ACC101_P3

a

QN= 67 If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have: a. Increased $22,000. b. Decreased $22,000. c. Increased $89,000. d. Decreased $156,000. e. Increased $156,000.

c

QN=52 The difference between a company's assets and its liabilities, or net assets is: a. Net income. b. Expense. c. Equity. d. Revenue. e. Net loss.

e

QN=53 Creditors' claims on the assets of a company are called: a. Net losses. b. Expenses. c. Revenues. d. Equity. e. Liabilities.

c

QN=56 Another name for equity is: a. Net income. b. Expenses. c. Net asset. d. Revenue. e. Net loss.

b

QN=70 If assets are $365,000 and equity is $120,000, then liabilities are: a. $120,000. b. $245,000. c. $365,000. d. $485,000. e. $610,000.

a

QN=75 Flash had cash inflows from operations $62,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was: a. $40,500 increase. b. $40,500 decrease. c. $134,500 decrease. d. $134,000 increase. e. $9,500 increase.

b

QN=51 Gross increases in equity from a company's earnings activities are: a. Assets. b. Revenues. c. Liabilities. d. Owner's Equity. e. Expenses.

d

QN=61 On June 30 of the current year, the assets and liabilities of Phoenix Phildell are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of July 1 of the current year? a. $8,300 b. $13,050 c. $20,500 d. $31,100 e. $40,400

b

QN=62 Assets created by selling goods and services on credit are: a. Accounts payable. b. Accounts receivable. c. Liabilities. d. Expenses e. Equity.

d

QN=63 How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed? a. +$10,000 accounts receivable, -$10,000 accounts payable. b. +$10,000 accounts receivable, +$10,000 accounts payable. c. +$10,000 accounts receivable, +$10,000 cash. d. +$10,000 accounts receivable, +$10,000 revenue. e. +$10,000 accounts receivable, -$10,000 revenue.

e

QN=57 Which of the following statements is true about assets? a. They are economic resources owned or controlled by the business. b. They are expected to provide future benefits to the business. c. They appear on the balance sheet. d. Claims on them can be shared between creditors and owners. e. All of these.

b

QN=58 A payment to an owner for personal use is called a(n): a. Liability. b. Withdrawal. c. Expense. d. Contribution. e. Investment.

a

QN=59 Distributions by a business to its owners are called: a. Withdrawals. b. Expenses. c. Assets. d. Retained earnings. e. Net Income.

c

QN=60 The assets of a company total $700,000; the liabilities, $200,000. What are the claims of the owners? a. $900,000. b. $700,000. c. $500,000. d. $200,000. e. It is impossible to determine unless the amount of this owners' investment is known.

b

QN=73 A company acquires equipment for $75,000 cash. This represents a(n): a. Operating activity. b. Investing activity. c. Financing activity. d. Revenue activity. e. Expense activity.

d

QN=54 Decreases in equity that represent costs of assets or services used to earn revenues are called: a. Liabilities. b. Equity. c. Withdrawals. d. Expenses. e. Owner's Investment.

b

QN=55 The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the: a. Income statement equation. b. Accounting equation. c. Business equation. d. Net income. e. Trial balance. f. Balance sheet.

e

QN=64 Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation? a. Assets increase by $75,000 and expenses increase by $75,000. b. Assets increase by $75,000 and expenses decrease by $75,000. c. Liabilities increase by $75,000 and expenses decrease by $75,000. d. Assets decrease by $75,000 and expenses decrease by $75,000. e. Assets increase by $75,000 and liabilities increase by $75,000.

c

QN=65 Viscount Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are: a. Total assets decrease and equity increases. b. Both total assets and total liabilities decrease. c. Total assets, total liabilities, and equity are unchanged. d. Both total assets and equity are unchanged and liabilities increase. e. Total assets increase and equity decreases.

d

QN=66 If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same period, the assets of then business must have: a. Decreased $105,000. b. Decreased $45,000. c. Increased $30,000. d. Increased $45,000. e. Increased $105,000.

a

QN=68 If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets? a. Assets would have increased $55,000. b. Assets would have decreased $55,000. c. Assets would have increased $19,000. d. Assets would have decreased $19,000. e. None of these.

c

QN=69 If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity? a. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000. b. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000. c. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change. d. There would be no effect on the accounts because the accounts are affected by the same amount. e. None of these.

d

QN=71 The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called: a. A Balance sheet. b. A Statement of owner's equity. c. A Statement of cash flows. d. An Income statement. e. A Statement of financial position.

c

QN=72 A balance sheet lists: a. The types and amounts of the revenues and expenses of a business. b. Only the information about what happened to equity during a time period. c. The types and amounts of assets, liabilities, and equity of a business as of a specific date. d. The inflows and outflows of cash during the period. e. The assets and liabilities of a company but not the owner's equity.

c

QN=74 A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash. This represents a(n): a. Operating activity. b. Investing activity. c. Financing activity. d. Revenue activity. e. Expense activity.