Question 1

If the liabilities owed by a business total $250,000,then the assets must also total $250,000.

Accepted Answer

A) True 
 B)False

Question 2

Given the following account balances,determine the total liabilities.Cash $350,Accounts Receivable $275,Equipment $300 and Capital $700.
$ ________

Accepted Answer

$225 [$350

Question 3

Which of the following is not a type of business organization?

Accepted Answer

A) Corporation 
B) Partnership 
C) Sole proprietorship 
D) Operation 
A) Corporation 
B) Partnership 
C) Sole proprietorship 
D) Operation

Question 4

Match between columns
                        Premises: Land
Cash
Office Supplies
Accounts Receivable
Equipment
Withdrawal
Accounts Payable
Expense
Revenue
Capital

Accepted Answer

The Answer of Liability and Owner's Equity and Asset is...

Question 5

Which accounts are affected when the owner withdraws cash from the business?

Accepted Answer

A) Assets and Withdrawals 
B) Liabilities and Capital 
C) Assets and Liabilities 
D) None of the above are correct. 
A) Assets and Withdrawals 
B) Liabilities and Capital 
C) Assets and Liabilities 
D) None of the above are correct.

Question 6

The claims of creditors against the assets are:

Accepted Answer

A) expenses. 
B) revenues. 
C) liabilities. 
D) owner's equity. 
A) expenses. 
B) revenues. 
C) liabilities. 
D) owner's equity.

Question 7

Determine the beginning capital balance of a business having an ending capital balance of $10,900,no additional investments,withdrawals of $2,500,and a net income of $4,100.
$ ________

Accepted Answer

$9,300 [$1

Question 8

Prepare the financial statements for H.Logan of Logan Motorcycles from the following account balances: 1)an income statement,2)a statement of owner's equity,and 3)a balance sheet for the month ended October 31,200x.You will need to calculate the value of the Accounts Payable account (note: remember the basic accounting equation).
 $\begin{array} { l l } 
\text { Cash } & \$ 1,300 \
\text { Accounts Receivable } & 500 \
\text { Equipment } & 2,000 \
\text { Accounts Payable } & ? ? ? \
\text { Travis, Capital } & 3,000 \
\text { Revenue } & 1,000 \
\text { Expenses } & 700 \
\text { Travis, Withdrawal } & 100
\end{array}$

Accepted Answer

The answer of Prepare the financial statements for H.Logan of...

Question 9

If the assets owned by a business total $60,000 and liabilities total $30,000,then owner's equity totals $90,000.

Accepted Answer

A) True 
 B)False

Question 10

Revenue and cash will always be the same amount.

Accepted Answer

A) True 
 B)False

Question 11

Expenses:

Accepted Answer

A) are costs the company incurs in carrying on operations. 
B) are a subdivision of owner's equity. 
C) record personal expenses not related to the business. 
D) Both A and B are correct. 
A) are costs the company incurs in carrying on operations. 
B) are a subdivision of owner's equity. 
C) record personal expenses not related to the business. 
D) Both A and B are correct.

Question 12

Mary invested cash in her new business.What effect will this have?

Accepted Answer

A) Increase an asset and increase a liability 
B) Decrease an asset and increase a liability 
C) Increase an asset and increase owner's equity 
D) Increase an asset and decrease owner's equity 
A) Increase an asset and increase a liability 
B) Decrease an asset and increase a liability 
C) Increase an asset and increase owner's equity 
D) Increase an asset and decrease owner's equity

Question 13

Which of the following items is not listed on the balance sheet?

Accepted Answer

A) Accounts Payable 
B) Accounts Receivable 
C) Revenue 
D) Equipment 
A) Accounts Payable 
B) Accounts Receivable 
C) Revenue 
D) Equipment

Question 14

If total liabilities are $1,000 and total assets are $8,000,owner's equity must be:

Accepted Answer

A) $7,000. 
B) $3,000. 
C) $10,000. 
D) $13,000. 
A) $7,000. 
B) $3,000. 
C) $10,000. 
D) $13,000.

Question 15

Which financial statement is prepared first?

Accepted Answer

A) Statement of Owner's Equity 
B) Balance Sheet 
C) Income Statement 
D) None of the above 
A) Statement of Owner's Equity 
B) Balance Sheet 
C) Income Statement 
D) None of the above

Question 16

Revenue,expenses,and withdrawals are subdivisions of:

Accepted Answer

A) assets. 
B) liabilities. 
C) owner's equity. 
D) All of these answers are correct. 
A) assets. 
B) liabilities. 
C) owner's equity. 
D) All of these answers are correct.

Question 17

The left side of the accounting equation shows what is owned by the business.

Accepted Answer

A) True 
 B)False

Question 18

The four parts of owner's equity include capital,liabilities,revenue,and expenses.

Accepted Answer

A) True 
 B)False

Question 19

Go Blue Retail Store collected $12,000 of its accounts receivable.The expanded accounting equation changes include:

Accepted Answer

A) Cash and Capital increase,$12,000. 
B) Cash and Revenue increase $12,000. 
C) Cash increases and Accounts Receivable decreases $12,000. 
D) Accounts Receivable decreases and Capital increases $12,000. 
A) Cash and Capital increase,$12,000. 
B) Cash and Revenue increase $12,000. 
C) Cash increases and Accounts Receivable decreases $12,000. 
D) Accounts Receivable decreases and Capital increases $12,000.

Question 20

The cash purchase of a truck was recorded as a purchase on credit.Due to this error:

Accepted Answer

A) assets were overstated. 
B) liabilities were overstated. 
C) answers A and B are both correct. 
D) None of the above are correct. 
A) assets were overstated. 
B) liabilities were overstated. 
C) answers A and B are both correct. 
D) None of the above are correct.

Exam 1: Accounting Concepts and Procedures

If the liabilities owed by a business total $250,000,then the assets must also total $250,000.

Given the following account balances,determine the total liabilities.Cash $350,Accounts Receivable $275,Equipment $300 and Capital $700. $ ________

Which of the following is not a type of business organization?

Which accounts are affected when the owner withdraws cash from the business?

The claims of creditors against the assets are:

Determine the beginning capital balance of a business having an ending capital balance of $10,900,no additional investments,withdrawals of $2,500,and a net income of $4,100. $ ________

If the assets owned by a business total $60,000 and liabilities total $30,000,then owner's equity totals $90,000.

Revenue and cash will always be the same amount.

Expenses:

Mary invested cash in her new business.What effect will this have?

Which of the following items is not listed on the balance sheet?

If total liabilities are $1,000 and total assets are $8,000,owner's equity must be:

Which financial statement is prepared first?

Revenue,expenses,and withdrawals are subdivisions of:

The left side of the accounting equation shows what is owned by the business.

The four parts of owner's equity include capital,liabilities,revenue,and expenses.

Go Blue Retail Store collected $12,000 of its accounts receivable.The expanded accounting equation changes include:

The cash purchase of a truck was recorded as a purchase on credit.Due to this error:

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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