To view this notification widget you need to have JavaScript enabled. This notification widget was easily created with NotifySnack.
  Loading... Please wait...

A02 Principles of Accounting I Exam 1 Answers (Ashworth College)

Price:
$14.99


Product Description

A02 Principles of Accounting I Exam 1 Answers (Ashworth College)

EXAM 1

Part 1 of 1 -

100.0/ 100.0 Points

 

Question 1 of 20

5.0/ 5.0 Points

Which of the following would result if the business purchased supplies on credit?

 

 

 

A. Supplies would increase and Cash would decrease.

 

 

B. Supplies would increase and Capital would increase.

 

 

C. Supplies would increase and Accounts Payable would increase.

 

 

D. The purchase of supplies is not a business transaction.

 

 

Question 2 of 20

5.0/ 5.0 Points

The purchase of supplies for cash would affect which account category?  

 

 

 

A. assets

 

 

B. liabilities

 

 

C. capital

 

 

D. expense

 

 

Question 3 of 20

5.0/ 5.0 Points

Mary invested cash in her new business. What effect will this have?

 

 

 

A. increase an asset and increase a liability

 

 

B. decrease an asset and increase a liability

 

 

C. increase an asset and increase owner's equity

 

 

D. increase an asset and decrease owner's equity

 

 

Question 4 of 20

5.0/ 5.0 Points

A legal firm would be considered a __________.

 

 

 

A. merchandise company

 

 

B. manufacturer

 

 

C. service company

 

 

D. None of the above answers are correct.

 

 

Question 5 of 20

5.0/ 5.0 Points

If total liabilities increased by $6,000 and the assets increased by $8,000 during the accounting period, what is the change in the owner's equity amount?

 

 

 

A. increase of $2,000

 

 

B. decrease of $2,000

 

 

C. increase of $10,000

 

 

D. decrease of $10,000

 

 

Question 6 of 20

5.0/ 5.0 Points

A corporation __________.

 

 

 

A. can continue indefinitely

 

 

B. is owned by stockholders

 

 

C. has limited risk to stockholders

 

 

D. All of these answers are correct.

 

 

Question 7 of 20

5.0/ 5.0 Points

Bonnie's Baskets purchases $4,000 worth of office equipment on account. This causes

 

 

 

A. Cash and Capital to decrease.

 

 

B. Office Equipment and Accounts Payable to increase.

 

 

C. Office Equipment to decrease and Accounts Payable to increase.

 

 

D. Accounts Payable to increase and Capital to decrease.

 

 

Question 8 of 20

5.0/ 5.0 Points

Which of the following transactions would cause one asset to increase and another asset to decrease?

 

 

 

A. The owner invested cash in the business.

 

 

B. The business paid a creditor.

 

 

C. The business incurred an expense on credit.

 

 

D. The business bought supplies for cash.

 

 

Question 9 of 20

5.0/ 5.0 Points

How does the purchase of office equipment on account affect the accounting equation?  

 

 

 

A. assets increase; liabilities decrease

 

 

B. assets increase; owner's equity increases

 

 

C. assets increase; liabilities increase

 

 

D. liabilities increase; owner's equity decreases

 

 

Question 10 of 20

5.0/ 5.0 Points

Katie's Vegetarian Restaurant, with total assets of $90,000, borrows $15,000 from the bank. Which of the following is a true statement upon borrowing the money?

 

 

 

A. Total assets are now $105,000.

 

 

B. Total assets are now $80,000.

 

 

C. Total assets are now $15,000.

 

 

D. Total assets are now $75,000.

 

 

Question 11 of 20

5.0/ 5.0 Points

Which of the following will be recorded in the owner's equity column as an increase?

 

 

 

A. an exchange of assets

 

 

B. the purchase of an asset on credit

 

 

C. an investment by the owner

 

 

D. a withdrawal by the owner

 

 

Question 12 of 20

5.0/ 5.0 Points

The type of business organization that can continue indefinitely is known as a __________.

 

 

 

A. sole proprietorship

 

 

B. partnership

 

 

C. corporation

 

 

D. None of the above answers are correct.

 

 

Question 13 of 20

5.0/ 5.0 Points

A purchase of a vehicle for cash would have what effect on the accounting equation?

 

 

 

A. Total asset amount remains the same.

 

 

B. Total liabilities are overstated.

 

 

C. Total owner's equity is overstated.

 

 

D. Both A and B are correct.

 

 

Question 14 of 20

5.0/ 5.0 Points

Logan's Motor Sports buys $30,000 of equipment on credit. Which of the following is a true statement?

 

 

 

A. Total assets increase.

 

 

B. Total assets are unchanged.

 

 

C. Total liabilities decrease.

 

 

D. Total liabilities are unchanged.

 

 

Question 15 of 20

5.0/ 5.0 Points

The purpose of the accounting process is to provide financial information about __________.

 

 

 

A. sole proprietorships

 

 

B. small businesses

 

 

C. large corporations

 

 

D. All of these answers are correct.

 

 

Question 16 of 20

5.0/ 5.0 Points

The claims of creditors against the assets are __________.

 

 

 

A. expenses

 

 

B. revenues

 

 

C. liabilities

 

 

D. owner's equity

 

 

Question 17 of 20

5.0/ 5.0 Points

Which of the following is a characteristic of a sole proprietorship?

 

 

 

A. business owned by more than one person

 

 

B. easy to form

 

 

C. each stockholder acts as an owner of the company

 

 

D. can continue indefinitely

 

 

Question 18 of 20

5.0/ 5.0 Points

Which of the following is not a type of business organization?

 

 

 

A. corporation

 

 

B. partnership

 

 

C. sole proprietorship

 

 

D. operation

 

 

Question 19 of 20

5.0/ 5.0 Points

If total liabilities are $1,000 and total assets are $8,000, owner's equity must be __________.

 

 

 

A. $7,000

 

 

B. $3,000

 

 

C. $10,000

 

 

D. $13,000

 

 

Question 20 of 20

5.0/ 5.0 Points

If total assets are $30,000 and total liabilities are $18,000, Capital must equal __________.

 

 

 

A. $12,000

 

 

B. $28,000

 

 

C. $8,000

 

 

D. $20,000

 

 

 

Products by Category

Add to Wish List

Click the button below to add the A02 Principles of Accounting I Exam 1 Answers (Ashworth College) to your wish list.

You Recently Viewed...