions has no effect on owner's equity?

Accepted Answer

A) Paying salaries expense 
B) Equipment purchase 
C) Billing for services rendered 
D) A withdrawal 
A) Paying salaries expense 
B) Equipment purchase 
C) Billing for services rendered 
D) A withdrawal B

Question 2

Which of the following transactions would cause an asset to decrease and the owner's equity to decrease?

Accepted Answer

A) The business provided services to a cash customer. 
B) The business bought supplies for cash. 
C) The owner withdrew cash from the business. 
D) The business bought supplies on account. 
A) The business provided services to a cash customer. 
B) The business bought supplies for cash. 
C) The owner withdrew cash from the business. 
D) The business bought supplies on account. C

Question 3

If total liabilities are $18,000 and owner's equity is $21,000,the total assets must be:

Accepted Answer

A) $39,000. 
B) $5,000. 
C) $20,000. 
D) $17,000. 
A) $39,000. 
B) $5,000. 
C) $20,000. 
D) $17,000. A

Question 4

If the assets owned by a business total $100,000,owner's equity must also total $100,000.

Accepted Answer

A) True 
 B)False

Question 5

The financial statement that shows revenue and expenses for a period of time is the:

Accepted Answer

A) balance sheet. 
B) income statement. 
C) statement of owner's equity. 
D) statement of cash flows. 
A) balance sheet. 
B) income statement. 
C) statement of owner's equity. 
D) statement of cash flows.

Question 6

The type of business organization that can continue indefinitely is known as a:

Accepted Answer

A) sole proprietorship. 
B) partnership. 
C) corporation. 
D) None of the above 
A) sole proprietorship. 
B) partnership. 
C) corporation. 
D) None of the above

Question 7

Bonnie's Baskets purchases $4,000 worth of office equipment on account.This causes:

Accepted Answer

A) Cash and Capital to decrease. 
B) Office Equipment and Accounts Payable to increase. 
C) Office Equipment to decrease and Accounts Payable to increase. 
D) Accounts Payable to increase and Capital to decrease. 
A) Cash and Capital to decrease. 
B) Office Equipment and Accounts Payable to increase. 
C) Office Equipment to decrease and Accounts Payable to increase. 
D) Accounts Payable to increase and Capital to decrease.

Question 8

Which of the following is a characteristic of a sole proprietorship?

Accepted Answer

A) Business owned by more than one person 
B) Easy to form 
C) Each stockholder acts as an owner of the company 
D) Can continue indefinitely 
A) Business owned by more than one person 
B) Easy to form 
C) Each stockholder acts as an owner of the company 
D) Can continue indefinitely

Question 9

Owner's withdrawals:

Accepted Answer

A) decrease assets. 
B) increase expenses. 
C) increase liabilities. 
D) decrease withdrawals. 
A) decrease assets. 
B) increase expenses. 
C) increase liabilities. 
D) decrease withdrawals.

Question 10

Withdrawals are considered an expense of doing business.

Accepted Answer

A) True 
 B)False

Question 11

Katelyn purchased $11,000 of new electronic equipment for her DJ Company on account.The effect on the basic accounting equation was to:

Accepted Answer

A) decrease Cash $11,000 and increase Equipment $11,000. 
B) increase Equipment $11,000 and increase Accounts Payable $11,000. 
C) decrease Cash $11,000 and increase Accounts Payable $11,000. 
D) increase Cash $11,000 and increase Equipment $11,000. 
A) decrease Cash $11,000 and increase Equipment $11,000. 
B) increase Equipment $11,000 and increase Accounts Payable $11,000. 
C) decrease Cash $11,000 and increase Accounts Payable $11,000. 
D) increase Cash $11,000 and increase Equipment $11,000.

Question 12

Calculate the total Assets if the company has: Cash $200,Accounts Receivable $300,Accounts Payable $500,Equipment $500.
$ ________

Accepted Answer

($1,000 =

Question 13

The statement of owner's equity shows assets,liabilities and capital..

Accepted Answer

A) True 
 B)False

Question 14

Which is an advantage of a sole proprietorship form of business?

