Reference no: EM131138602

Question 1

Ryan withdrew cash from the business to pay his personal cell phone bill. The expanded accounting equation changes include __________.
A. increase in both cash and withdrawal
B. decrease in both cash and withdrawal
C. decrease in cash and increase in withdrawal
D. increase in cash and decrease in withdrawal

Question 2

Which of the following items are on both the balance sheet and the statement of owner's equity?
A. Net loss
B. Capital
C. Additional owner's investments
D. Owner's withdrawals

Question 3

BPK Industries has a net income for the period of $2,500. The balance in the Owner's Capital account for the beginning of the period is $5,000 and the owner has withdrawn $1,650 for personal expenses. The balance in the Owner's Capital account at the end of the period will be __________.
A. $5,850
B. $7,500
C. $850
D. $9,150

Question 4

If beginning capital was $110,000, ending capital is $95,000, and the owner's withdrawals were $10,000, the amount of net income or net loss was __________.
A. net income of $5,000
B. net income of $15,000
C. net loss of $15,000
D. net loss of $5,000

Question 5

A company has $4,500 in its Revenue account at the end of a period. The Expenses are as follows: Rent, $750; Utilities, $150; Salaries, $2,400; Insurance, $225. The net income (loss. for the period is __________.
A. $3,600
B. ($2,100.
C. $975
D. ($1,425.

Question 6

The financial statement that shows business results in terms of revenue and expenses is __________.
A. an income statement
B. a balance sheet
C. a statement of owner's equity
D. the statement of cash flows

Question 7

Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes include __________.
A. cash and capital increase, $12,000
B. cash and revenue increase, $12,000
C. cash increases and accounts receivable decreases $12,000
D. accounts receivable decreases and capital increases $12,000

Question 8

When services are rendered but payment is not made, which account would be increased?
A. accounts receivable
B. accounts payable
C. cash
D. withdrawal

Question 9

Which of the following is not one of the four basic financial statements?
A. Statement of Cash Flows
B. Income Statement
C. Statement of Company Position
D. Balance Sheet

Question 10

An expense should be recorded when __________.
A. the bill is paid
B. the expense is incurred
C. a bill is received in the mail
D. None of the above answers are correct.

Question 11

Vic's Mart collects $700 of its accounts receivable. The expanded accounting equation impact is __________.
A. cash and capital increase $700
B. cash and revenue increase $700
C. cash increases and accounts receivable decreases $700
D. accounts receivable decreases and capital increases $700

Question 12

The net income or net loss is calculated on the __________.
A. balance sheet
B. statement of owner's equity
C. income statement
D. None of the above answers are correct.

Question 13

Which statement is prepared for only one date?
A. Income Statement
B. Statement of Cash Flows
C. Balance Sheet
D. Statement of Owner's Equity

Question 14

The statement of owner's equity contains the __________.
A. owner's capital for the beginning of the period
B. liabilities of the company
C. total amount owed by credit customers
D. balance in the cash account

Question 15

Which of the following transactions has no effect on owner's equity?
A. paying salaries expense
B. equipment purchase
C. billing for services rendered
D. a withdrawal

Question 16

Expenses __________.
A. are costs the company incurs in carrying on operations
B. are a subdivision of owner's equity
C. record personal expenses not related to the business
D. Both A and B are correct.

Question 17

Which of the following is included in the balance sheet?
A. revenue
B. salaries expense
C. utilities expense
D. accounts payable

Question 18

Which financial statement is prepared first?
A. Statement of Owner's Equity
B. Balance Sheet
C. Income Statement
D. None of the above

Question 19

A revenue should be recorded when __________.
A. it is earned
B. payment is received
C. the invoice is sent to the customer
D. None of the above answers are correct.

Question 20

Which accounts are affected when the company buys supplies on account?
A. assets and capital
B. liabilities and capital
C. assets and liabilities
D. None of the above answers are correct.