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  • ACCT 301 - ACCT 301 Quiz 1 (25 - 25)

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    ACCT 301/ACCT 301 Quiz 1 (25/25) ACCT 301/ACCT 301 Quiz 1 (25/25) Question 1. Which of the following statements is most applicable to the business entity concept? a. the owner is part of the business entity b. an entity is organized according to state or federal statutes c. an entity is organized according to the rules set by the FASB d. the entity is an individual economic unit for which data are recorded, analyzed, and reported 2 . Elli Catering Services previously bought equipment with an estimated market value of $45,000 and is now offering it for sale at $65,000. The Trang Restaurant Group acquired it for $10,000 in cash and a note payable of $40,000 due in 30 days. The amount used in Trang’s accounting records to record this acquisition is a. $50,000 b. $65,000 c. $10,000 d. $45,000 3. If Chesapeake Company’s total liabilities decreased by $25,000 during a period of time and owner’s equity increased by $30,000 during the same period, the amount and direction (increase or decrease) of the period’s change in total assets is a. $65,000 increase b. $5,000 decrease c. $5,000 increase d. $65,000 decrease 4. Brielle Financial Services paid $9,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to a. increase one asset, decrease another asset b. increase an asset, increase a liability c. decrease an asset, decrease a liability d. increase an asset, increase owner’s equity 5. When revenue is earned it a. increases assets, increases owner’s equity. b. increases assets, decreases owner’s equity c. increases one asset, decreases another asset d. decreases assets, increases liabilities 6 An account is said to have a debit balance if a. the amount of the debits exceeds the amount of the credits b. there are more entries on the debit side than on the credit side c. its normal balance is debit without regard to the amounts or number of entries on the debit side d. the last entry of the accounting period was posted on the debit side 7 . According to the rules of debits and credits : a. decrease Prepaid Rent with a credit and the normal balance is a credit b. increase Unearned Revenue with a credit and the normal balance is a debit c. increase Supplies Expense with a debit and the normal balance is a debit d. decrease Cash with a debit and the normal balance is a credit 8 . When the accountant at Nottingham Auto makes a payment on an Account payable she will a. debit Cash; credit Accounts Payable b. debit Accounts Receivable; credit Cash c. debit Cash; credit Supplies Expense d. debit Accounts Payable; credit Cash 9. Which of the following entries records the investment of cash by Jakob, owner of a proprietorship? a. debit Jakob, Capital; credit Accounts Receivable b. debit Cash; credit Jakob, Capital c. debit Jakob, Drawing; credit Cash d. debit Cash; credit Jakob, Drawing 10. Which of the following entries records the receipt of a utility bill from Baltimore Water Works ? a. debit Utilities Expense; credit Accounts Payable b. debit Utilities Payable; credit Accounts Receivable c. debit Accounts Payable; credit Cash d. debit Accounts Payable; credit Utilities Payable 11. The primary difference between deferred and accrued expenses is that deferred expenses have a. been incurred and accrued expenses have not b. not been incurred and accrued expenses have been incurred c. been recorded and accrued expenses have not been incurred d. not been recorded and accrued expenses have been incurred 12. The balance in the prepaid rent account before adjustment at the end of the year is $15,000, which represents three months’ rent paid on December 1. The adjusting entry required on December 31 is a. debit Rent Expense, $5,000; credit Prepaid Rent, $5,000 b. debit Prepaid Rent, $10,000; credit Rent Expense, $5,000 c. debit Rent Expense, $10,000; credit Prepaid Rent, $5,000 d. debit Prepaid Rent, $5,000; credit Rent Expense, $5,000

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    ACCT 301/ACCT 301 Quiz 1 (25/25) ACCT 301/ACCT 301 Quiz 1 (25/25) Question 1. Which of the following statements is most applicable to the business entity concept? a. the owner is part of the business entity b. an entity is organized according to state or federal statutes c. an entity is organized according to the rules set by the FASB d. the entity is an individual economic unit for which data are recorded, analyzed, and reported 2 . Elli Catering Services previously bought equipment with an estimated market value of $45,000 and is now offering it for sale at $65,000. The Trang Restaurant Group acquired it for $10,000 in cash and a note payable of $40,000 due in 30 days. The amount used in Trang’s accounting records to record this acquisition is a. $50,000 b. $65,000 c. $10,000 d. $45,000 3. If Chesapeake Company’s total liabilities decreased by $25,000 during a period of time and owner’s equity increased by $30,000 during the same period, the amount and direction (increase or decrease) of the period’s change in total assets is a. $65,000 increase b. $5,000 decrease c. $5,000 increase d. $65,000 decrease 4. Brielle Financial Services paid $9,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to a. increase one asset, decrease another asset b. increase an asset, increase a liability c. decrease an asset, decrease a liability d. increase an asset, increase owner’s equity 5. When revenue is earned it a. increases assets, increases owner’s equity. b. increases assets, decreases owner’s equity c. increases one asset, decreases another asset d. decreases assets, increases liabilities 6 An account is said to have a debit balance if a. the amount of the debits exceeds the amount of the credits b. there are more entries on the debit side than on the credit side c. its normal balance is debit without regard to the amounts or number of entries on the debit side d. the last entry of the accounting period was posted on the debit side 7 . According to the rules of debits and credits : a. decrease Prepaid Rent with a credit and the normal balance is a credit b. increase Unearned Revenue with a credit and the normal balance is a debit c. increase Supplies Expense with a debit and the normal balance is a debit d. decrease Cash with a debit and the normal balance is a credit 8 . When the accountant at Nottingham Auto makes a payment on an Account payable she will a. debit Cash; credit Accounts Payable b. debit Accounts Receivable; credit Cash c. debit Cash; credit Supplies Expense d. debit Accounts Payable; credit Cash 9. Which of the following entries records the investment of cash by Jakob, owner of a proprietorship? a. debit Jakob, Capital; credit Accounts Receivable b. debit Cash; credit Jakob, Capital c. debit Jakob, Drawing; credit Cash d. debit Cash; credit Jakob, Drawing 10. Which of the following entries records the receipt of a utility bill from Baltimore Water Works ? a. debit Utilities Expense; credit Accounts Payable b. debit Utilities Payable; credit Accounts Receivable c. debit Accounts Payable; credit Cash d. debit Accounts Payable; credit Utilities Payable 11. The primary difference between deferred and accrued expenses is that deferred expenses have a. been incurred and accrued expenses have not b. not been incurred and accrued expenses have been incurred c. been recorded and accrued expenses have not been incurred d. not been recorded and accrued expenses have been incurred 12. The balance in the prepaid rent account before adjustment at the end of the year is $15,000, which represents three months’ rent paid on December 1. The adjusting entry required on December 31 is a. debit Rent Expense, $5,000; credit Prepaid Rent, $5,000 b. debit Prepaid Rent, $10,000; credit Rent Expense, $5,000 c. debit Rent Expense, $10,000; credit Prepaid Rent, $5,000 d. debit Prepaid Rent, $5,000; credit Rent Expense, $5,000