Accepted Answer

A) There is limited personal risk. 
B) The business can continue indefinitely. 
C) The owner makes all the decisions. 
D) All of these answers are correct. 
A) There is limited personal risk. 
B) The business can continue indefinitely. 
C) The owner makes all the decisions. 
D) All of these answers are correct.

Question 15

An expense should be recorded when:

Accepted Answer

A) the bill is paid. 
B) the expense is incurred. 
C) a bill is received in the mail. 
D) None of the above are correct. 
A) the bill is paid. 
B) the expense is incurred. 
C) a bill is received in the mail. 
D) None of the above are correct.

Question 16

Vic's Mart collects $700 of its accounts receivable.The expanded accounting equation impact is:

Accepted Answer

A) Cash and Capital increase $700. 
B) Cash and Revenue increase $700. 
C) Cash increases and Accounts Receivable decreases $700. 
D) Accounts Receivable decreases and Capital increases $700. 
A) Cash and Capital increase $700. 
B) Cash and Revenue increase $700. 
C) Cash increases and Accounts Receivable decreases $700. 
D) Accounts Receivable decreases and Capital increases $700.

Question 17

If total liabilities increased by $6,000 and the assets increased by $8,000 during the accounting period,what is the change in the owner's equity amount?

Accepted Answer

A) Increase of $2,000 
B) Decrease of $2,000 
C) Increase of $10,000 
D) Decrease of $10,000 
A) Increase of $2,000 
B) Decrease of $2,000 
C) Increase of $10,000 
D) Decrease of $10,000

Question 18

When services are rendered but payment is not made,which account would be increased?

Accepted Answer

A) Accounts Receivable 
B) Accounts Payable 
C) Cash 
D) Withdrawal 
A) Accounts Receivable 
B) Accounts Payable 
C) Cash 
D) Withdrawal

Question 19

Carrie billed her legal clients $6,000 for legal work completed during the month.This transaction will:

Accepted Answer

A) cause a $6,000 increase in revenues and liabilities. 
B) cause a $6,000 increase in revenues and a decrease in liabilities. 
C) cause a $6,000 increase in assets and revenues. 
D) not be recorded until the cash is collected. 
A) cause a $6,000 increase in revenues and liabilities. 
B) cause a $6,000 increase in revenues and a decrease in liabilities. 
C) cause a $6,000 increase in assets and revenues. 
D) not be recorded until the cash is collected.

Question 20

Record the following transactions in the basic accounting equation:
a.Brian invests $10,000 cash to begin an accounting service.
b.The company buys office furniture for cash,$600.
c.The company buys additional office furniture on account,$300.
d.The company makes a payment on the office furniture,$200.

Accepted Answer

The answer of Record the following transactions in the basic...

Exam 1: Accounting Concepts and Procedures

Which of the following transactions has no effect on owner's equity?

Which of the following transactions would cause an asset to decrease and the owner's equity to decrease?

If total liabilities are $18,000 and owner's equity is $21,000,the total assets must be:

If the assets owned by a business total $100,000,owner's equity must also total $100,000.

The financial statement that shows revenue and expenses for a period of time is the:

The type of business organization that can continue indefinitely is known as a:

Bonnie's Baskets purchases $4,000 worth of office equipment on account.This causes:

Which of the following is a characteristic of a sole proprietorship?

Owner's withdrawals:

Withdrawals are considered an expense of doing business.

Katelyn purchased $11,000 of new electronic equipment for her DJ Company on account.The effect on the basic accounting equation was to:

Calculate the total Assets if the company has: Cash $200,Accounts Receivable $300,Accounts Payable $500,Equipment $500. $ ________

The statement of owner's equity shows assets,liabilities and capital..

Which is an advantage of a sole proprietorship form of business?

An expense should be recorded when:

Vic's Mart collects $700 of its accounts receivable.The expanded accounting equation impact is:

If total liabilities increased by $6,000 and the assets increased by $8,000 during the accounting period,what is the change in the owner's equity amount?

When services are rendered but payment is not made,which account would be increased?

Carrie billed her legal clients $6,000 for legal work completed during the month.This transaction will:

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, plant, equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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