Question 1

A cash payment on accounts payable will ________.

Accepted Answer

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

Question 2

On May 1,Gonzalez Company paid $36,000 for rent.The rent covers the period May 1 through August 31.Gonzalez Company recorded Prepaid Rent of $36,000.What is the Rent Expense for the period,May 1 through June 30?

Accepted Answer

A)  $0 
B)  $9,000 
C)  $18,000 
D)  $27,000 
A)  $0 
B)  $9,000 
C)  $18,000 
D)  $27,000

Question 3

Cudahy Company had the following transactions:
1)The owner started the company by investing $10,000 of cash.
2)The company paid $2,000 for six months of rent.The rent was paid in advance.
3)The company acquired $3,000 in inventory for cash.
4)The company sold inventory costing $1,400 for $2,900 on account.
After all these transactions,what is the balance in the cash account?

Accepted Answer

A)  $2,100 
B)  $3,500 
C)  $5,000 
D)  $8,000 
A)  $2,100 
B)  $3,500 
C)  $5,000 
D)  $8,000

Question 4

Given below are the activities of the Tamara Company:
$\begin{array} { l  }
 \text {Credit sales  }&\$90,000 \
 \text { Cash sales}&\$50,000 \
 \text {Cash collections from credit customers }&\$ 36,000\
 \text {Purchased inventory on account }&\$27,000 \
\end{array}$

Using the cash basis of accounting,the total revenues for Tamara Company are ________.

Accepted Answer

A)  $56,000 
B)  $86,000 
C)  $90,000 
D)  $173,000 
A)  $56,000 
B)  $86,000 
C)  $90,000 
D)  $173,000

Question 5

Retained earnings are a general claim against ________.

Accepted Answer

A)  stockholders 
B)  creditors 
C)  paid in capital 
D)  total assets 
A)  stockholders 
B)  creditors 
C)  paid in capital 
D)  total assets

Question 6

The matching convention attempts to match revenues and assets to a particular period.

Accepted Answer

A) True 
 B)False

Question 7

An audit guarantees that there are absolutely no mistakes in the financial statements.

Accepted Answer

A) True 
 B)False

Question 8

The stockholders' equity section of a corporation's balance sheet can be divided into ________.

Accepted Answer

A)  net income and retained earnings 
B)  retained earnings and paid-in capital 
C)  net income and paid-in capital 
D)  liabilities and retained earnings 
A)  net income and retained earnings 
B)  retained earnings and paid-in capital 
C)  net income and paid-in capital 
D)  liabilities and retained earnings

Question 9

On July 1,2012,Slowinski Company borrows $100,000 on a 10% note due to a bank in one year.The accounts of Slowinski Company are affected by the adjusting entry at December 31,2012 in which of the following ways?

Accepted Answer

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

Question 10

Cooley Company reports the following accounts and balances at December 31,2015:
 $$\begin{array} { l l } 
\text { Accounts Payable } & \$ 22,800 \
\text { Accounts Receivable } & 18,800 \
\text { Cash } & 24,400 \
\text { Land } & 82,400 \
\text { Machine } & 129,200 \
\text { Merchandise Inventory } & 63,600 \
\text { Long-term Note Payable } & 79,200 \
\text { Short-teran Note Payable } & 14,400 \
\text { Paid-in Capital } & 200,000 \
\text { Retained Earnings } & ? \
\text { Sales Revenue } & 122,000 \
\text { Cost of Goods Sold } & 80,000 \
\text { Operating Expenses } & 40,000
\end{array}$$ 
Required:
Prepare a balance sheet at December 31,2015.Also,prepare an income statement for the year ended December 31,2015.Ignore depreciation expense and interest expense.

Accepted Answer

@#IMG-DLM& Assets:
 @#IMG-DLM& Liabiliti

A cash payment on accounts payable will ________.

On May 1,Gonzalez Company paid $36,000 for rent.The rent covers the period May 1 through August 31.Gonzalez Company recorded Prepaid Rent of $36,000.What is the Rent Expense for the period,May 1 through June 30?

Given below are the activities of the Tamara Company: Credit sales \9 0,000 Cash sales \5 0,000 Cash collections from credit customers \ 36,000 Purchased inventory on account \2 7,000 Using the cash basis of accounting,the total revenues for Tamara Company are ________.

Retained earnings are a general claim against ________.

The matching convention attempts to match revenues and assets to a particular period.

An audit guarantees that there are absolutely no mistakes in the financial statements.

The stockholders' equity section of a corporation's balance sheet can be divided into ________.

On July 1,2012,Slowinski Company borrows $100,000 on a 10% note due to a bank in one year.The accounts of Slowinski Company are affected by the adjusting entry at December 31,2012 in which of the following ways?

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 15: Basic Accounting: Concepts, techniques, and Conventions

A cash payment on accounts payable will ________.

On May 1,Gonzalez Company paid $36,000 for rent.The rent covers the period May 1 through August 31.Gonzalez Company recorded Prepaid Rent of $36,000.What is the Rent Expense for the period,May 1 through June 30?

Given below are the activities of the Tamara Company: Credit sales \9 0,000 Cash sales \5 0,000 Cash collections from credit customers \ 36,000 Purchased inventory on account \2 7,000 Using the cash basis of accounting,the total revenues for Tamara Company are ________.

Retained earnings are a general claim against ________.

The matching convention attempts to match revenues and assets to a particular period.

An audit guarantees that there are absolutely no mistakes in the financial statements.

The stockholders' equity section of a corporation's balance sheet can be divided into ________.

On July 1,2012,Slowinski Company borrows $100,000 on a 10% note due to a bank in one year.The accounts of Slowinski Company are affected by the adjusting entry at December 31,2012 in which of the following ways?

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters