acctg-exam's question - University College of the Cayman...

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

View Full Document Right Arrow Icon
University College of the Cayman Islands ACC121 Introduction to Accounting Assignment #1 Due Date: Monday June 5, 2006 Weight: 20% 1. Smith Company purchased $105,000 of computer equipment from Brown Company. Smith Company paid for the equipment using cash that had been obtained from the initial investment by Connie Smith. The transaction involving the computer equipment should be recorded on the accounting records of which of the following entities? a. Smith Company and Connie Smith's personal records b. Brown Company and Connie Smith's personal records c. Only on Brown Company d. Smith Company and Brown Company 2. The Reynolds Company estimated that the value of its land had increased from $10,000 to $16,000 and therefore wrote up the land account to $16,000. Which accounting concept(s) was violated? a. cost concept b. objectivity concept c. all of the above d. none of the above 3. Equipment with an estimated market value of $45,000 is offered for sale at $65,000. The equipment is acquired for $10,000 in cash and a note payable of $40,000 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is: a. $50,000 b. $65,000 c. $10,000 d. $45,000 4. The accounting equation may be expressed as: a. Assets = Equities – Liabilities b. Assets + Liabilities = Owners Equity c. Assets = Revenues less Liabilities d. Assets - Liabilities = Owners Equity 5. Revenues are reported when: a. a contract is signed b. cash is received from the customer c. work is begun on the job d. work is completed on the job 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
6. Expenses are recorded when: a. cash is paid for services rendered b. a bill is received in advance of services rendered c. services rendered d. none of the above 7. If total liabilities decreased by $25,000 during a period of time and owners equity increased by $30,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is: a. $65,000 increase b. $5,000 decrease c. $5,000 increase d. $65,000 decrease 8. If total assets decreased by $47,000 during a period of time and owners equity increased by $24,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is: a. $23,000 increase b. $47,000 decrease c. $71,000 decrease d. $71,000 increase 9. How does paying dividends with cash affect the business accounting equation? a. decrease assets; decrease owners’ equity b. decrease assets; increase owners’ equity c. increase assets; decrease liabilities d. There is no effect on the assets, liabilities, or owners’ equity. 10. On November 1 of the current year, the assets and liabilities of Jim Chu, M.D., are as follows: Cash, $10,000; Accounts Receivable, $8,200; Supplies, $1,050; Land, $25,000; Accounts Payable, $6,530. What is the amount of the stockholders' equity (Jim Chu's capital) as of November 1 of the current year? a.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/22/2009 for the course ACCOUNTING 1A taught by Professor Seyedin during the Fall '08 term at Foothill College.

Page1 / 14

acctg-exam's question - University College of the Cayman...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online