College Accounting Chapter 2

If during the year total assets increase by $83,000 and total liabilities decrease by $20,000, by how much did owner's equity increase/decrease? $103,000 decrease $83,000 increase $103,000 increase $63,000 decrease

$103,000 increase

The Daniel Insurance Agency reported revenues of $29,000 and expenses of $31,000 for the current period. What was the final figure reported on the company's income statement? $31,000 net loss $2,000 net income $29,000 net income $2,000 net loss

$2,000 net loss

At the end of the first month of operations for Jackson's Catering Service, the business had the following accounts: Cash, $21,000; Prepaid Rent, $500; Equipment, $7,500 and Accounts Payable $4,000. By the end of the month, Jackson's had earned $32,000 of Revenues, and used $1,800 of Utilities Expenses, $4,000 of Rent Expense and $3,600 of Salaries Expenses. Calculate the net income to be reported by the company for this first month. $32,000 $22,600 $23,100 $26,200

$22,600

At the end of the first month of operations for Jackson's Catering Service, the business had the following accounts: Cash, $20,550; Prepaid Rent, $500; Equipment, $7,500 and Accounts Payable $4,000. By the end of the month, Jackson's had earned $41,450 of Revenues, and used $3,060 of Utilities Expenses, $6,700 of Rent Expense and $4,320 of Salaries Expenses. Calculate the net income to be reported by the company for this first month. $27,870 $41,450 $31,690 $27,370

$27,370

If the following are the only accounts of Jones Supply Company, what is the missing Supplies balance? Cash: $8,000 Supplies: ????? Accounts Payable: $4,000 John Smith, Capital: $9,000 $21,000 $13,000 $3,000 $5,000

$5,000

At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $11,350; Prepaid Insurance, $400; Equipment, $26,200 and Cash, $21,650. On the same date, SloMo owed the following creditors: Simpson Supply Company, $17,000; Allen Office Equipment, $14,500.The total assets for the SloMo Delivery Service are: $59,600 $21,650 $33,000 $33,400

$59,600

Pepper Company reported revenues of $12,000, supplies expense of $3,000, and net income of $2,000 for the most recent period. If the company's only other expense was Rent Expense, what was its balance at the end of the period? $15,000 $7,000 $9,000 $14,000

$7,000

Identify the account below that is classified as an asset account and would therefore appear on the left side of the accounting equation. Accounts Receivable. Accounts Payable. Fees Income. Owner's Capital.

Accounts Receivable.

Which financial statement is a representation of the accounting equation? Income Statement Statement of Owner's Equity Profit and Loss Statement Balance Sheet

Balance Sheet

Which financial statement is reported as of a specific date? Balance Sheet Statement of Owner's Equity Statement of Changes in Financial Position Income Statement

Balance Sheet

If the income statement covered a six-month period ending on November 30, 2019, the third line of the income statement heading would read: Six-month Period Ended November 30, 2019. Month Ended November 30, 2019. Month of November, 2019. November 30, 2019.

Six-month Period Ended November 30, 2019.

When equipment is purchased on credit, assets and liabilities increase. assets increase and liabilities decrease. assets and expenses increase. assets and owner's equity increase.

assets and liabilities increase.

When rent is prepaid, which of the following occurs? liabilities increase owner's equity decreases assets increase assets are unchanged

assets are unchanged

When the owner withdraws cash for personal use, assets decrease and expenses increase. owner's equity decreases and revenue decreases. assets decrease and owner's equity increases. assets decrease and owner's equity decreases.

assets decrease and owner's equity decreases.

If a business receives $5,000 on account from clients who owed money for services previously billed, identify the effect on the accounting equation: liabilities decrease and owner's equity decreases. owner's equity increases and revenue increases. assets remain the same and owner's equity remains the same. assets decrease and liabilities increase.

assets remain the same and owner's equity remains the same.

When analyzing the effect of a business transaction, which of the following is not a step taken to describe the financial event? identify who owns the property determine the amount of the increase or decrease identify the property determine the location of the property

determine the location of the property

The Balance Sheet heading includes each of the following except: date of the report. firm's address. title of the report. firm's name.

firm's address.

In a business transaction, when revenue increases, owner's equity will ___________. increase remain unchanged decrease either increase or decrease

increase

Ginger Yale Ice Company receives money from a customer on account. Recording this transaction will: decrease Accounts Payable. increase Accounts Receivable. decrease G. Yale, Capital. increase Cash.

increase Cash.

The financial interest of the owner in a business is called __________. accounts receivable owner's equity liabilities assets

owner's equity

Which of these accounts would appear on a firm's income statement? assets and liabilities liabilities and expenses revenues and expenses assets and revenues

revenues and expenses

The __________ reports the changes that have occurred in the owner's financial interest during the reporting period. income statement balance sheet statement of owner's equity profit and loss statement

statement of owner's equity

Owner's equity is: the financial interest of the owner of a business. the amount the owner owes the business. the revenues less the expenses. the amount taken out of a business by the owner for personal use.

the financial interest of the owner of a business.

The three-line heading of a financial statement shows who, what, and __________. where when why how

when

Funds taken from the business by the owner for personal use are called __________. liabilities expenses assets withdrawals

withdrawals