Module 1 Practice Quiz

If Liabilities are $200,000 and Stockholders' Equity is $900,000, what is Assets? $

$1,100,000

What are the total assets for the period?

$13,000

If Assets are $250,000 and Stockholders' Equity is $100,000, what are Liabilities? $

$150,000

What is the Retained Earnings at the end of the period?

$3,000

What is the net income for the period?

$3,000

What are the total liabilities for the period?

$4,000

What is Common Stock at the end of the period?

$6,000

A company sells stock for $5,000 . What is the effect on the overall accounting equation?

1) Assets: INCREASE 2) Liabilities: NO EFFECT 3) Stockholders' Equity: INCREASE 4) Common Stock: INCREASE 5) Revenues: NO EFFECT 6) Expenses: NO EFFECT 7) Dividends: NO EFFECT

Speedy Delivery Service, Inc. delivered a package and received $45 cash . What is the effect on the overall accounting equation?

1) Assets: INCREASE 2) Liabilities: NO EFFECT 3) Stockholders' Equity: INCREASE 4) Common Stock: NO EFFECT 5) Revenues: INCREASE 6) Expenses: NO EFFECT 7) Dividends: NO EFFECT

A company purchases land with cash for $15,000 . What is the effect on the overall accounting equation?

1) Assets: NO EFFECT 2: Liabilities: NO EFFECT 3) Stockholders' Equity: NO EFFECT 4) Common Stock: NO EFFECT 5) Revenues: NO EFFECT 6) Expenses: NO EFFECT 7) Dividends: NO EFFECT

Speedy Delivery Service, Inc. received a bill for utilities, $300, which it will pay at the end of the month . What is the effect on the overall accounting equation?

1) Assets: NO EFFECT 2) Liabilities: INCREASE 3) Stockholders' Equity: DECREASE 4) Common Stock: NO EFFECT 5) Revenues: NO EFFECT 6) Expenses: INCREASE 7) Dividends: NO EFFECT

A customer pays of $60 dollars on his account. What is the effect on the overall accounting equation?

1) Assets: NO EFFECT 2) Liabilities: NO EFFECT 3) Stockholders' Equity: NO EFFECT 4) Common Stock: NO EFFECT 5) Revenues: NO EFFECT 6) Expenses: NO EFFECT 7) Dividends: NO EFFECT

Accounts Payable would appear on the _____ and Common Stock would appear on the _____

Balance Sheet, Balance Sheet

Cash would appear on the _____ and Service Revenue would appear on the _____

Balance Sheet, Income Statement

Common Stock would be classified as: _____ , and Wages Payable would be classified as: _____

Common Stock, Liability

Fees Earned would be classified as: _____ , and Furniture would be classified as _____

Revenue, Asset