ACC 210 Final Exam
The following statement provides a picture of a company’s health on a specific date:
A. Income Statement.
B. Balance Sheet.
C. Statement of Cash Flows.
D. Statement of Changes in Owners’ Equity.
A business uses the acquisition/payment and sales/collection processes to purchase and sell
The people the business buys goods from and the major accounts effected are called:
A. Customers, sales, cash.
B. Vendors, purchases, accounts payable.
C. Customers and vendors.
D. Customers, purchases, cash.
At the end of the first year of business, on Dec. 31, 2002, Taylors Company had the following
numbers on their financials:
Assets, $10,000, Contributed Capital, $5,000, Revenues, $4,000,
What is the amount of Taylors’ Liabilities for Dec. 31, 2002?
Retained Earnings is decreased by:
A. Contributions from the owners.
B. Net Income.
D. Cash Inflow from Operating Activities.
E. Cash Inflow from Financing Activities.
Nelson Company opens operations with $5000 in cash, one-half of it in Contributed Capital and
The accounting equation effect would be which of the following:
A. Increase in assets, increase in liabilities.
B. Increase in assets, increase in equity.
C. Increase in assets, increase in liabilities and equity.
D. Increase in liabilities, decrease in equity.
E. Decrease in liabilities, increase in equity.
An entity experienced a transaction that resulted in a $20,000 increase in both the left and right
sides of the accounting equation.
Which of the following explains the transaction?
The entity exchanged shares of stock for a piece of land.
The entity paid cash for equipment.
The entity collected an account receivable.
The entity made a payment on an account payable.
The entity made a payment on a bank loan.