Online Exam 2 - A01.V.10. Tests&Quizzes Tests&Quizzes...

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Unformatted text preview: A01.V.10.2 Introduction to Accounting Tests & Quizzes Tests & Quizzes Online Exam 2_02 Return to Assessment List Part 1 of 1 ­ Question 1 of 20 Which accounts are affected when the company buys supplies on account? 90.0/ 100.0 Points 5.0/ 5.0 Points A. assets and capital B. liabilities and capital C. assets and liabilities D. None of the above answers are correct. Question 2 of 20 Carrie billed her legal clients $6,000 for legal work completed during the month. This transaction will __________. 5.0/ 5.0 Points A. cause a $6,000 increase in revenues and liabilities B. cause a $6,000 increase in revenues and a decrease in liabilities C. cause a $6,000 increase in assets and revenues D. not be recorded until the cash is collected Question 3 of 20 Which of the following statements is prepared first? A. Statement of Owner's Equity B. Balance Sheet C. Income Statement D. None of the above 5.0/ 5.0 Points Question 4 of 20 Which of the following is included in the balance sheet? 5.0/ 5.0 Points A. revenue B. salaries expense C. utilities expense D. accounts payable Question 5 of 20 When services are rendered but payment is not made, which account would be increased? 5.0/ 5.0 Points A. accounts receivable B. accounts payable C. cash D. withdrawal Question 6 of 20 The increase or decrease in the owner's equity is reported on the __________. 0.0/ 5.0 Points A. income statement B. statement of owner's equity C. balance sheet D. All of these answers are correct. Question 7 of 20 The statement of owner’s equity contains the __________. A. owner’s capital for the beginning of the period B. liabilities of the company C. total amount owed by credit customers D. balance in the cash account Question 8 of 20 5.0/ 5.0 Points An expense should be recorded when __________. 5.0/ 5.0 Points A. the bill is paid B. the expense is incurred C. a bill is received in the mail D. None of the above answers are correct. Question 9 of 20 The financial statement that shows revenue and expenses for a period of time is the 5.0/ 5.0 Points __________. A. balance sheet B. income statement C. statement of owner's equity D. statement of cash flows Question 10 of 20 If a company's revenues are higher than its expenses, it will cause __________. 5.0/ 5.0 Points A. an increase in owner's equity B. a decrease in owner's equity C. an increase in assets D. no effect on owner's equity Question 11 of 20 Which of the following is not one of the four basic financial statements? A. Statement of Cash Flows B. Income Statement C. Statement of Company Position D. Balance Sheet Question 12 of 20 5.0/ 5.0 Points If beginning capital was $110,000, ending capital is $95,000, and the owner's withdrawals 5.0/ 5.0 Points were $10,000, the amount of net income or net loss was __________. A. net income of $5,000 B. net income of $15,000 C. net loss of $15,000 D. net loss of $5,000 Question 13 of 20 Larry’s Landscaping has total liabilities of $1,650 and assets of $2,500. The amount of the owner’s equity is __________. 5.0/ 5.0 Points A. $4,150 B. $2,500 C. $850 D. $1,650 Question 14 of 20 A revenue should be recorded when __________. 5.0/ 5.0 Points A. it is earned B. payment is received C. the invoice is sent to the customer D. None of the above answers are correct. Question 15 of 20 The payment of accounts payable would __________. A. increase both assets and liabilities B. increase assets and decrease liabilities C. decrease both assets and liabilities D. decrease assets and increase liabilities 5.0/ 5.0 Points Question 16 of 20 Which of the following items are on both the balance sheet and the statement of owner's equity? 5.0/ 5.0 Points A. Net loss B. Capital C. Additional owner's investments D. Owner's withdrawals Question 17 of 20 Ryan withdrew cash from the business to pay his personal cell phone bill. The expanded accounting equation changes include __________. 5.0/ 5.0 Points A. increase in both cash and withdrawal B. decrease in both cash and withdrawal C. decrease in cash and increase in withdrawal D. increase in cash and decrease in withdrawal Question 18 of 20 Which of the following transactions has no effect on owner's equity? 0.0/ 5.0 Points A. paying salaries expense B. equipment purchase C. billing for services rendered D. a withdrawal Question 19 of 20 The financial statement that shows business results in terms of revenue and expenses is __________. A. an income statement B. a balance sheet C. a statement of owner's equity D. the statement of cash flows 5.0/ 5.0 Points Question 20 of 20 A company has the following balances in its asset accounts: Cash, $750; Accounts 5.0/ 5.0 Points Receivable, $125; Equipment, $2,000; Supplies, $875. The amount of the company’s total assets is __________. A. $875 B. $1,750 C. $2,875 D. $3,750 Powered by Sakai Copyright 2003­2017 The Apereo Foundation. All rights reserved. Portions of Sakai are copyrighted by other parties as described in the Acknowledgments screen. ...
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