Flag this Question

Question 11pts

The standards that indicate how companies record and report economic events in the financial statements are

Internal Revenue Service regulations.

Generally Accepted Accounting Principles.

Securities Exchange Commission regulations.

Financial Statement regulations.

Flag this Question

Question 21pts

The cost principle requires that when assets are acquired, they be recorded at

appraisal value.

historical cost.

market price.

exchange price paid.

Flag this Question

Question 31pts

_ and _ are assets, _ is a liability and _ is an owner's equity accounts.

Cash, accounts payable, notes payable, owner's drawings.

Accounts receivable, prepaid rent, accounts payable, unearned revenue.

Buildings, supplies, accounts receivable, owner's drawings.

Prepaid insurance, accounts receivable, unearned revenue, owner's capital.

Flag this Question

Question 41pts

Revenues would result from

performance of a service.

initial investment of cash by owner.

collection from a customer on account.

payment of supplies purchased.

Flag this Question

Question 51pts

The accounting equation for Gudgeyes Enterprises is as follows:

AssetsLiabilitiesOwner's Equity

$120,000=$60,000+$60,000

If Gudgeyes collects $12,000 from a customer on account, the accounting equation after the transaction will be

$120,000 = $60,000 + $60,000

$132,000 = $60,000 + $72,000

$132,000 = $66,000 + $66,000

$132,000 = $72,000 + $60,000

Flag this Question

Question 61pts

Purchase of $500 supplies on account

increases an asset $500; decreases an asset $500.

increases an asset $500; increases a liability $500.

decreases a liability $500; increases owner's equity $500.

decreases an asset $500; decreases a liability $500.

Flag this Question

Question 71pts

Owner's capital at the end of the period is equal to

owner's capital at the beginning of the period plus net income minus liabilities.

owner's capital at the beginning of the period plus net income minus drawings.

net income.

assets plus liabilities.

Flag this Question

Question 81pts

A balance sheet

summarizes the changes in owner's equity for a specific period of time.

reports the changes in assets, liabilities, and owner's equity over a period of time.

reports the assets, liabilities, and owner's equity at a specific date.

reports the revenues and expenses for a specific period of time.

Flag this Question

Question 91pts

Carla's Computer Repair Shop started the year with total assets of $270,000 and total liabilities of $180,000. During the year, the business recorded $450,000 in computer repair revenues, $250,000 in expenses, and Carla withdrew $45,000.Carla's Capital balance at the end of the year was

$200,000.

$230,000.

$290,000.

$245,000.

Flag this Question

Question 101pts

A net loss will result during a time period when

liabilities exceed assets.

drawings exceed investments.

expenses exceed revenues.

revenues exceed expenses.