ACC 101 Full Version 323 | Complete Solutions (Verified)

ACC 101 Full Version 323 | Complete Solutions (Verified) QN=1 If assets are $199,000 and liabilities are $132,000, then equity equals a. $32,000. b. $67,000. c. $99,000. d. $131,000. e. $198,000. QN=2 A cash outflow fr ...

ACC 101 Full Version 323 | Complete Solutions (Verified) QN=1 If assets are $199,000 and liabilities are $132,000, then equity equals a. $32,000. b. $67,000. c. $99,000. d. $131,000. e. $198,000. QN=2 A cash outflow from the company into its owner is called a(n): a. Liability. b. Withdrawal. c. Expense. d. Profit. e. Investment. QN=3 Liability created by purchasing goods and services on credit (tín dụng) are: a. Accounts payable. b. Accounts receivable. c. Liabilities. d. Expenses. e. Equity. QN=4 Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation? a. Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase. b. Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect. c. Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect. d. Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase. e. Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease. QN=5 How does Lead Company record by the billing of a client for $15,000 of service completed? a. +$15,000 accounts receivable, -$15,000 accounts payable. b. +$15,000 accounts receivable, +$15,000 accounts payable. c. +$15,000 accounts receivable, +$15,000 cash. d. +$15,000 accounts receivable, +$15,000 revenue. e. +$15,000 accounts receivable, -$15,000 revenue. QN=6 Moffat Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. What is the entry need to record when Moffat Company bill of a client for $25,000 of contract completed? a. +$25,000 accounts receivable, -$25,000 accounts payable. b. +$25,000 accounts receivable, +$25,000 accounts payable. c. +$25,000 accounts receivable, +$25,000 cash. d. +$25,000 accounts receivable, +$25,000 revenue. e. +$25,000 accounts receivable, -$25,000 revenue. QN=7 The balance in the prepaid insurance account before adjustment at the end of the year is $4,800, which represents the insurance premiums for four months. The premiums were paid on November 1. The adjusting entry required on December 31 is: a. Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400. b. Debit Prepaid Insurance, $2,400; credit Insurance Expense, $2,400. c. Debit Insurance Expense, $1,200; credit Prepaid Insurance, $1,200. d. Debit Prepaid Insurance, $1,200; credit Insurance Expense, $1,200 e. Debit Cash, $4,800; Credit Prepaid Insurance, $4,800. QN=8 A company might buy a service or product on credit. "On credit" implies that the cash payment will occur: a. On buying day b. on a later date c. on previous day d. No due date e. No obligation to pay QN=9 Provide descriptions for this transaction: Increase cash $1,000 and Increase equity $,1000 a. Investment of cash in business by owner or performed services for cash b. Investment of cash in business by owner c. Performed services for cash d. Collected cash from customers e. None of these QN=10 Provide descriptions for this transaction: Increase cash $4,000 and Increase CONTRIBUTED CAPITAL $4000 a. Investment of cash in business by owner or performed services for cash b. Investment of cash in business by owner c. Performed services for cash d. Collected cash from customers e. None of these QN=11 Provide descriptions for this transaction: Debit office supplies $8,000 and credit liability $,8000 a. Buying office supplies by cash $8,000 b. Buying office supplies on credit $8,000 c. Arrange office supplies contract on credit $8,000 d. Arrange office supplies contract by cash $8,000 e. None of these QN=12 Provide descriptions for this transaction: Decrease cash $3500 and Decrease equity $3500 a. Withdraw cash from the business by owner or paid cash for an expense b. Withdraw cash from the business by owner c. paid cash for an expense d. Collected cash from customers e. None of these QN=13 Items used in business operations, such as office pens and paper are several samples of: a. Office expense b. Office supplies c. Office equipment d. Prepayment e. None of these QN=14 The difference between a company's assets and its liabilities, or net assets is: a. Net income. b. Expense. c. Equity. d. Revenue. e. Net loss. QN=15 Resources owned or controlled by a company that are expected to yield future benefits are: a. Assets. b. Revenues. c. Liabilities. d. Owner's Equity. e. Expenses. QN=16 Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation? a. Assets increase by $75,000 and expenses increase by $75,000. b. Assets increase by $75,000 and expenses decrease by $75,000. c. Liabilities