Reference no: EM133001594
Questions -
Q1. The net income of Edwards Corporation amounted to? $65,000 for this year. The ending balance of? owner's equity was? $20,000 and the beginning balance was? $80,000. The company received no new contributions during the year. What was the amount of the? owner's withdrawals during the? year?
-$125,000
-$35,000
-$25,000
-$5,000
Q2. Which of the following statements is true of a balance sheet?
-Total assets equal total liabilities plus total equity.
-The balance sheet reports total revenues and expenses.
-Total assets plus total equity equal total liabilities.
-The balance sheet reports the beginning owner's equity.
Q3. Which organization is responsible for establishing reporting rules for nonprofit entities?
-Securities and Exchange Commission
-Governmental Accounting Standards Board
-American Institute of Certified Public Accountants
-Financial Accounting Standards Board
Q4. Receiving money from a customer immediately after providing a service will cause total assets, total liabilities, and equity to:
-increase, remain unchanged, and decrease, respectively.
-remain unchanged, remain unchanged, and remain unchanged, respectively.
-none of these.
-increase, remain unchanged, and increase, respectively.
-increase, increase, and remain unchanged, respectively.
Q5. Which of the following is the correct order of preparation of financial? statements?
-Balance sheet; income statement; statement of? owner's equity; statement of cash flows
-Statement of? owner's equity; balance sheet; income statement; statement of cash flows
-Balance sheet; statement of? owner's equity; income statement; statement of cash flows
-Income statement; statement of? owner's equity; balance sheet; statement of cash flows
Q6. Which of the following appears on both the statement of owner's equity and the balance sheet?
-Beginning capital account
-Net income
-Ending capital account
-Total assets
Q7. Jackson Co. has inventory which costed $20,000 when purchased. The cost to replace the inventory has since dropped to $15,000. Jackson has continued to carry the inventory at $20,000. Which accounting principle is Jackson violating?
-Objectivity Principle
-Matching Principle
-Monetary Unit Assumption
-Full Disclosure Principle
-Conservatism Principle
Q8. Which of the following transactions will decrease profit?
-paid cash to a supplier for the purchase of office supplies to be used later
-purchased equipment for cash
-provided services to a customer
-paid utility expense for the month
Q9. Several ago a company purchased land for $75,000. The value of the land increased quickly because of development in the area. An appraiser has determined the current market value of the land is $200,000. The land has been assessed at $150,000 for real estate tax purposes. At which amount should the company record the land in its accounting? records?
-$150,000
-$200,000
-$75,000
-$0, land is not a depreciable asset
Q10. Of the following account types, which normally display a credit balance:
-Revenues, and equity.
-Assets and equity.
-None of these.
-Assets and expenses.
-Liabilities and expenses.
Q11. Safety Walk Company provides dog walking services. Selected transactions for Safety Walk Company are as? follows: ?a) Owner contributed $3,000 cash, ?b) Paid $700 cash for an office desk, ?c) Paid $100 for dog treats that were eaten; ?d) Paid $500 rent for the month; and ?e) Provided dog walking services for clients and received $1,500 cash. Calculate the net income.
-$3,900
-$200
-$3,200
-$900
Q12. Which of the following is an advantage of forming a company as a partnership?
-Access to more capital than corporations.
-Partnerships pay corporate tax rates.
-Partnership disputes.
-Access to more capital than single ownership.