acounting_test1

acounting_test1 - 1. Given the following T-account, what...

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1. Given the following T-account, what will be the balance in the cash account after a payment of $250 (d) for supplies? Cash Beg. $150 (a) 200 75 ( b) (c) 500 End. ? A) $875 B) $1,025 C) $150 D) $525 Points Earned: 2.0/2.0 Correct Answer(s): D 2. Accounts with "payable" in the title always represent liabilities. A) True B) False Points Earned: 2.0/2.0 Correct Answer(s): True 3. Which of the following is an example of a liability account? A) Unearned Revenue B) Prepaid Rent C) Inventory D) Equipment Points Earned: 2.0/2.0 Correct Answer(s): A
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4. A company reported revenue of $100,000 and a net loss of $12,000. What amount was reported as expenses? A) $112,000 B) $12,000 C) $88,000 D) $100,000 Points Earned: 2.0/2.0 Correct Answer(s): A 5. If a company receives an initial investment from an owner to start a business, which of the following correctly describes the effect on the accounting equation? A) Cash increases; owner's equity decreases B) Cash decreases; owner's equity decreases C) Cash decreases; owner's equity increases D) Cash increases; owner's equity increases Points Earned: 2.0/2.0 Correct Answer(s): D 6. A company reported assets of $12,000 and liabilities of $2,500, what amount would be reported for owner's equity? A) $14,500 B) $9,500 C) $12,000 D) $2,000 Points Earned: 2.0/2.0 Correct Answer(s): B 7. Unearned revenue is an example of a(n): A) Liability. B) Revenue. C) Asset. D) Expense. Points Earned: 2.0/2.0 Correct Answer(s): A 8. A company pays $2,000 cash on account to a supplier. Which of the following journal entry is correct to record this transaction? A) Debit accounts payable $2,000; credit cash $2,000. B) Debit cash $2,000; credit accounts payable $2,000.
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C) Debit owner's equity $2,000; credit cash $2,000. D) Debit supplies $2,000; credit cash $2,000. Points Earned: 2.0/2.0 Correct Answer(s): A 9. Because assets are shown on the left side of the equal sign in the accounting equation, an increase in assets is shown on the left side of the T-account. A) True B) False Points Earned: 2.0/2.0 Correct Answer(s): True 10. The balance sheet reports a company's financial position at a particular point in time. A) True B) False Points Earned: 2.0/2.0 Correct Answer(s): True 11. The correct order to prepare the financial statements is: 1) Balance Sheet, 2) Income Statement, 3) Statement of Cash Flows, and 4) Statement of Owner's Equity. A) True B) False Points Earned: 2.0/2.0 Correct Answer(s): False
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12. The difference between assets and liabilities is called profit. A) True B) False Points Earned: 2.0/2.0 Correct Answer(s): False 13. Which one of the following accounts normally has a credit balance? A) Cash B) Equipment C) Unearned revenue D) Prepaid rent Points Earned: 2.0/2.0 Correct Answer(s): C 14. Resources a business owns are called:
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This note was uploaded on 03/26/2011 for the course ACC 160 taught by Professor Logorda during the Spring '11 term at Lehigh Carbon CC.

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acounting_test1 - 1. Given the following T-account, what...

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