increase by $75,000 and expenses decrease by $75,000. d. Assets decrease by $75,000 and expenses decrease by $75,000. e. Assets increase by $75,000 and liabilities increase by $75,000. QN=17 Internal users of accounting information include: a. Shareholders. b. Managers. c. Lenders. d. Suppliers. e. Customers. QN=18 A chart of accounts generally starts with which of the following types of accounts? a. Asset accounts b. Liability accounts c. Expense accounts d. Equity accounts e. Revenue accounts QN=19 Which of the following is a liability? a. Account receivable b. Account payable c. Owner's capital d. Owner's withdrawal e. None of these QN=20 If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity? a. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000. b. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000. c. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change. d. There would be no effect on the accounts because the accounts are affected by the same amount. e. None of these. QN=21 Assets created by selling goods and services on credit are: a. Accounts payable. b. Accounts receivable. c. Liabilities. d. Expenses e. Equity. QN=22 A payment to an owner for personal use is called a(n): a. Liability. b. Withdrawal. c. Expense. d. Contribution. e. Investment. QN=23 The properties used in operation activities of a business is called: a. Revenue b. Withdrawal c. Assets d. Expense e. Liabilities QN=24 Which of the following is a liability? a. Note payable b. Note receivable c. Cash d. Inventory e. Expense QN=25 Which of the following is not considered as subcategory of owner's Equity? a. Revenue b. Withdrawal c. Assets d. Expense e. Contributed capital QN=26 Which of the following is not a liability? a. Account payable b. Note payable c. Short term loan d. Long term loan e. Short term investment QN=27 Which of the following is not a category or element of the balance sheet? a. Expense b. Liabilities c. Assets d. Account payable e. Loan QN=28 The account used to record the transfers of assets from a business to its owner is: a. A revenue account. b. The owner's withdrawals account. c. The owner's capital account. d. An expense account. e. A liability account. QN=29 Reflects assumption that the business will continue operating instead of being closed or sold. It is about: a. Going-Concern Assumption b. Business Entity Assumption c. Time Period Assumption d. Revenue Recognition Principle e. Cost Principle QN=30 A company must record its expenses incurred to generate the revenue reported at the same period. It is about: a. Going-Concern Assumption b. Business Entity Assumption c. Time Period Assumption d. Matching Principle e. Cost Principle QN=31 Which is the assumption stating that A business is accounted for separately from other business entities, including its owner? a. Going-Concern Assumption b. Business Entity Assumption c. Time Period Assumption d. Matching Principle e. Cost Principle QN=32 Which are expected to be sold, collected or used within one year or the company's operating cycle? a. Non - Current assets b. Non - Current liabilities c. Current liabilities d. Current assets e. None of these QN=33 Flash has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000 and investments by owners of $6,000. Its ending equity is: a. $223,000. b. $240,000. c. $268,000. d. $274,000. e. $208,000. QN=34 Which of the following statements is true about assets? a. They are economic resources owned or controlled by the business. b. They are expected to provide future benefits to the business. c. They appear on the balance sheet. d. Claims on them can be shared between creditors and owners. e. All of these. QN=35 Net Income: a. Decreases equity. b. Represents the amount of assets owners put into a business. c. Equals assets minus liabilities. d. Is the excess of revenues over expenses. e. Represents owners' claims against assets. QN=36 Decreases in equity that represent costs of assets or services used to earn revenues are called: a. Liabilities. b. Equity. c. Withdrawals. d. Expenses. e. Owner's Investment. QN=37 Accounting is an information and measurement system that: a. Identifies business activities. b. Records business activities. c. Communicates business activities. d. Helps people make better decisions. e. All of these. QN=38 Which of the following accounting principles would require that all goods and services purchased should be recorded at cost? a. Going-concern principle. b. Continuing-concern principle. c. Cost principle. d. Business entity principle. e. Consideration principle. QN=39 External users of accounting information include: a. Shareholders. b. Customers. c. Creditors. d. Government regulators. e. All of these. QN=40 The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the: a. Income statement equation. b. Accounting equation. c. Business equation. d. Net income. e. Trial balance. QN=41 Another name for equity is: a. Net income. b. Expenses. c. Net asset. d. Revenue. e. Net loss. QN=42 On June 30 of the current year, the assets and liabilities of Phoenix Phildell are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of July 1 of the current year? a. $8,300 b. $13,050 c. $20,500 d. $31,100 e. $40,400 QN=43 Accounts receivable refers: a. A promise from customer for service or product the company provided on credit b. A prepayment of future expense c. A prepayment of customer for service to be provided in future d. Money which is owed to a provider by the company e. Investment by owner QN=44 Money which a company owes to vendors for products and services purchased on credit. This item appears on the company's balance sheet as a current liability. a. Prepayment b. Account receivable c. Asset d. Account payable e. Cost of goods sold QN= 45 If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have: a. Increased $22,000. b. Decreased $22,000. c. Increased $89,000. d. Decreased $156,000. e. Increased $156,000. QN=46 If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets? a. Assets would have increased $55,000. b. Assets would have decreased $55,000. c. Assets would have increased $19,000. d. Assets would have decreased $19,000. e. None of these. QN= 47 The following transactions occurred during July: 1. Received $900 cash for services provided to a customer during July. 2. Received $2,200 cash investment from Barbara Hanson, the owner of the business. 3. Received $750 from a customer in partial payment of his account receivable which arose from sales in June. 4. Provided services to a customer on credit, $375. 5. Borrowed $6,000 from the bank by signing a promissory note. 6. Received $1,250 cash from a customer for services to be rendered next year. What was the amount of revenue for July? a. $ 900. b. $ 1,275. c. $ 2,525. d. $ 3,275. e. $11,100. QN=48 Creditors' claims on the assets of a company are called: a. Net losses. b. Expenses. c. Revenues. d. Equity. e. Liabilities. QN=49 Distributions by a business to its owners are called: a. Withdrawals. b. Expenses. c. Assets. d. Retained earnings. e. Net Income. QN=50 How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed? a. +$10,000 accounts receivable, -$10,000 accounts payable. b. +$10,000 accounts receivable, +$10,000 accounts payable. c. +$10,000 accounts receivable, +$10,000 cash. d. +$10,000 accounts receivable, +$10,000 revenue. e. +$10,000 accounts receivable, -$10,000 revenue. QN=51 Viscount Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are: a. Total assets decrease and equity increases. b. Both total assets and total liabilities decrease. c. Total assets, total liabilities, and equity are unchanged. d. Both total assets and equity are unchanged and liabilities increase. e. Total assets increase and equity decreases. QN=52 If assets are $365,000 and equity is $120,000, then liabilities are: a. $120,000. b. $245,000. c. $365,000. d. $485,000. e. $610,000. QN=53 The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called: a. A Balance sheet. b. A Statement of owner's equity. c. A Statement of cash flows. d. An Income statement. e. A Statement of financial position. QN=54 A balance sheet lists: a. The types and amounts of the revenues and expenses of a business. b. Only the information about what happened to equity during a time period. c. The types and amounts of assets, liabilities, and equity of a business as of a specific date. d. The inflows and outflows of cash during the period. e. The assets and liabilities of a company but not the owner's equity. QN=55 A condition in which a company's expenses exceed its revenues. What does that mean: a. A loss b. A gain c. A profit d. A net income e. A net sale QN=56 Which is true about account receivable: a. Money which is owed to a company by a customer for products and services provided on credit. b. Money which is owed to a company by a customer for products and services provided. c. Money which is borrowed by a company for products and services bought on credit. d. Money which is borrowed by a company for products and services bought. e. None of these QN=57 Which statement is true: a. Prepaid expense is considered an asset on the balance sheet b. Prepaid expense is considered a liability on the balance sheet c. Prepaid expense is considered an expense on the income statement d. Prepaid expense is considered a loss on the income statement e. None of these QN=58 Which statement is true: a. Unearned revenue is considered an asset on the balance sheet b. Unearned revenue is considered a liability on the balance sheet c. Unearned revenue is considered an expense on the income statement d. Unearned revenue is considered a loss on the income statement e. None of these QN=59 The assets of a company total $700,000; the liabilities, $200,000. What are the claims of the owners? a. $900,000. b. $700,000. c. $500,000. d. $200,000. e. It is impossible to determine unless the amount of this owners' investment is known. QN=60 An account used to record the owner's investments in the business is called a(n): a. Withdrawals account. b. Contributed Capital account. c. Revenue account. d. Expense account. e. Liability account. QN=61 A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount of owner's equity? a. $17,000. b. $29,000. c. $71,000. d. $88,000. e. $105,000. QN=62 Gross increases in equity from a company's earnings activities are: a. Assets. b. Revenues. c. Liabilities. d. Owner's Equity. e. Expenses. QN=63 How many accounts does every business transaction affect at least? a. 1 b. 2 c. 3 d. 4 e. Infinite QN=64 The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the: a. Objectivity principle. b. Business entity assumption. c. Going-concern assumption. d. Revenue recognition principle. e. Cost principle. QN=65 The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the: a. Going-concern principle. b. Business entity principle. c. Objectivity principle. d. Cost Principle. e. Monetary unit principle. QN=66 Prepaid expenses are: a. Payments made for products and services that do not ever expire. b. Classified as liabilities on the balance sheet. c. Decreases in equity. d. Assets that represent prepayments of future expenses. e. Promises of payments by customers. QN= 67 External users of accounting information exclude: a. Shareholders. b. Manager. c. Creditors. d. Government regulators. e. All of these. QN=68 The rule that financial statements will be prepared with the assumption that the business will continue operating instead of being closed or sold, is the: a. On - Going-concern principle. b. Accrual basic principle. c. Matching principle. d. Cost Principle. e. Consistency principle. QN=69 The accounting principle that requires expense incurred to generate revenue to be recorded at the same period with that revenue is a. Matching principle b. Cost principle. c. On - Going-concern principle. d. Accrual principle. e. Consistency principle. QN=70 The following transactions, among others, occurred during August. Which transaction represented an expense during August a. Purchased office supplies for $3000 cash b. Paid $3300 in settlement of a loan obtained three months earlier c. Paid $500 to a garage mechanic for automobile repair work performed in June d. Rent a space for office on account. The rental amount will be paid in the next 2 months. e. None of these QN=71 Which is true about Expenses: a. The same as net income. b. The excess of expenses over assets. c. Resources owned or controlled by a company. d. Company's earning activities that contribute to increase owner's equity . e. The costs of assets or services used to generate revenue. QN=72 Which is true about Revenues: a. The same as net income. b. The excess of expenses over assets. c. Resources owned or controlled by a company. d. Company's earning activities that contribute to increase owner's equity . e. The costs of assets or services used. QN=73 Which type of information would be of most interest to creditors? a. Dividend declared b. Ability of the company to pay debts c. Last year's profit d. Current share price e. None of these QN=74 What accounting principle requires credit sales revenue also included in the income statement? a. Cash basis b. Accrual basis c. Accounting period assumption d. Monetary unit assumption e. Historical cost principle QN=75 Repayment of the loan for the bank $ 2,000 cash will be recorded in general journal as: a. Debit cash, credit Expense b. Credit cash , debit expense c. Debit cash, credit loan d. Credit cash, debit loan e. None of these QN=76 The right side of a T-account is a(n): a. Debit. b. Increase. c. Credit. d. Decrease. e. Account balance. QN=77 A liability account that reports amounts received in advance of providing goods or services. It is about: a. Prepaid expense b. Liability c. Revenue d. Unearned revenue e. None of these QN=78 Which statement is true about Mary's capital: