Question 1

The gross increases in stockholders' equity attributable to business activities are called:

Accepted Answer

A)  assets. 
B)  liabilities. 
C)  revenues. 
D)  net income. 
A)  assets. 
B)  liabilities. 
C)  revenues. 
D)  net income.

Question 2

Buying equipment for cash affects which account/ accounts?

Accepted Answer

A)  Cash only 
B)  Retained earnings only 
C)  Equipment and retained earnings 
D)  Cash and equipment 
A)  Cash only 
B)  Retained earnings only 
C)  Equipment and retained earnings 
D)  Cash and equipment

Question 3

If a $15,000 purchase of equipment for cash is incorrectly recorded as an increase to equipment and as an increase to cash, at the end of the period assets will:

Accepted Answer

A)  exceed liabilities and stockholders' equity by $15,000. 
B)  equal liabilities and stockholders' equity. 
C)  exceed liabilities and stockholders' equity by $30,000. 
D)  exceed liabilities and stockholders' equity by $40,000. 
A)  exceed liabilities and stockholders' equity by $15,000. 
B)  equal liabilities and stockholders' equity. 
C)  exceed liabilities and stockholders' equity by $30,000. 
D)  exceed liabilities and stockholders' equity by $40,000.

Question 4

A to Z Corporation issued a $30,000 note payable to borrow cash from the bank. On the Statement of Cash Flows, the transaction would be classified as:

Accepted Answer

A)  Cash Flows from Operating Activities. 
B)  Cash Flows from Investing Activities. 
C)  Cash Flows from Financing Activities. 
D)  Noncash transaction. 
A)  Cash Flows from Operating Activities. 
B)  Cash Flows from Investing Activities. 
C)  Cash Flows from Financing Activities. 
D)  Noncash transaction.

Question 5

ABC Company deposited $20,000 in a bank account in return for issuing shares in the corporation. This transaction would affect which two financial statement elements?

Accepted Answer

A)  Assets and stockholders' equity 
B)  Assets and liabilities 
C)  Liabilities and stockholders' equity 
D)  None of these 
A)  Assets and stockholders' equity 
B)  Assets and liabilities 
C)  Liabilities and stockholders' equity 
D)  None of these

Question 6

Gibbs Company has $16,000 in Retained Earnings, $27,000 in Assets, and $5,000 in Liabilities. How much is in Common Stock?

Accepted Answer

A)  $22,000 
B)  $16,000 
C)  $11,000 
D)  $6,000 
A)  $22,000 
B)  $16,000 
C)  $11,000 
D)  $6,000

Question 7

The basic financial statements do not include the:

Accepted Answer

A)  income statement. 
B)  tax return. 
C)  balance sheet. 
D)  statement of cash flows. 
A)  income statement. 
B)  tax return. 
C)  balance sheet. 
D)  statement of cash flows.

Question 8

Retained earnings will be increased by the amount in the dividend account.

Accepted Answer

A) True 
 B)False

Question 9

For EFG Co., the transaction "receipt of interest income" would:

Accepted Answer

A)  increase total assets. 
B)  decrease total assets. 
C)  have no effect on total assets. 
D)  decrease total liabilities. 
A)  increase total assets. 
B)  decrease total assets. 
C)  have no effect on total assets. 
D)  decrease total liabilities.

The gross increases in stockholders' equity attributable to business activities are called:

Buying equipment for cash affects which account/ accounts?

If a $15,000 purchase of equipment for cash is incorrectly recorded as an increase to equipment and as an increase to cash, at the end of the period assets will:

A to Z Corporation issued a $30,000 note payable to borrow cash from the bank. On the Statement of Cash Flows, the transaction would be classified as:

ABC Company deposited $20,000 in a bank account in return for issuing shares in the corporation. This transaction would affect which two financial statement elements?

Gibbs Company has $16,000 in Retained Earnings, $27,000 in Assets, and $5,000 in Liabilities. How much is in Common Stock?

The basic financial statements do not include the:

Retained earnings will be increased by the amount in the dividend account.

For EFG Co., the transaction "receipt of interest income" would:

The Role of Accounting in Business

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, Internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters

Exam 2: Basic Accounting Concepts

The gross increases in stockholders' equity attributable to business activities are called:

Buying equipment for cash affects which account/ accounts?

If a $15,000 purchase of equipment for cash is incorrectly recorded as an increase to equipment and as an increase to cash, at the end of the period assets will:

A to Z Corporation issued a $30,000 note payable to borrow cash from the bank. On the Statement of Cash Flows, the transaction would be classified as:

ABC Company deposited $20,000 in a bank account in return for issuing shares in the corporation. This transaction would affect which two financial statement elements?

Gibbs Company has $16,000 in Retained Earnings, $27,000 in Assets, and $5,000 in Liabilities. How much is in Common Stock?

The basic financial statements do not include the:

Retained earnings will be increased by the amount in the dividend account.

For EFG Co., the transaction "receipt of interest income" would:

The Role of Accounting in Business

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, Internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters