20170217 APA2111 MT StudyGuide.docx

20170217 APA2111 MT StudyGuide.docx - APA 2111 Midterm...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
APA 2111 Midterm Study Guide This study guide will help you to prepare for the multiple choice format of the midterm. You have already covered the concepts in your chapter readings and through MAL. The answers to the questions are at the endof the document so you can check your work. Work as many as you can and determine the areas you need to review. It easy to study what you already know, but you’ll see improvements in your scores by filling in the gaps and learnin As a reminder, this course has a midterm and a cumulative final. Be sure to ask your instructor if you have questio or need additional explanations. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The purpose of the accounting process is to provide financial information about: 1) _______ A) sole proprietorships. B) large corporations. C) small businesses. D) All of these answers are correct. 2) Which of the following will decrease owner's equity? 2) _______ A) An investment by the owner B) A withdrawal by the owner C) An exchange of assets D) The purchase of an asset on credit 3) If Ol' Fashioned Toys' revenues are less than its expenses during the accounting period: 3) _______ A) owner's withdrawals increase owner's equity. B) the business will incur a net loss. C) net income causes liabilities to decrease. D) owner's withdrawals increase net income. 4) The purchase of supplies for cash would affect which account category? 4) _______ A) Expense B) Capital C) Assets D) Liabilities 5) Items owned by the business such as land, supplies and equipment are: 5) _______ A) assets. B) owner's equity. C) expense. D) liabilities. 6) Which of the following is NOT an asset? 6) _______ A) Accounts Payable B) Buildings C) Cash D) Accounts Receivable 7) If total liabilities increased by $2,000 and the assets increased by $2,000 during the accounting period, what is the change in the owner's equity amount? 7) _______ A) Decrease of $8,000 B) Decrease of $4,000 C) No effect on owner's equity D) Increase of $8,000 8) The claims of creditors against the assets are: 8) _______ A) owner's equity. B) liabilities. C) revenues. D) expenses. 9) Assets are equal to: 9) _______ A) liabilities - revenues. B) liabilities - owner's equity. C) revenues + liabilities. D) liabilities + owner's equity. 10) The basic accounting equation is: 10) ______ A) Assets = Owner's Equity - Liabilities. B) Assets = Revenues - Expenses. C) Assets = Liabilities - Owner's Equity. D) Assets = Liabilities + Owner's Equity.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
11) If total liabilities are $20,000 and owner's equity is $32,000, the total assets must be: 11) ______ A) $15,000. B) $52,000. C) $12,000. D) $8,000. 12) If total liabilities are $2,000 and total assets are $10,000, owner's equity must be: 12) ______ A) $8,000. B) $6,000. C) $12,000. D) $10,000.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern