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A02 Principles of Accounting I Exam 2 Answers (Ashworth College)

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A02 Principles of Accounting I Exam 2 Answers (Ashworth College)

EXAM 2

Part 1 of 1 -

100.0/ 100.0 Points

 

Question 1 of 20

5.0/ 5.0 Points

Which of the following items are on both the balance sheet and the statement of owner's equity?

 

 

 

A. Net loss

 

 

B. Capital

 

 

C. Additional owner's investments

 

 

D. Owner's withdrawals

 

 

Question 2 of 20

5.0/ 5.0 Points

An expense should be recorded when __________.

 

 

 

A. the bill is paid

 

 

B. the expense is incurred

 

 

C. a bill is received in the mail

 

 

D. None of the above answers are correct.

 

 

Question 3 of 20

5.0/ 5.0 Points

A revenue should be recorded when __________.

 

 

 

A. it is earned

 

 

B. payment is received

 

 

C. the invoice is sent to the customer

 

 

D. None of the above answers are correct.

 

 

Question 4 of 20

5.0/ 5.0 Points

If a company's revenues are higher than its expenses, it will cause __________.

 

 

 

A. an increase in owner's equity

 

 

B. a decrease in owner's equity

 

 

C. an increase in assets

 

 

D. no effect on owner's equity

 

 

Question 5 of 20

5.0/ 5.0 Points

The statement of owner’s equity contains the __________.

 

 

 

A. owner’s capital for the beginning of the period

 

 

B. liabilities of the company

 

 

C. total amount owed by credit customers

 

 

D. balance in the cash account

 

 

Question 6 of 20

5.0/ 5.0 Points

Expenses __________.

 

 

 

A. are costs the company incurs in carrying on operations

 

 

B. are a subdivision of owner's equity

 

 

C. record personal expenses not related to the business

 

 

D. Both A and B are correct.

 

 

Question 7 of 20

5.0/ 5.0 Points

If beginning capital was $110,000, ending capital is $95,000, and the owner's withdrawals were $10,000, the amount of net income or net loss was __________.

 

 

 

A. net income of $5,000

 

 

B. net income of $15,000

 

 

C. net loss of $15,000

 

 

D. net loss of $5,000

 

 

Question 8 of 20

5.0/ 5.0 Points

Vic's Mart collects $700 of its accounts receivable. The expanded accounting equation impact is __________.

 

 

 

A. cash and capital increase $700

 

 

B. cash and revenue increase $700

 

 

C. cash increases and accounts receivable decreases $700

 

 

D. accounts receivable decreases and capital increases $700

 

 

Question 9 of 20

5.0/ 5.0 Points

A company has the following balances in its asset accounts: Cash, $750; Accounts Receivable, $125; Equipment, $2,000; Supplies, $875. The amount of the company’s total assets is __________.

 

 

 

A. $875

 

 

B. $1,750

 

 

C. $2,875

 

 

D. $3,750

 

 

Question 10 of 20

5.0/ 5.0 Points

Which accounts are affected when the company buys supplies on account?

 

 

 

A. assets and capital

 

 

B. liabilities and capital

 

 

C. assets and liabilities

 

 

D. None of the above answers are correct.

 

 

Question 11 of 20

5.0/ 5.0 Points

The financial statement that shows revenue and expenses for a period of time is the __________.

 

 

 

A. balance sheet

 

 

B. income statement

 

 

C. statement of owner's equity

 

 

D. statement of cash flows

 

 

Question 12 of 20

5.0/ 5.0 Points

Which of the following is not one of the four basic financial statements?

 

 

 

A. Statement of Cash Flows

 

 

B. Income Statement

 

 

C. Statement of Company Position

 

 

D. Balance Sheet

 

 

Question 13 of 20

5.0/ 5.0 Points

When services are rendered but payment is not made, which account would be increased?

 

 

 

A. accounts receivable

 

 

B. accounts payable

 

 

C. cash

 

 

D. withdrawal

 

 

Question 14 of 20

5.0/ 5.0 Points

The financial statement that shows business results in terms of revenue and expenses is __________.

 

 

 

A. an income statement

 

 

B. a balance sheet

 

 

C. a statement of owner's equity

 

 

D. the statement of cash flows

 

 

Question 15 of 20

5.0/ 5.0 Points

Which financial statement is considered a link between the income statement and balance sheet?

 

 

 

A. Statement of Cash Flows

 

 

B. Statement of Company Assets

 

 

C. Statement of Company Liquidity

 

 

D. Statement of Owner’s Equity

 

 

Question 16 of 20

5.0/ 5.0 Points

Which statement is prepared for only one date?

 

 

 

A. Income Statement

 

 

B. Statement of Cash Flows

 

 

C. Balance Sheet

 

 

D. Statement of Owner’s Equity

 

 

Question 17 of 20

5.0/ 5.0 Points

Which financial statement is prepared first?

 

 

 

A. Statement of Owner's Equity

 

 

B. Balance Sheet

 

 

C. Income Statement

 

 

D. None of the above

 

 

Question 18 of 20

5.0/ 5.0 Points

BPK Industries has a net income for the period of $2,500. The balance in the Owner’s Capital account for the beginning of the period is $5,000 and the owner has withdrawn $1,650 for personal expenses. The balance in the Owner’s Capital account at the end of the period will be __________.

 

 

 

A. $5,850

 

 

B. $7,500

 

 

C. $850

 

 

D. $9,150

 

 

Question 19 of 20

5.0/ 5.0 Points

The payment of accounts payable would __________.

 

 

 

A. increase both assets and liabilities

 

 

B. increase assets and decrease liabilities

 

 

C. decrease both assets and liabilities

 

 

D. decrease assets and increase liabilities

 

 

Question 20 of 20

5.0/ 5.0 Points

If 'Ol Fashioned Toys' revenues are less than its expenses during the accounting period, then __________.

 

 

 

A. owner's withdrawals decrease net income

 

 

B. net income causes liabilities to decrease

 

 

C. the business will incur a loss

 

 

D. owner's withdrawals increase owner's equity

 

 

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