Question 1

Revenues received during an accounting period increase owner's equity.

Accepted Answer

A) True 
 B)False

Question 2

Jason purchased office equipment for $4,800 in cash.This transaction would

Accepted Answer

A)  increase assets and increase owner's equity. 
B)  increase assets and increase liabilities. 
C)  increase one asset and decrease another asset. 
D)  decrease assets and decrease liabilities. 
A)  increase assets and increase owner's equity. 
B)  increase assets and increase liabilities. 
C)  increase one asset and decrease another asset. 
D)  decrease assets and decrease liabilities.

Question 3

Match the terms with the definitions.

-An unwritten promise to pay a supplier for assets purchased or services rendered.

Accepted Answer

A)  account 
B)  accounts payable 
C)  accounts receivable 
D)  accounting equation 
E)  assets
F) balance sheet
G) business entity
H) business entity concept
I) business transaction
J) drawing
K) expenses
L) income statement
M) liability
N) net income
O) net loss
P) notes payable
Q) owner's equity
R) revenues
S) statement of owner's equity 
A)  account 
B)  accounts payable 
C)  accounts receivable 
D)  accounting equation 
E)  assets
F) balance sheet
G) business entity
H) business entity concept
I) business transaction
J) drawing
K) expenses
L) income statement
M) liability
N) net income
O) net loss
P) notes payable
Q) owner's equity
R) revenues
S) statement of owner's equity

Question 4

The financial statement that shows the state of the firm's assets,liabilities,and owner's equity on a specific date is called a(n)

Accepted Answer

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

Question 5

Other terms used for owner's equity include net worth and capital.

Accepted Answer

A) True 
 B)False

Question 6

An increase in a revenue account may also result in an increase in the accounts receivable account.

Accepted Answer

A) True 
 B)False

Question 7

If the revenue of a period exceeds the expenses,the excess represents a net loss.

Accepted Answer

A) True 
 B)False

Question 8

Match between columns
                        Premises: P. Coyote, Drawing
Prepaid Rent
Supplies
Advertising Expense
Cash
Utility Expense
P. Coyote, Capital
Accounts Payable
Wages Expense
Fees Earned

Accepted Answer

The Answer of E = Expense and OE = Owner's is...

Question 9

Expenses represent a decrease in liabilities.

Accepted Answer

A) True 
 B)False

Question 10

A(n)____________________ is a separate record used to summarize changes in assets,liabilities,and owner's equity of a business.

Accepted Answer

The answer of A(n)____________________ is a separate record used to...

Question 11

The accounting equation shows the relationship among the three basic accounting elements-assets,expenses,and owner's equity.

Accepted Answer

A) True 
 B)False

Question 12

____________________ represent the decrease in assets (or increase in liabilities)as a result of efforts made to produce revenues.

Accepted Answer

The answer of ____________________ represent the decrease in assets (or...

Question 13

Recognizing the effects of transactions on assets,liabilities,owner's equity,revenue,and expenses of a business is the processing function.

Accepted Answer

A) True 
 B)False

Question 14

The statement of owner's equity shows the state of the business on a specific date.

Accepted Answer

A) True 
 B)False

Question 15

Madame Shira began a fortune telling business on May 1.The following transactions occurred:
?
 1. Owner Madame Shira invested $ \$ 5,000 $ cash in the business.
2. Purchased $ \$ 2,000 $ of furniture with a down payment of $ \$ 500 $; the rest by issuing an account payable to be paid in three monthly installments.
3. Paid $ \$ 700 $ rent.
4. Purchased a crystal ball for $ \$ 300 $.
5. Paid $ \$ 1,700 $ for a 12 -month insurance policy.
6. During the first month received $ \$ 2,500 $ from cash customers.
7. Sent billings of $ \$ 2,000 $ for services rendered to credit customers.
8. Paid assistant $ \$ 1,500 $ wages for the month.
9. Received $ \$ 600 $ in payments from credit customers.
10. Borrowed $ \$ 3,200 $ by signing a note.
11. Made a $ \$ 500 $ payment on the furniture bill (from transaction 2).
12. Owner withdrew $ \$ 300 $ cash for personal use.
13. Paid bills for advertising $ \$ 60 $, utilities $ \$ 39 $, and repairs $ \$ 52 $. Required:
1.Enter the above transactions in an accounting equation work sheet.
2.Prepare an income statement for Madame Shira for the month of May.
3.Prepare a statement of owner's equity for the month of May.

Accepted Answer

11ea84ea_4

Question 16

According to the ____________________,nonbusiness assets and liabilities are not included in the business entity's accounting records.

Accepted Answer

business e

Question 17

Match the terms with the definitions.

-The amount by which the business assets exceed the business liabilities.

Accepted Answer

A)  account 
B)  accounts payable 
C)  accounts receivable 
D)  accounting equation 
E)  assets
F) balance sheet
G) business entity
H) business entity concept
I) business transaction
J) drawing
K) expenses
L) income statement
M) liability
N) net income
O) net loss
P) notes payable
Q) owner's equity
R) revenues
S) statement of owner's equity 
A)  account 
B)  accounts payable 
C)  accounts receivable 
D)  accounting equation 
E)  assets
F) balance sheet
G) business entity
H) business entity concept
I) business transaction
J) drawing
K) expenses
L) income statement
M) liability
N) net income
O) net loss
P) notes payable
Q) owner's equity
R) revenues
S) statement of owner's equity

Question 18

The ____________________ reports the investments and withdrawals by the owner,the profits and losses generated through operations,and how they have affected the capital account.

Accepted Answer

statement

Question 19

Kristin Holden started her own consulting business in July,20--.During the first month,the following transactions occurred:
Required:
 a. Owner invested $\$ 12,000$ cash in the business.
b. Purchased office equipment for $\$ 7,500$ cash.
c. Purchased computer equipment costing $\$ 11,500$ on account.
d. Paid $\$ 1,100$ office rent for the month.
e. Received $\$ 1,700$ cash from a client for services rendered.
f. Paid water bill for the month, $\$ 170$.
g. Paid $\$ 2,400$ on account for computer equipment purchased in transaction (c).
h. Paid the electric bill for the month, $\$ 200$. Record the effects of these transactions in an accounting equation worksheet.
?

Accepted Answer

? @#IMG-DLM&_TB4041_

Question 20

Any accounting period of twelve months' duration is usually referred to as a fiscal year.

Accepted Answer

A) True 
 B)False

Revenues received during an accounting period increase owner's equity.

Jason purchased office equipment for $4,800 in cash.This transaction would

Match the terms with the definitions. -An unwritten promise to pay a supplier for assets purchased or services rendered.

The financial statement that shows the state of the firm's assets,liabilities,and owner's equity on a specific date is called a(n)

Other terms used for owner's equity include net worth and capital.

An increase in a revenue account may also result in an increase in the accounts receivable account.

If the revenue of a period exceeds the expenses,the excess represents a net loss.

Expenses represent a decrease in liabilities.

A(n)____________________ is a separate record used to summarize changes in assets,liabilities,and owner's equity of a business.

The accounting equation shows the relationship among the three basic accounting elements-assets,expenses,and owner's equity.

____________________ represent the decrease in assets (or increase in liabilities)as a result of efforts made to produce revenues.

Recognizing the effects of transactions on assets,liabilities,owner's equity,revenue,and expenses of a business is the processing function.

The statement of owner's equity shows the state of the business on a specific date.

According to the ____________________,nonbusiness assets and liabilities are not included in the business entity's accounting records.

Match the terms with the definitions. -The amount by which the business assets exceed the business liabilities.

The ____________________ reports the investments and withdrawals by the owner,the profits and losses generated through operations,and how they have affected the capital account.

Any accounting period of twelve months' duration is usually referred to as a fiscal year.

Introduction to Accounting

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Module Accounting For A Professional Service Business The Combination Journal

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Exam 2: Analyzing Transactions: the Accounting Equation

Revenues received during an accounting period increase owner's equity.

Jason purchased office equipment for $4,800 in cash.This transaction would

Match the terms with the definitions. -An unwritten promise to pay a supplier for assets purchased or services rendered.

The financial statement that shows the state of the firm's assets,liabilities,and owner's equity on a specific date is called a(n)

Other terms used for owner's equity include net worth and capital.

An increase in a revenue account may also result in an increase in the accounts receivable account.

If the revenue of a period exceeds the expenses,the excess represents a net loss.

Expenses represent a decrease in liabilities.

A(n)____________________ is a separate record used to summarize changes in assets,liabilities,and owner's equity of a business.

The accounting equation shows the relationship among the three basic accounting elements-assets,expenses,and owner's equity.

____________________ represent the decrease in assets (or increase in liabilities)as a result of efforts made to produce revenues.

Recognizing the effects of transactions on assets,liabilities,owner's equity,revenue,and expenses of a business is the processing function.

The statement of owner's equity shows the state of the business on a specific date.

According to the ____________________,nonbusiness assets and liabilities are not included in the business entity's accounting records.

Match the terms with the definitions. -The amount by which the business assets exceed the business liabilities.

The ____________________ reports the investments and withdrawals by the owner,the profits and losses generated through operations,and how they have affected the capital account.

Any accounting period of twelve months' duration is usually referred to as a fiscal year.

Introduction to Accounting

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Module Accounting For A Professional Service Business The Combination Journal

Filters