Question 1

Put the 7 main steps of the accounting process in order (from 1 -7)below:

Accepted Answer

The answer of Put the 7 main steps of the...

Question 2

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. A

Question 3

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. C

Question 4

Tracey's Photography completes the following transactions:
a. Tracey invests $10,000 cash in her company.
b. The company purchases equipment on account, $500.
c. The company purchases additional equipment for cash, $200.
d. The company makes a payment on account for the equipment, $300.
Required: Record the above transactions in the basic accounting equation.

Accepted Answer

The answer of Tracey's Photography completes the following transactions:
a. Tracey...

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

Indicate whether each of the following represents (1)Asset, (2)Liability, or (3)Owner's Equity:
1. ________ Office Supplies
2. ________ Accounts Payable
3. ________ Capital
4. ________ Cash
5. ________ Withdrawal
6. ________ Land
7. ________ Accounts Receivable
8. ________ Expense
9. ________ Equipment
10. ________ Revenue

Accepted Answer

1. Asset
2. Liability
3. Owner

Question 7

How does the purchase of office equipment on account affect the accounting equation?

Accepted Answer

A) Assets increase; liabilities decrease 
B) Assets increase; owner's equity increases 
C) Assets increase; liabilities increase 
D) Liabilities increase; owner's equity decreases 
A) Assets increase; liabilities decrease 
B) Assets increase; owner's equity increases 
C) Assets increase; liabilities increase 
D) Liabilities increase; owner's equity decreases

Question 8

Which of the following would result if a business purchased Equipment paying a 40% down payment in cash?

Accepted Answer

A) Equipment would increase and Cash would decrease. 
B) Accounts Payable would increase. 
C) Since the equipment has not been paid in full, there is nothing to record. 
D) Both A and B are correct. 
A) Equipment would increase and Cash would decrease. 
B) Accounts Payable would increase. 
C) Since the equipment has not been paid in full, there is nothing to record. 
D) Both A and B are correct.

Question 9

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 10

The accounting equation states that total assets must always equal total liabilities plus owner's equity.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not an asset?

Accepted Answer

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

Question 12

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 13

The left side of the accounting equation must always equal the right side of the equation.

Accepted Answer

A) True 
 B)False

Question 14

The three elements that make up a balance sheet are assets, liabilities and expenses.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

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 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 18

Revenue and cash will always be the same amount.

Accepted Answer

A) True 
 B)False

Question 19

The balance sheet contains:

Accepted Answer

A) liabilities, expenses and capital. 
B) assets, liabilities and revenues. 
C) expenses, assets and cash. 
D) assets, liabilities and owner's equity. 
A) liabilities, expenses and capital. 
B) assets, liabilities and revenues. 
C) expenses, assets and cash. 
D) assets, liabilities and owner's equity.

Question 20

Withdrawals are business expenses that are included on the balance sheet.

Accepted Answer

A) True 
 B)False

Exam 1: Accounting Concepts and Procedures

Put the 7 main steps of the accounting process in order (from 1 -7)below:

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

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

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

How does the purchase of office equipment on account affect the accounting equation?

Which of the following would result if a business purchased Equipment paying a 40% down payment in cash?

Which financial statement is prepared first?

The accounting equation states that total assets must always equal total liabilities plus owner's equity.

Which of the following is not an asset?

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

The left side of the accounting equation must always equal the right side of the equation.

The three elements that make up a balance sheet are assets, liabilities and expenses.

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

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

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.

The balance sheet contains:

Withdrawals are business expenses that are included on the balance sheet.

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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