Question 1 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
When a business borrows money, it incurs a(n):<\/p>\n
A. tax.<\/p>\n
B. liability.<\/p>\n
C. receivable.<\/p>\n
D. additional equity.<\/p>\n
Question 2 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
Paying expenses affects which financial statement elements?<\/p>\n
A. Assets only<\/p>\n
B. Stockholders\u2019 equity only<\/p>\n
C. Assets and stockholders\u2019 equity<\/p>\n
D. Assets and liabilities<\/p>\n
Question 3 of 20<\/p>\n
0.0\/ 5.0 Points<\/p>\n
Anthony, Inc. buys land for $50,000 cash. The net effect on assets is:<\/p>\n
A.$50,000 increase.<\/p>\n
B.$0.<\/p>\n
C.$50,000 decrease.<\/p>\n
D.$25,000 increase.<\/p>\n
Question 4 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
The basic financial statements do not include the:<\/p>\n
A. income statement.<\/p>\n
B. tax return.<\/p>\n
C. balance sheet.<\/p>\n
D. statement of cash flows.<\/p>\n
Question 5 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
The branch of accounting related to the management’s financial decisions is known as financial accounting.<\/p>\n
A. True<\/p>\n
B. False<\/p>\n
Question 6 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
The role of accounting in business is best defined as:<\/p>\n
A. an information system that provides reports to stakeholders about the economic activities and condition of a business.<\/p>\n
B.a method of forecasting the future profitability of a company.<\/p>\n
C.the policies, procedures, and strategies used in a business.<\/p>\n
D.transaction analysis.<\/p>\n
Question 7 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
The basic type of stock issued to owners is called common stock.<\/p>\n
A. True<\/p>\n
B. False<\/p>\n
Question 8 of 20<\/p>\n
0.0\/ 5.0 Points<\/p>\n
Any given transaction must affect at least two different parts of the accounting equation.<\/p>\n
A. True<\/p>\n
B. False<\/p>\n
Question 9 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
A to Z Corporation issued a $30,000 note payable to borrow cash from the bank. On the Statement of Cash Flows, the transaction would be classified as:<\/p>\n
A. Cash Flows from Operating Activities.<\/p>\n
B. Cash Flows from Investing Activities.<\/p>\n
C. Cash Flows from Financing Activities.<\/p>\n
D. Noncash transaction.<\/p>\n
Question 10 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
Reporting the financial condition of a business at a point in time and the changes in the financial condition of a business over a period of time are the two major objectives of:<\/p>\n
A. tax accounting.<\/p>\n
B. union contracts.<\/p>\n
C. managerial accounting.<\/p>\n
D. financial accounting.<\/p>\n
Question 11 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
Assets are acquired through investing activities when resources are purchased.<\/p>\n
A. True<\/p>\n
B. False<\/p>\n
Question 12 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
Including all relevant data a reader needs to understand the financial condition and performance of a business refers to which concept?<\/p>\n
A. Adequate disclosure concept<\/p>\n
B. Going concern concept<\/p>\n
C. Objectivity concept<\/p>\n
D. Business entity concept<\/p>\n
Question 13 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
The effect of every transaction is an increase or a decrease in one or more of the accounting equation elements.<\/p>\n
A. True<\/p>\n
B. False<\/p>\n
Question 14 of 20<\/p>\n
0.0\/ 5.0 Points<\/p>\n
When an account receivable is collected in cash, the total assets of the business increase.<\/p>\n
A. True<\/p>\n
B. False<\/p>\n
Question 15 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
The balance sheet represents the accounting equation.<\/p>\n
A. True<\/p>\n
B. False<\/p>\n
Question 16 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
Buying equipment for cash affects which account\/accounts?<\/p>\n
A. Cash only<\/p>\n
B. Retained earnings only<\/p>\n
C. Equipment and retained earnings<\/p>\n
D. Cash and equipment<\/p>\n
Question 17 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
Which of the following is an appropriate representation of the accounting equation?<\/p>\n
A. Assets + Liabilities = Stockholders\u2019 equity<\/p>\n
B. Assets = Liabilities + Stockholders\u2019 equity<\/p>\n
C. Assets = Liabilities<\/p>\n
D. Assets = Liabilities + Retained earnings<\/p>\n
Question 18 of 20<\/p>\n
5.0\/ 5.0 Points<\/p>\n
Which of the following is not considered to be a liability?<\/p>\n
A. Note payable<\/p>\n
B. Accounts receivable<\/p>\n
C. Unearned revenues<\/p>\n
D. Accounts payable<\/p>\n
Question 19 of 20<\/p>\n
0.0\/ 5.0 Points<\/p>\n
The first month of operation showed the net cash from operating activities to be $3,760, the net cash from investing activities to be ($5,415), and the ending cash balance to be $3,425. The net cash from financing activities must be:<\/p>\n
A.$1,770.<\/p>\n
B.$5,080.<\/p>\n
C.$5,750.<\/p>\n
D.$12,600.<\/p>\n
Question 20 of 20<\/p>\n
0.0\/ 5.0 Points<\/p>\n
Which principle determines the amount initially entered into the records for purchases?<\/p>\n
A. Cost principle<\/p>\n
B. Going concern concept<\/p>\n
C. Business entity concept<\/p>\n
D. Objectivity concept<\/p>\n","protected":false},"excerpt":{"rendered":"
Question 1 of 20 5.0\/ 5.0 Points When a business borrows money, it incurs a(n): A. tax. B. liability. C. receivable. D. additional equity. Question 2 of 20 5.0\/ 5.0 Points Paying expenses affects which financial statement elements? A. Assets Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-71842","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/71842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=71842"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/71842\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=71842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=71842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=71842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}