Question 1

A net loss results

Accepted Answer

A)  when expenses are greater than revenue. 
B)  when assets are greater than liabilities. 
C)  when revenue is greater than expenses. 
D)  when expenses are greater than assets. 
A)  when expenses are greater than revenue. 
B)  when assets are greater than liabilities. 
C)  when revenue is greater than expenses. 
D)  when expenses are greater than assets.

Question 2

Revenue is recorded when cash is collected from charge-account clients.

Accepted Answer

A) True 
 B)False

Question 3

The figure below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $72,000 (Transaction 1). $\begin{array}{|c|c|c|c|c|c|c|c|c|c|}
\hline \text { Trans } & & \text { Assets } & & = & \text { Liab. } & &&{\text { Owner's Equity }} \
\hline & \text { Cash } & \text { Accts } & \text { Supp } & \text { Equip } & \text { Accts } & & \text { G. Sawyer, } & \text { Rev. } & \text { Expense } \
\hline & & \text { Rec } & & & \text { Pay } & & \text { Capital } & & \\hline\\hline 1 & +72,000 & & &&&&+72,000 \
\hline 2 & -8,200 & & & +8,200 \\hline 3 & & 5,200 & & &&&&+5,200 \
\hline 4 & & & & +3,680 & +3,680 \\hline 5 & -3,500 & &&&&& & &-3,500 \
\hline 6 & +670 & -670 & & & \\hline 7 & -2,400 & & & &&&-,400 \
\hline 8 & -450 & & +450 & & \\hline \text { Bal } & 58,120+ & 4,530+ & 450+ & 11,880= & 3,680 & + & 69,600+ & 5,200+ & -3,500 \
\hline
\end{array}$
-What was the net income or net loss for Sawyer Architecture Services for the month of June?

Accepted Answer

Net income

Question 4

The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. $\begin{array}{ll}
\text { Cash } & \text { K. Mitchell, Capital } \
\text { Accounts Receivable } & \text { Revenue } \
\text { Equipment } & \text { Expenses } \
\text { Accounts Payable } &
\end{array}$
-Purchased furniture on credit

Accepted Answer

plus Furni

Question 5

The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. $\begin{array}{ll}
\text { Cash } & \text { K. Mitchell, Capital } \
\text { Accounts Receivable } & \text { Revenue } \
\text { Equipment } & \text { Expenses } \
\text { Accounts Payable } &
\end{array}$
-Performed services on credit

Accepted Answer

plus Accou

Question 6

The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. $\begin{array}{ll}
\text { Cash } & \text { K. Mitchell, Capital } \
\text { Accounts Receivable } & \text { Revenue } \
\text { Equipment } & \text { Expenses } \
\text { Accounts Payable } &
\end{array}$
-Had a computer repaired; payment is due in 30 days

Accepted Answer

plus Expen

Question 7

A business transaction is a financial event that affects the resources of a business.

Accepted Answer

A) True 
 B)False

Question 8

If assets are $17,000 and owner's equity is $10,000, liabilities are ___________________.

Accepted Answer

The answer of If assets are $17,000 and owner's equity...

Question 9

A company has assets of $56,320 and liabilities of $29,500. The owner's equity is $85,820.

Accepted Answer

A) True 
 B)False

Question 10

Withdrawals by the owner are reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 11

An Income Statement is all of the following except

Accepted Answer

A)  a formal report of business operations. 
B)  a profit and loss statement. 
C)  a statement of revenues less withdrawals and expenses. 
D)  a statement of income and expenses. 
A)  a formal report of business operations. 
B)  a profit and loss statement. 
C)  a statement of revenues less withdrawals and expenses. 
D)  a statement of income and expenses.

Question 12

The income statement is also known as the profit and loss statement.

Accepted Answer

A) True 
 B)False

Question 13

The balance sheet shows each of the following except the

Accepted Answer

A)  owner's investment. 
B)  amount and types of property the business owns. 
C)  owner's interest. 
D)  amount owed creditors. 
A)  owner's investment. 
B)  amount and types of property the business owns. 
C)  owner's interest. 
D)  amount owed creditors.

Question 14

The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. $\begin{array}{ll}
\text { Cash } & \text { K. Mitchell, Capital } \
\text { Accounts Receivable } & \text { Revenue } \
\text { Equipment } & \text { Expenses } \
\text { Accounts Payable } &
\end{array}$
-Paid cash for utilities

Accepted Answer

plus Expen

Question 15

The amount of net income or net loss is needed to complete the statement of owner's equity.

Accepted Answer

A) True 
 B)False

Question 16

The Statement of Owner's Equity is calculated as follows:

Accepted Answer

A)  beginning capital + net income - withdrawals + additional investments = ending capital 
B)  beginning capital + net loss + withdrawals + additional investments = ending capital 
C)  beginning capital + net loss - withdrawals + additional investments = ending capital 
D)  beginning capital + net income + withdrawals + additional investments = ending capital 
A)  beginning capital + net income - withdrawals + additional investments = ending capital 
B)  beginning capital + net loss + withdrawals + additional investments = ending capital 
C)  beginning capital + net loss - withdrawals + additional investments = ending capital 
D)  beginning capital + net income + withdrawals + additional investments = ending capital

Question 17

The net income or net loss for the period is shown on both the income statement and the balance sheet.

Accepted Answer

A) True 
 B)False

Question 18

The expenses for a period are reported on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 19

The account used to record amounts that will be collected from charge account customers in the future are referred to as ___________________.

Accepted Answer

acco unts

Question 20

The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. $\begin{array}{ll}
\text { Cash } & \text { K. Mitchell, Capital } \
\text { Accounts Receivable } & \text { Revenue } \
\text { Equipment } & \text { Expenses } \
\text { Accounts Payable } &
\end{array}$
-The owner made an additional investment of cash

Accepted Answer

plus Cash;

A net loss results

Revenue is recorded when cash is collected from charge-account clients.

A business transaction is a financial event that affects the resources of a business.

If assets are $17,000 and owner's equity is $10,000, liabilities are ___________________.

A company has assets of $56,320 and liabilities of $29,500. The owner's equity is $85,820.

Withdrawals by the owner are reported on the income statement.

An Income Statement is all of the following except

The income statement is also known as the profit and loss statement.

The balance sheet shows each of the following except the

The amount of net income or net loss is needed to complete the statement of owner's equity.

The Statement of Owner's Equity is calculated as follows:

The net income or net loss for the period is shown on both the income statement and the balance sheet.

The expenses for a period are reported on the balance sheet.

The account used to record amounts that will be collected from charge account customers in the future are referred to as ___________________.

Accounting: the Language of Business

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Filters

Exam 2: Analyzing Business Transactions

A net loss results

Revenue is recorded when cash is collected from charge-account clients.

A business transaction is a financial event that affects the resources of a business.

If assets are $17,000 and owner's equity is $10,000, liabilities are ___________________.

A company has assets of $56,320 and liabilities of $29,500. The owner's equity is $85,820.

Withdrawals by the owner are reported on the income statement.

An Income Statement is all of the following except

The income statement is also known as the profit and loss statement.

The balance sheet shows each of the following except the

The amount of net income or net loss is needed to complete the statement of owner's equity.

The Statement of Owner's Equity is calculated as follows:

The net income or net loss for the period is shown on both the income statement and the balance sheet.

The expenses for a period are reported on the balance sheet.

The account used to record amounts that will be collected from charge account customers in the future are referred to as ___________________.

Accounting: the Language of Business

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Filters