A01 Lesson 2 Exam SCORE 100 PERCENT

  

Question 1 (5 points)

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

Question 1 options:

  

accounts receivable

 

accounts   payable

 

cash

 

withdrawal

Question 2 (5 points)

Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes include __________.

Question 2 options:

  

cash   and capital increase, $12,000

 

cash   and revenue increase, $12,000

 

cash increases and accounts receivable decreases $12,000

 

accounts   receivable decreases and capital increases $12,000

Question 3 (5 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 __________.

Question 3 options:

  
$875
 

$1,750

 

$2,875

 

$3,750

Question 4 (5 points)

An accounting report that shows the changes in capital during the accounting period is __________.

Question 4 options:

  

a   balance sheet

 

an   

income statement

 

a

statement of owner’s equity

 

All   of these answers are correct.

Question 5 (5 points)

Which of the following transactions has no effect on owner’s equity?

Question 5 options:

  

paying   salaries expense

 

equipment purchase

 

billing   for services rendered

 

a   withdrawal

Question 6 (5 points)

The increase or decrease in the owner’s equity is reported on the __________.

Question 6 options:

  

income   statement

 
statement of owner’s equity
 

balance   sheet

 
All   of these answers are correct.

Question 7 (5 points)

The payment of accounts payable would __________.

Question 7 options:

  

increase   both assets and liabilities

 

increase   assets and decrease liabilities

 

decrease both assets and liabilities

 

decrease   assets and increase liabilities

Question 8 (5 points)

Ryan withdrew cash from the business to pay his personal cell phone bill. The expanded accounting equation changes include __________.

Question 8 options:

  

increase   in both cash and withdrawal

 

decrease   in both cash and withdrawal

 

decrease in cash and increase in withdrawal

 

increase   in cash and decrease in withdrawal

Question 9 (5 points)

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

Question 9 options:

  
balance   sheet
 
income statement
 

statement   of owner’s equity

 

statement   of cash flows

Question 10 (5 points)

A company has $4,500 in its Revenue account at the end of a period. The Expenses are as follows: Rent, $750; Utilities, $150; Salaries, $2,400; Insurance, $225. The net income (loss. for the period is __________.

Question 10 options:

  

$3,600

 

($2,100.

 

$975

 

($1,425.

Question 11 (5 points)

Carrie billed her legal clients $6,000 for legal work completed during the month. This transaction will __________.

Question 11 options:

  

cause   a $6,000 increase in revenues and liabilities

 

cause   a $6,000 increase in revenues and a decrease in liabilities

 

cause a $6,000 increase in assets and revenues

 

not   be recorded until the cash is collected

Question 12 (5 points)

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

Question 12 options:

  

Statement   of Cash Flows

 

Income   Statement

 

Statement of Company Position

 

Balance   Sheet

Question 13 (5 points)

The net income or net loss is calculated on the __________.

Question 13 options:

  
balance   sheet
 
statement   of owner’s equity
 
income statement
 

None   of the above

answers are correct.

Question 14 (5 points)

The statement of owner’s equity contains the __________.

Question 14 options:

  

owner’s capital for the beginning of the period

 

liabilities   of the company

 

total   amount owed by credit customers

 

balance   in the cash account

Question 15 (5 points)

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

Question 15 options:

  

an income statement

 
a   balance sheet
 

a   statement of owner’s equity

 

the   statement of cash flows

Question 16 (5 points)

Which of the following statements is prepared first?

Question 16 options:

  

Statement   of Owner’s Equity

 
Balance   Sheet
 

Income Statement

 
None   of the above

Question 17 (5 points)

An expense should be recorded when __________.

Question 17 options:

  

the   bill is paid

 

the expense is incurred

 

a   bill is received in the mail

 

None   of the above answers are correct.

Question 18 (5 points)

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

Question 18 options:

  

owner’s   withdrawals decrease net income

 

net   income causes liabilities to decrease

 

the business will incur a loss

 

owner’s   withdrawals increase owner’s equity

Question 19 (5 points)

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

Question 19 options:

  

an increase in owner’s equity

 

a   decrease in owner’s equity

 

an   increase in assets

 

no   effect on owner’s equity

Question 20 (5 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 __________.

Question 20 options:

  

$5,850

 

$7,500

 

$850

 

$9,150