Fundamentals_of_Accounting_101_week_2_assessment

Question 1 4 / 4 pts ________ accountants work on the staff offederal, state, orlocal governmental units.

Public

Governmental

Private

Question 2 4 / 4 pts After the transactions havebeen posted, thenext step in the accounting cycle is to

prepare the financial statements.

prepare the postclosing trial balance.

prepare the worksheet.

journalize and post the adjusting entries.

Question 3 4 / 4 pts The Statement of Owner's Equity is calculated as follows:

beginning capital + net income - withdrawals + additional investments = ending capital

beginning capital + net loss + withdrawals + additional investments = ending capital

beginning capital + net loss - withdrawals + additional investments = ending capital

beginning capital + net income + withdrawals + additional investments = ending capital

Question 4 4 / 4 pts The balance sheet shows

the results of business operations.

all revenues and expenses.

the amount of net income or loss.

the financial position of a business at a given time.

Question 5 4 / 4 pts The fundamental accounting equation can be rewritten as:

Assets + Liabilities = Owner's Equity

Liabilities - Owner's Equity = Assets

Assets + Owner's Equity = Liabilities

Assets - Liabilities = Owner's Equity

Question 6 4 / 4 pts Which of the following is NOT a type of information communicated by the financial statements?

Whether or not the business is profitable

What types of assets business owns

How long the business has been in operation

How much the business owes others

Question 7 4 / 4 pts Our company purchases equipment on account duein 30 days.When the payment is finally made,

assets increase

equity increases

equity decreases

liabilities decrease

Question 8

4 / 4 pts

Al Dunn Bakery bought a new oven for $1,380. Al paid $300 as a cash down payment and will pay the balance in 30 days. Total assets increased by

$1,080

$1,380

$300

not increased

Question 9 4 / 4 pts When expenses are paid, thetransaction is recorded as a decrease to an expense account. Thisequates to a(n)

increase in liabilities

decrease in equity

increase in equity

decrease in liabilities

Question 10 4 / 4 pts The owner's initial investment ofcash into the company isrecorded as a ________ to the owner's capital account.

debit

credit

either debit or credit

Question 11 4 / 4 pts Amounts owedto a business by its clients are called

Accounts Payable

Revenues

Accounts Receivable

None of the above

Question 12

4 / 4 pts

Revenues are recognized when:

cash is received

goods are sold

services are rendered

when goods are sold or services rendered

Question 13 4 / 4 pts Amounts thata business mustpay in the future are known as

Accounts Receivable.

Accounts Payable.

Capital.

Expenses.

Question 14

4 / 4 pts

The total of the figures on the left side of a Cash account is $25,800. The total of the figures on the right side is $14,100. The balance of this account

is $11,700 and would be recorded on the right side of the account.

is $39,900 and would be recorded on the left side of the account.

is $39,900 and would be recorded on the right side of the account.

is $11,700 and would be recorded on the left side of the account.

Incorrect Question 15 0 / 4 pts Prepaid Renthas a debitentry of $5,000 and a credit entry of $2,000. What is the balance of this account?

credit balance of $3,000

debit balance of $3,000

debit balance of $5,000

credit balance of $5,000

Question 16

4 / 4 pts

Accounts Receivable has a debit balance of $8,500. Payments of $2,500 are received from credit clients. The new balance in Accounts Receivable is: (no dollar signs)

$11,000

$2,500

$6,000

$8,500

Question 17 4 / 4 pts When thereare several entries to one or both sidesof a t-account, the total of those entries is entered in pencil. Thisis called

balancing.

verifying.

totaling.

footing.

Question 18 4 / 4 pts Accounts withnormal credit balances are (select allthat apply):

Cash

Supplies

Service Fees

Utilities Expense

Capital

Accounts Payable

Partial Question 19 3.2 / 4 pts Accounts withnormal debit balances are (select allthat apply):

Cash

Supplies

Prepaid Insurance

Accounts Payable

Capital

Drawing

Utilities Expense

Question 20 4 / 4 pts Debits areused to record

increases in assets.

increases in revenue.

increases in owner's equity.

increases in liabilities.

Question 21 4 / 4 pts Credits areused to record

decreases in assets and owner's equity and increases in liabilities.

decreases in assets, liabilities, and owner's equity.

decreases in liabilities and increases in assets and owner's equity.

increases in liabilities and owner's equity.

Question 22 4 / 4 pts The T-accounts have the following balances:

What must the balance of the Capital account be for the fundamental accounting equation to balance?

debit balance of $2,000

credit balance of $2,000

credit balance of $6,000

debit balance of $4,000

Question 23 4 / 4 pts The T-accounts have the following balances:

What must the balance of the Capital account be for the fundamental accounting equation to balance?

debit balance of $17,000

credit balance of $18,000

credit balance of $17,000

credit balance of $16,000

Question 24 4 / 4 pts The T-accounts have the following balances:

What must the balance of the Drawing account be for the fundamental accounting equation to balance?

credit balance of $2,500

credit balance of $7,000

debit balance of $2,500

debit balance of $500

Question 25 4 / 4 pts Which of the following is correct?

A

B

Credit 4,500