Question 1

The left side of the accounting equation must always equal the right side of the equation.

Accepted Answer

A) True 
 B)False

Question 2

If the liabilities owed by a business total $150,000,then the assets must also total $150,000.

Accepted Answer

A) True 
 B)False

Question 3

Go Blue Retail Store collected $10,000 of its accounts receivable.The expanded accounting equation changes include:

Accepted Answer

A)  Cash and Capital increase,$10,000.
B)  Cash and Revenue increase $10,000.
C)  Cash increases and Accounts Receivable decreases $10,000.
D)  Accounts Receivable decreases and Capital increases $10,000.E) A) and B)
F) B) and D)

Question 4

An acceptable variation of the accounting equation is:

Accepted Answer

A)  Assets - Owner's Equity = Liabilities.
B)  Assets + Owner's Equity = Liabilities.
C)  Assets = Liabilities - Owner's Equity.
D)  All of these answers are correct.E) A) and B)
F) None of the above

Question 5

The four parts of owner's equity include capital,withdrawals,revenue,and expenses.

Accepted Answer

A) True 
 B)False

Question 6

Logan's Motor Sports buys $50,000 of supplies on credit.Which of the following is a true statement?

Accepted Answer

A)  Total assets increase.
B)  Total assets are unchanged.
C)  Total liabilities decrease.
D)  Total liabilities are unchanged.E) A) and D)
F) A) and C)

Question 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?

Accepted Answer

A)  No effect on owner's equity
B)  Decrease of $4,000
C)  Increase of $8,000
D)  Decrease of $8,000E) A) and C)
F) C) and D)

Question 8

Which of the following items is NOT listed on the balance sheet?

Accepted Answer

A)  Accounts Payable
B)  Accounts Receivable
C)  Expense
D)  EquipmentE) B) and C)
F) None of the above

Question 9

Katelyn purchased $10,000 of new electronic equipment for her DJ Company on account.The effect on the basic accounting equation was to:

Accepted Answer

A)  decrease Cash $10,000 and increase Equipment $10,000.
B)  increase Equipment $10,000 and increase Accounts Payable $10,000.
C)  decrease Cash $10,000 and increase Accounts Payable $10,000.
D)  increase Cash $10,000 and increase Equipment $10,000.E) None of the above
F) A) and C)

Question 10

Vic's Mart collects $200 of its accounts receivable.The expanded accounting equation impact is:

Accepted Answer

A)  Cash and Capital increase $200.
B)  Cash and Revenue increase $200.
C)  Cash increases and Accounts Receivable decreases $200.
D)  Accounts Receivable decreases and Capital increases $200.E) All of the above
F) A) and B)

Question 11

If Ol' Fashioned Toys' revenues are less than its expenses during the accounting period:

Accepted Answer

A)  owner's withdrawals increase net income.
B)  net income causes liabilities to decrease.
C)  the business will incur a net loss.
D)  owner's withdrawals increase owner's equity.E) B) and D)
F) C) and D)

Question 12

A business received $3,000 from a customer in payment of an amount owed.The effect of the transaction on the accounting equation was to:

Accepted Answer

A)  increase one asset,decrease another asset.
B)  increase an asset,increase a liability.
C)  decrease an asset,decrease a liability.
D)  increase an asset,increase owner's equity.E) C) and D)
F) B) and D)

Question 13

Which of the following transactions would cause an asset to decrease and the owner's equity to decrease?

Accepted Answer

A)  The owner invested cash in the business.
B)  The business incurred an expense on credit.
C)  The business bought supplies on account.
D)  The owner withdrew cash from the business.E) C) and D)
F) A) and B)

Question 14

The type of business organization that can continue indefinitely is known as a:

Accepted Answer

A)  sole proprietorship.
B)  partnership.
C)  corporation.
D)  All of the aboveE) C) and D)
F) B) and D)

Question 15

A corporation:

Accepted Answer

A)  can continue indefinitely.
B)  is owned by stockholders.
C)  has limited risk to stockholders.
D)  All of the aboveE) A) and B)
F) A) and C)

Question 16

Which accounts are affected when the company buys supplies for cash?

Accepted Answer

A)  Assets and revenue
B)  Liabilities and Capital
C)  Assets and Liabilities
D)  None of the above is correct.E) All of the above
F) None of the above

Question 17

Which of the following is NOT an asset?

Accepted Answer

A)  Cash
B)  Accounts Receivable
C)  Accounts Payable
D)  BuildingsE) A) and B)
F) All of the above

Question 18

Calculate the total Assets if the company has: Cash $400,Accounts Receivable $200,Accounts Payable $500,Equipment $300.
$ ________

Accepted Answer

($900 = $4...

