ACCT 201 practice test 1

ACCT 201 practice test 1 - 1. Tanner Company sold stock for...

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1. Tanner Company sold stock for cash and received cash for services performed during the current month. Which of the following summarizes the income statement impact of these transactions for the current month? a. Both the sale of stock and the performance of services increased revenues for the company. b. The sale of stock caused a decrease in revenues and the performance of services caused an increase in revenues. c. Only the performance of services caused an increase in revenues. d. Neither of the above transactions have an impact on the income statement. 2. Harley Company, a corporation, began operations on December 1, 1995. During January of 1996, the following transactions occurred: Received cash of $6,000 for the services performed during January. Billed customers an additional $8,000 for services performed during January. Received payment from customers in the amount of $5,000 for services performed during January. Received payment from customers in the amount of $5,000 for services performed in December. What is the total amount of revenue that Hartley company should report for January, 1996? a. $14,000 b. $19,000. c. $13,000 d. $11,000 3. Swami Company, a corporation, began operations on December 1, 1995. During January of 1996, the following transactions occurred: Paid cash of $11,00 for rent for January. Paid $9,000 cash for other expenses relating to January. Paid utilities for January in the amount of $1,000. Paid a cash dividend to shareholders in the amount of $500 during January. What is the total amount of expenses that Swami Company should report for January, 1996? a. $20,000 b. $21,000 c. $21,500 d. $20,500 4. At the beginning of the year, Sweet Sports, Inc. reported $16,000 of common stock and $12,000 of retained earnings. During the year, expenses amounted to $56,000. Dividends paid during the year amounted to $4,000. At the end of the year, Sweet Sports, Inc. reported $17,000 of common stock and $35,000 of retained earnings. How much revenue did the company report for the year?
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a. $27,000 b. $28,000 c. $83,000 d. $84,000 5. Helmsby Company, Inc. performed services for customers on account for $24,000 during the month of January. In addition, Helmsby purchased supplies for $8,000 on account. What are balances of Accounts Receivable and Accounts payable at the end of January assuming no other transactions affected these accounts? Accounts Receivable Accounts Payable a. $8,000 $24,000 b. $24,000 $8,000 c. $32,000 $0 d. $0 $32,000 6. Which one of the following statements is true? a. A T-account can have more than one debit side and more than one credit side. b. Debits are always on the left and credits are always on the right. c.
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ACCT 201 practice test 1 - 1. Tanner Company sold stock for...

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