A01V Exam 2 Answers Attempt 1 - Ashworth

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A01V Introduction to Accounting Exam 2 Answers Attempt 1 (Ashworth)

Lesson 2

Question 1

5 / 5 points

The increase or decrease in the owner's equity is reported on the __________.

Question options:

	income statement
	statement of owner's equity
	balance sheet
	All of these answers are correct.
Question 2		5 / 5 points

Larry’s Landscaping has total liabilities of $1,650 and assets of $2,500. The amount of the owner’s equity is __________.

Question options:

	$4,150
	$2,500
	$850
	$1,650
Question 3		5 / 5 points

Which of the following is not one of the four basic financial statements?

Question options:

	Statement of Cash Flows
	Income Statement
	Statement of Company Position
	Balance Sheet
Question 4		5 / 5 points

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 __________.

Question options:

	net income of $5,000
	net income of $15,000
	net loss of $15,000
	net loss of $5,000
Question 5		5 / 5 points

A company has the following balances in its asset accounts: Cash, $750; Accounts Receivable, $125; Equipment, $2,000; Supplies, $875. The amount of the company’s total assets is __________.

Question options:

	$875
	$1,750
	$2,875
	$3,750
Question 6		5 / 5 points

When services are rendered but payment is not made, which account would be increased?

Question options:

	accounts receivable
	accounts payable
	cash
	withdrawal
Question 7		5 / 5 points

Which of the following items are on both the balance sheet and the statement of owner's equity?

Question options:

	Net loss
	Capital
	Additional owner's investments
	Owner's withdrawals
Question 8		5 / 5 points

The financial statement that shows business results in terms of revenue and expenses is __________.

Question options:

	an income statement
	a balance sheet
	a statement of owner's equity
	the statement of cash flows
Question 9		0 / 5 points

Expenses __________.

Question options:

	are costs the company incurs in carrying on operations
	are a subdivision of owner's equity
	record personal expenses not related to the business
	Both A and B are correct.
Question 10		5 / 5 points

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 The balance in the Owner’s Capital account for the beginning of the period is $5,000 and the owner has withdrawn $1,650 for personal expenses.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 __________.

Question options:

	$5,850
	$7,500
	$850
	$9,150
Question 11		5 / 5 points

The financial statement that shows revenue and expenses for a period of time is the __________.

Question options:

	balance sheet
	income statement
	statement of owner's equity
	statement of cash flows
Question 12		5 / 5 points

If 'Ol Fashioned Toys' revenues are less than its expenses during the accounting period, then __________.

Question options:

	owner's withdrawals decrease net income
	net income causes liabilities to decrease
	the business will incur a loss
	owner's withdrawals increase owner's equity
Question 13		5 / 5 points

An accounting report that shows the changes in capital during the accounting period is __________.

Question options:

	a balance sheet
	an income statement
	a statement of owner's equity
	All of these answers are correct.
Question 14		5 / 5 points

Which financial statement is considered a link between the income statement and balance sheet?

Question options:

	Statement of Cash Flows
	Statement of Company Assets
	Statement of Company Liquidity
	Statement of Owner’s Equity
Question 15		5 / 5 points

If a company's revenues are higher than its expenses, it will cause __________.

Question options:

	an increase in owner's equity
	a decrease in owner's equity
	an increase in assets
	no effect on owner's equity
Question 16		5 / 5 points

Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes include __________.

Question options:

	cash and capital increase, $12,000
	cash and revenue increase, $12,000
	cash increases and accounts receivable decreases $12,000
	accounts receivable decreases and capital increases $12,000
Question 17		0 / 5 points

Which of the following is included in the balance sheet?

Question options:

	revenue
	salaries expense
	utilities expense
	accounts payable
Question 18		5 / 5 points

Carrie billed her legal clients $6,000 for legal work completed during the month. This transaction will __________.

Question options:

	cause a $6,000 increase in revenues and liabilities
	cause a $6,000 increase in revenues and a decrease in liabilities
	cause a $6,000 increase in assets and revenues
	not be recorded until the cash is collected
Question 19		5 / 5 points

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 __________.

Question options:

	$3,600
	($2,100.
	$975
	($1,425.
Question 20		5 / 5 points

The net income or net loss is calculated on the __________.

Question options:

	balance sheet
	statement of owner's equity
	income statement
	None of the above answers are correct.