Question 1

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Paid wages

Accepted Answer

A)  Increase assets, increase liabilities
B)  Increase liabilities, decrease owner's equity
C)  Increase assets, increase owner's equity
D)  No effect
E)  Decrease assets, decrease liabilitiesF) Decrease assets, decrease owner's equityG) B) and D)
H) A) and C)

Question 2

Darnell Company purchased $88,000 of computer equipment from Joseph Company. Darnell Company paid for the equipment using cash that had been obtained from the initial investment by Donnie Darnell.​Which entity or entities 
(Darnell Company, Joseph Company, and Donnie Darnell) should record the transaction involving the computer equipment on their accounting records?

Accepted Answer

Darnell Co...

Question 3

Earning revenue

Accepted Answer

A)   increases assets, increases owner's equity
B)   increases assets, decreases owner's equity
C)   increases one asset, decreases another asset
D)   decreases assets, increases liabilitiesE) B) and D)
F) None of the above

Question 4

Which type of accountant typically practices as an individual or as a member of a public accounting firm?

Accepted Answer

A)   Certified Public Accountant
B)   Certified Payroll Professional
C)   Certified Internal Auditor
D)   Certified Management AccountantE) A) and B)
F) A) and C)

Question 5

There are four transactions that affect owner's equity.​
(a) What are the two types of transactions that increase owner's equity?
(b) What are the two types of transactions that decrease owner's equity?

Accepted Answer

(a) Additional investment by t...

Question 6

On May 7, Carpet Barn Company offered to pay $83,000 for land that had a selling price of $105,000. On May 15, Carpet Barn accepted a counteroffer of $95,000. On June 5, the land was assessed at a value of $115,000 for property tax purposes. On December 10, Carpet Barn Company was offered $135,000 for the land by another company. At what value should the land be recorded in Carpet Barn Company's records?

Accepted Answer

The answer of On May 7, Carpet Barn Company offered...

Question 7

Match each of the following characteristics with the financial statement that best describes it. Each may be used more than once.
-Reports as of a specific date

Accepted Answer

A)  Income statement
B)  Balance sheet
C)  Statement of owner's equity
D)  Statement of cash flowsE) A) and B)
F) B) and D)

Question 8

Explain the interrelationship between the balance sheet and the statement of cash flows.

Accepted Answer

The cash reported on the balan...

Question 9

Identify each of the following as an  (1) increase to owner's equity or a  (2) decrease to owner's equity.
(a)Fees earned
(b)Wages expense
(c)Withdrawals
(d)Lawn care revenue
(e)Investment
(f)Supplies expense

Accepted Answer

(a)1
(b)2
...

Question 10

Which of the following asset accounts is increased when a receivable is collected?

Accepted Answer

A)   Accounts Receivable
B)   Supplies
C)   Accounts Payable
D)   CashE) All of the above
F) A) and C)

Question 11

The excess of revenue over the expenses incurred in earning the revenue is called capital.

Accepted Answer

A) True 
 B)False

Question 12

Many countries outside the United States use financial accounting standards issued by the

Accepted Answer

A)   AICPA
B)   SEC
C)   IASB
D)   FASBE) B) and C)
F) None of the above

Question 13

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Cash investment by owner

Accepted Answer

A)  Increase assets, increase liabilities
B)  Increase liabilities, decrease owner's equity
C)  Increase assets, increase owner's equity
D)  No effect
E)  Decrease assets, decrease liabilitiesF) Decrease assets, decrease owner's equityG) A) and E)
H) All of the above

Question 14

If net income for a proprietorship was $50,000, the owner withdrew $20,000 in cash, and the owner invested $10,000 in cash, the capital of the owner increased by $40,000.

Accepted Answer

A) True 
 B)False

Question 15

The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of owners.

Accepted Answer

A) True 
 B)False

Question 16

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Purchased equipment for cash

Accepted Answer

A)  Increase assets, increase liabilities
B)  Increase liabilities, decrease owner's equity
C)  Increase assets, increase owner's equity
D)  No effect
E)  Decrease assets, decrease liabilitiesF) Decrease assets, decrease owner's equityG) D) and F)
H) A) and B)

Question 17

Which of the following is not a business transaction?

Accepted Answer

A)   Erin deposits $15,000 in a bank account in the name of Erin's Lawn Service.
B)   Erin provided services to customers earning fees of $600.
C)   Erin purchased hedge trimmers for her lawn service agreeing to pay the supplier next month.
D)   Erin pays her monthly personal credit card bill.E) B) and C)
F) A) and C)

Question 18

The business entity concept means that

Accepted Answer

A)   the owner is part of the business entity
B)   an entity is organized according to state or federal statutes
C)   an entity is organized according to the rules set by the FASB
D)   the entity is an individual economic unit for which data are recorded, analyzed, and reportedE) A) and C)
F) B) and C)

Question 19

Transactions affecting owner's equity include

Accepted Answer

A)   owner's investments and payment of liabilities
B)   owner's investments, owner's withdrawals, earning of revenues, and incurrence of expenses
C)   owner's investments, earning of revenues, incurrence of expenses, and collection of accounts receivable
D)   owner's withdrawals, earning of revenues, incurrence of expenses, and purchase of supplies on accountE) All of the above
F) A) and D)

Question 20

Match the following business types with each business listed below. Each may be used more than once.
-A tax preparation firm

Accepted Answer

A)  Service business
B)  Manufacturing business
C)  Merchandising businessD) A) and B)
E) A) and C)

Exam 1: Introduction to Accounting and Business

The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of owners.

Correct Answer
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The business entity concept means that

Correct Answer
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Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Cash investment by owner

Correct Answer
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Which of the following asset accounts is increased when a receivable is collected?

Correct Answer
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Correct Answer
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Match each of the following characteristics with the financial statement that best describes it. Each may be used more than once. -Reports as of a specific date

Correct Answer
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If net income for a proprietorship was $50,000, the owner withdrew $20,000 in cash, and the owner invested $10,000 in cash, the capital of the owner increased by $40,000.

Correct Answer
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Earning revenue

Correct Answer
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Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Purchased equipment for cash

Correct Answer
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Correct Answer
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Darnell Co...
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Identify each of the following as an (1) increase to owner's equity or a (2) decrease to owner's equity. (a)Fees earned (b)Wages expense (c)Withdrawals (d)Lawn care revenue (e)Investment (f)Supplies expense

Correct Answer
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(a)1
(b)2
...
View Answer

Many countries outside the United States use financial accounting standards issued by the

Correct Answer
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Explain the interrelationship between the balance sheet and the statement of cash flows.

Correct Answer
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The cash reported on the balan...
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The excess of revenue over the expenses incurred in earning the revenue is called capital.

Correct Answer
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Transactions affecting owner's equity include

Correct Answer
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Which of the following is not a business transaction?

Correct Answer
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Which type of accountant typically practices as an individual or as a member of a public accounting firm?

Correct Answer
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There are four transactions that affect owner's equity. (a) What are the two types of transactions that increase owner's equity? (b) What are the two types of transactions that decrease owner's equity?

Correct Answer
verified
(a) Additional investment by t...
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Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Paid wages

Correct Answer
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Match the following business types with each business listed below. Each may be used more than once. -A tax preparation firm

Correct Answer
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Exam 1: Introduction to Accounting and Business

The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of owners.

Correct AnswerverifiedShow Answer

The business entity concept means that

Correct AnswerverifiedShow Answer

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Cash investment by owner

Correct AnswerverifiedShow Answer

Which of the following asset accounts is increased when a receivable is collected?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Match each of the following characteristics with the financial statement that best describes it. Each may be used more than once. -Reports as of a specific date

Correct AnswerverifiedShow Answer

If net income for a proprietorship was $50,000, the owner withdrew $20,000 in cash, and the owner invested $10,000 in cash, the capital of the owner increased by $40,000.

Correct AnswerverifiedShow Answer

Earning revenue

Correct AnswerverifiedShow Answer

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Purchased equipment for cash

Correct AnswerverifiedShow Answer

Correct AnswerverifiedDarnell Co...View AnswerShow Answer

Identify each of the following as an (1) increase to owner's equity or a (2) decrease to owner's equity. (a)Fees earned (b)Wages expense (c)Withdrawals (d)Lawn care revenue (e)Investment (f)Supplies expense

Correct Answerverified(a)1(b)2...View AnswerShow Answer

Many countries outside the United States use financial accounting standards issued by the

Correct AnswerverifiedShow Answer

Explain the interrelationship between the balance sheet and the statement of cash flows.

Correct AnswerverifiedThe cash reported on the balan...View AnswerShow Answer

The excess of revenue over the expenses incurred in earning the revenue is called capital.

Correct AnswerverifiedShow Answer

Transactions affecting owner's equity include

Correct AnswerverifiedShow Answer

Which of the following is not a business transaction?

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Which type of accountant typically practices as an individual or as a member of a public accounting firm?

Correct AnswerverifiedShow Answer

There are four transactions that affect owner's equity.​ (a) What are the two types of transactions that increase owner's equity? (b) What are the two types of transactions that decrease owner's equity?

Correct Answerverified(a) Additional investment by t...View AnswerShow Answer

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Paid wages

Correct AnswerverifiedShow Answer

Match the following business types with each business listed below. Each may be used more than once. -A tax preparation firm

Correct AnswerverifiedShow Answer

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Darnell Co...
View Answer

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(a)1
(b)2
...
View Answer

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Correct Answer
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The cash reported on the balan...
View Answer

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Correct Answer
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Correct Answer
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There are four transactions that affect owner's equity. (a) What are the two types of transactions that increase owner's equity? (b) What are the two types of transactions that decrease owner's equity?

Correct Answer
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(a) Additional investment by t...
View Answer

Correct Answer
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Correct Answer
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