A01V Exam 2 Answers Attempt 2 - Ashworth

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

Question 1

5 / 5 points

Ryan withdrew cash from the business to pay his personal cell phone bill. The expanded accounting equation changes include __________.

Question options:

	increase in both cash and withdrawal
	decrease in both cash and withdrawal
	decrease in cash and increase in withdrawal
	increase in cash and decrease in withdrawal
Question 2		5 / 5 points

Which accounts are affected when the company buys supplies on account?

Question options:

	assets and capital
	liabilities and capital
	assets and liabilities
	None of the above answers are correct.
Question 3		5 / 5 points

Which of the following transactions has no effect on owner's equity?

Question options:

	paying salaries expense
	equipment purchase
	billing for services rendered
	a withdrawal
Question 4		5 / 5 points

A revenue should be recorded when __________.

Question options:

	it is earned
	payment is received
	the invoice is sent to the customer
	None of the above answers are correct.
Question 5		5 / 5 points

Which statement is prepared for only one date?

Question options:

	Income Statement
	Statement of Cash Flows
	Balance Sheet
	Statement of Owner’s Equity
Question 6		5 / 5 points

The payment of accounts payable would __________.

Question options:

	increase both assets and liabilities
	increase assets and decrease liabilities
	decrease both assets and liabilities
	decrease assets and increase liabilities
Question 7		5 / 5 points

An expense should be recorded when __________.

Question options:

	the bill is paid
	the expense is incurred
	a bill is received in the mail
	None of the above answers are correct.
Question 8		5 / 5 points

Vic's Mart collects $700 of its accounts receivable. The expanded accounting equation impact is __________.

Question options:

	cash and capital increase $700
	cash and revenue increase $700
	cash increases and accounts receivable decreases $700
	accounts receivable decreases and capital increases $700
Question 9		5 / 5 points

Which of the following statements is prepared first?

Question options:

	Statement of Owner's Equity
	Balance Sheet
	Income Statement
	None of the above
Question 10		5 / 5 points

The statement of owner’s equity contains the __________.

Question options:

	owner’s capital for the beginning of the period
	liabilities of the company
	total amount owed by credit customers
	balance in the cash account
Question 11		5 / 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 12		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 13		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 14		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 15		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 16		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.
Question 17		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 18		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 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

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

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