Reference no: EM132465216

Question

Question 1) Which of the following has an impact only on the balance sheet?

1. depositing interest received on savings
2. reducing the principal portion of a car loan
3. paying insurance expense
4. paying the interest portion of a car loan

Question 2) A company prepays a 12 month insurance policy for $4800 on december 31,2009. The policy is in effect on january 1,2020.How much will equity change by january 31,2010 due to the insurance policy?

1. none of the choices
2. 4800
3. 400
4. 4400

Question 3) if a business records a telephone expense in March but does not pay the bill until june, which of the following is true?

1. In march, debt increase, expenses increase and equity does not change
2. In march, debt increase, expenses increase and equity decrease
3. In June, debt decrease in March equity and cash decrease
4. In June, debt decrease, expenses increase and equity decrease

Question 4) You prepay $600 in January towards insurance for the year. By how much will your net worth have been affected if you cancel your policy after 6 months?

a. Increase by $300

b. Decrease by $600

c. Decrease by $300

d. It will not change at all

Question 5) In April you have your car painted and you are billed $700 for the work. The garage agrees that you can pay half the bill in May and the rest in June. Which of the following is true?

a. None of the choices

b. Your net worth decreases by $700 in April

c. Your net worth decreases by $350 in May and another $350 in June

d. Your net worth decreases by $700 in May when the entire bill is paid

Question 6) when an accountant serves the needs of internal users,generally works for one organization, and prepares specialized reports to assist in decision making, that accountant is engaged in:

a.managerial accounting

b.none of the choices

c.consulting

d.public accounting

Question 7) members shall adhere to aknowledged principles and standards of professional practice. the preceding statement is:

A. a form of organization

b. a statement of ASPE

c. a statement typical of the codes of ethics for accountants

d.an aspect of triple bottom line reporting.

Question 8) During the month, you received a salary of $3000, charged a $40 meal to your credit card,paid back $500 of student loans, purchased a $1030 computer, and prepaid $300 for a magazine subscription.During the month,your net worth:

a. increased by$3000

b.increased by$1930

c.none of the choices

d. increased by $2200

e. increased by $2460