Question 19

Use the following information to prepare 1)an income statement,2)a statement of owner's equity,and 3)a balance sheet for the month ended March 31,200x for Bolthouse Company.
 $$\begin{array} { l r } 
\text { J. Bolthouse, Capital (beg.) } & \$ 2,000 \
\text { Revenue } & 1000 \
\text { Expenses } & 300 \
\text { Withdrawals } & 150 \
\text { Cash } & 3,000 \
\text { Equipment } & 1,000 \
\text { Accounts Receivable } & 150 \
\text { Accounts Payable } & 2,000
\end{array}$$

Accepted Answer

The answer of Use the following information to prepare 1)an...

Question 20

The balance sheet shows the company's financial position as of a particular date.

Accepted Answer

A) True 
 B)False

Exam 1: Accounting Concepts and Procedures

The balance sheet shows the company's financial position as of a particular date.

Correct Answer
verified

If the liabilities owed by a business total $150,000,then the assets must also total $150,000.

Correct Answer
verified

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?

Correct Answer
verified

Vic's Mart collects $200 of its accounts receivable.The expanded accounting equation impact is:

Correct Answer
verified

Go Blue Retail Store collected $10,000 of its accounts receivable.The expanded accounting equation changes include:

Correct Answer
verified

A corporation:

Correct Answer
verified

The four parts of owner's equity include capital,withdrawals,revenue,and expenses.

Correct Answer
verified

Calculate the total Assets if the company has: Cash $400,Accounts Receivable $200,Accounts Payable $500,Equipment $300. $ ________

Correct Answer
verified
($900 = $4...
View Answer

A business received $3,000 from a customer in payment of an amount owed.The effect of the transaction on the accounting equation was to:

Correct Answer
verified

Which of the following transactions would cause an asset to decrease and the owner's equity to decrease?

Correct Answer
verified

Katelyn purchased $10,000 of new electronic equipment for her DJ Company on account.The effect on the basic accounting equation was to:

Correct Answer
verified

Which of the following items is NOT listed on the balance sheet?

Correct Answer
verified

Logan's Motor Sports buys $50,000 of supplies on credit.Which of the following is a true statement?

Correct Answer
verified

The type of business organization that can continue indefinitely is known as a:

Correct Answer
verified

Which accounts are affected when the company buys supplies for cash?

Correct Answer
verified

Which of the following is NOT an asset?

Correct Answer
verified

Correct Answer
verified

An acceptable variation of the accounting equation is:

Correct Answer
verified

The left side of the accounting equation must always equal the right side of the equation.

Correct Answer
verified

If Ol' Fashioned Toys' revenues are less than its expenses during the accounting period:

Correct Answer
verified

Exam 1: Accounting Concepts and Procedures

The balance sheet shows the company's financial position as of a particular date.

Correct AnswerverifiedShow Answer

If the liabilities owed by a business total $150,000,then the assets must also total $150,000.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Vic's Mart collects $200 of its accounts receivable.The expanded accounting equation impact is:

Correct AnswerverifiedShow Answer

Go Blue Retail Store collected $10,000 of its accounts receivable.The expanded accounting equation changes include:

Correct AnswerverifiedShow Answer

A corporation:

Correct AnswerverifiedShow Answer

The four parts of owner's equity include capital,withdrawals,revenue,and expenses.

Correct AnswerverifiedShow Answer

Calculate the total Assets if the company has: Cash $400,Accounts Receivable $200,Accounts Payable $500,Equipment $300. $ ________

Correct Answerverified($900 = $4...View AnswerShow Answer

A business received $3,000 from a customer in payment of an amount owed.The effect of the transaction on the accounting equation was to:

Correct AnswerverifiedShow Answer

Which of the following transactions would cause an asset to decrease and the owner's equity to decrease?

Correct AnswerverifiedShow Answer

Katelyn purchased $10,000 of new electronic equipment for her DJ Company on account.The effect on the basic accounting equation was to:

Correct AnswerverifiedShow Answer

Which of the following items is NOT listed on the balance sheet?

Correct AnswerverifiedShow Answer

Logan's Motor Sports buys $50,000 of supplies on credit.Which of the following is a true statement?

Correct AnswerverifiedShow Answer

The type of business organization that can continue indefinitely is known as a:

Correct AnswerverifiedShow Answer

Which accounts are affected when the company buys supplies for cash?

Correct AnswerverifiedShow Answer

Which of the following is NOT an asset?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An acceptable variation of the accounting equation is:

Correct AnswerverifiedShow Answer

The left side of the accounting equation must always equal the right side of the equation.

Correct AnswerverifiedShow Answer

If Ol' Fashioned Toys' revenues are less than its expenses during the accounting period:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
($900 = $4...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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