Question 16(1 point)

A balance sheet lists:

Question 16 options:

1)

The types and amounts of the revenues and expenses of the business

2)

Only the information about what happened to equity during a specific time period

3)

The types and amounts of assets, liabilities, and equity of a business at a specific date

4)

The inflows and outflows of cash during a specific period

5)

The assets and liabilities of a business but not the equity

Question 17(1 point)

If a business is not being sold or closed, the amounts reported in the accounts for assets used in operations are based on costs. This practice is justified by the:

Question 17 options:

1)

Cost principle

2)

Business entity principle

3)

Going concern principle

4)

Measurement

5)

Revenue recognition principle

Question 18(1 point)

Revenue is recognized in most businesses:

Question 18 options:

1)

When the customer's order is received

2)

Only if the transaction creates an accounts receivable

3)

Only if paid in cash

4)

Upon completion of the sale or when services have been performed and the business obtains the right to collect the sales price

5)

When cash from a sale is received

Question 19(1 point)

If equity is $30,000 and liabilities are $73,000, then assets equal:

Question 19 options:

1)

$30,000

2)

$40,000

3)

$60,000

4)

$73,000

5)

$103,000

Question 20(1 point)

Today, Cedar Park Company paid $600 of its accounts payable in cash. What is the effect on the accounting equation?

Question 20 options:

1)

Assets, $600 increase; liabilities, no effect; equity, $600 increase

2)

Assets, $600 decrease; liabilities, $600 decrease; equity, no effect

3)

Assets, $600 decrease; liabilities, $400 increase; equity, $200 decrease

4)

Assets, no effect; liabilities, $600 decrease; equity, $400 increase

5)

No effect

Question 21(1 point)

An account used to record the owner's investments in the business plus any more or less permanent changes in the equity is called a(n):

Question 21 options:

1)

Withdrawals account

2)

Capital account

3)

Assets account

4)

Expense account

5)

Revenue account

Question 22(1 point)

Blue Company collected $2,000 cash for work completed. The effects on the accounting equation are:

Question 22 options:

1)

Total assets decrease and equity increases

2)

Both total assets and total liabilities decrease

3)

Total assets, total liabilities, and equity are unchanged

4)

Both total assets and equity are unchanged

5)

Total assets increase and equity increases

Question 23(1 point)

Source documents include all of the followingexcept:

Question 23 options:

1)

Sales invoices

2)

Financial statements

3)

Cheques

4)

Purchase orders

5)

Bank statements

Question 24(1 point)

If Girard Don, the owner of Girard's Software proprietorship, uses cash of the business to purchase a personal computer, the business should record this use of cash with an entry to:

Question 24 options:

1)

Debit Salary Expense and credit Cash

2)

Debit Girard Don, Salary and credit Cash

3)

Debit Cash and credit Girard Don, Withdrawals

4)

Debit Girard Don, Capital and credit Cash

5)

Debit Girard Don, Withdrawals and credit Cash

Question 25(1 point)

How would the accounting equation of Lenore Turner's consulting business be affected by the billing of a client for $2,000 for consulting work completed?

Question 25 options:

1)

Accounts receivable, $2,000 increase, liabilities, $2,000 decrease

2)

Accounts receivable, $2,000 increase, liabilities, $2,000 increase

3)

Accounts receivable, $2,000 increase, cash, $2,000 increase

4)

Accounts receivable, $2,000 increase, equity, $2,000 increase

5)

Accounts receivable, $2,000 increase, cash, $2,000 decrease

Question 26(1 point)

Unearned revenues are:

Question 26 options:

1)

Revenues that have been earned and received

2)

Revenues that have been earned but not yet collected

3)

Liabilities created by advance cash payments from customers for products or services

4)

Recorded as an asset in the accounting records

5)

Increases to owners' equity

Question 27(1 point)

Prepaid expenses are:

Question 27 options:

1)

Payments made for economic benefits that never expire

2)

Classified as liabilities on the balance sheet

3)

Generally all combined into one account called "Miscellaneous Expenses"

4)

Assets created by payments for economic benefits that are not used up until later

5)

Always debited to an expense account

Question 28(1 point)

Of the following accounts, the one that normally has a credit balance is:

Question 28 options:

1)

Cash

2)

Office equipment

3)

Sales salaries payable

4)

Ted Neal, withdrawals

5)

Sales salaries expense

Question 29(1 point)

The process of copying journal information to the ledger is called:

Question 29 options:

1)

Double-entering

2)

Posting

3)

An internal business transaction

4)

Journalizing

5)

An external business transaction

Question 30(1 point)

The most flexible type of journal that can be used to record any kind of transaction is called a:

Question 30 options:

1)

Ledger

2)

Trial balance

3)

Chart of accounts

4)

General journal

5)

Balance column account

Question 31(1 point)

While in the process of posting from the journal to the ledger, the accountant for X Company failed to post a $50 debit to the Office Supplies account. The effect of this error will be as follows:

Question 31 options:

1)

The Office Supplies account balance will be overstated

2)

The trial balance will not balance

3)

The error will overstate the debits listed in the journal

4)

The total debits in the trial balance will be larger than the total credits

5)

This error will not make any difference

Question 32(1 point)

The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the:

Question 32 options:

1)

Revenue recognition principle

2)

Cost principle

3)

Cash basis of accounting

4)

Matching principle

5)

Timeliness principle

Question 33(1 point)

Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of:

Question 33 options:

1)

Items that require contra accounts

2)

Items that require adjusting entries

3)

Classified balance sheet accounts

4)

Assets

5)

Income statement accounts

Question 34(1 point)

The total amount of depreciation recorded for an asset during the entire time the asset has been owned:

Question 34 options:

1)

Is not shown on the balance sheet

2)

Is referred to as accumulated depreciation

3)

Is shown on the income statement

4)

Is shown on the statement of changes in equity

5)

Is recorded in a liability account

Question 35(1 point)

Which of the following does not require an adjusting entry at year-end?

Question 35 options:

1)

Accrued interest on notes payable

2)

Supplies used during the period

3)

Cash invested by owner

4)

Accrued wages

5)

Expired portion of prepaid insurance