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    ACCT 301 - ACCT 301 Quiz 1 (25 - 25)

    Încărcat de

    teacher.theacestud
    ACCT 301/ACCT 301 Quiz 1 (25/25) ACCT 301/ACCT 301 Quiz 1 (25/25) Question 1. Which of the following statements is most applicable to the business entity concept? a. the owner is part of the business entity b. an entity is organized according to state or federal statutes c. an entity is organized according to the rules set by the FASB d. the entity is an individual economic unit for which data are recorded, analyzed, and reported 2 . Elli Catering Services previously bought equipment with an estimated market value of $45,000 and is now offering it for sale at $65,000. The Trang Restaurant Group acquired it for $10,000 in cash and a note payable of $40,000 due in 30 days. The amount used in Trang’s accounting records to record this acquisition is a. $50,000 b. $65,000 c. $10,000 d. $45,000 3. If Chesapeake Company’s total liabilities decreased by $25,000 during a period of time and owner’s equity increased by $30,000 during the same period, the amount and direction (increase or decrease) of the period’s change in total assets is a. $65,000 increase b. $5,000 decrease c. $5,000 increase d. $65,000 decrease 4. Brielle Financial Services paid $9,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to a. increase one asset, decrease another asset b. increase an asset, increase a liability c. decrease an asset, decrease a liability d. increase an asset, increase owner’s equity 5. When revenue is earned it a. increases assets, increases owner’s equity. b. increases assets, decreases owner’s equity c. increases one asset, decreases another asset d. decreases assets, increases liabilities 6 An account is said to have a debit balance if a. the amount of the debits exceeds the amount of the credits b. there are more entries on the debit side than on the credit side c. its normal balance is debit without regard to the amounts or number of entries on the debit side d. the last entry of the accounting period was posted on the debit side 7 . According to the rules of debits and credits : a. decrease Prepaid Rent with a credit and the normal balance is a credit b. increase Unearned Revenue with a credit and the normal balance is a debit c. increase Supplies Expense with a debit and the normal balance is a debit d. decrease Cash with a debit and the normal balance is a credit 8 . When the accountant at Nottingham Auto makes a payment on an Account payable she will a. debit Cash; credit Accounts Payable b. debit Accounts Receivable; credit Cash c. debit Cash; credit Supplies Expense d. debit Accounts Payable; credit Cash 9. Which of the following entries records the investment of cash by Jakob, owner of a proprietorship? a. debit Jakob, Capital; credit Accounts Receivable b. debit Cash; credit Jakob, Capital c. debit Jakob, Drawing; credit Cash d. debit Cash; credit Jakob, Drawing 10. Which of the following entries records the receipt of a utility bill from Baltimore Water Works ? a. debit Utilities Expense; credit Accounts Payable b. debit Utilities Payable; credit Accounts Receivable c. debit Accounts Payable; credit Cash d. debit Accounts Payable; credit Utilities Payable 11. The primary difference between deferred and accrued expenses is that deferred expenses have a. been incurred and accrued expenses have not b. not been incurred and accrued expenses have been incurred c. been recorded and accrued expenses have not been incurred d. not been recorded and accrued expenses have been incurred 12. The balance in the prepaid rent account before adjustment at the end of the year is $15,000, which represents three months’ rent paid on December 1. The adjusting entry required on December 31 is a. debit Rent Expense, $5,000; credit Prepaid Rent, $5,000 b. debit Prepaid Rent, $10,000; credit Rent Expense, $5,000 c. debit Rent Expense, $10,000; credit Prepaid Rent, $5,000 d. debit Prepaid Rent, $5,000; credit Rent Expense, $5,000

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    10/12/2015

    TheAceStudent:ACCT301/ACCT301Quiz1(25/25)

    ACCT301/ACCT301Quiz1(25/25)
    ACCT301/ACCT301Quiz1(25/25)
    Question
    1.Whichofthefollowingstatementsismostapplicabletothebusinessentityconcept?
    a.theownerispartofthebusinessentity
    b.anentityisorganizedaccordingtostateorfederalstatutes
    c.anentityisorganizedaccordingtotherulessetbytheFASB
    d.theentityisanindividualeconomicunitforwhichdataarerecorded,analyzed,andreported
    2.ElliCateringServicespreviouslyboughtequipmentwithanestimatedmarketvalueof$45,000
    andisnowofferingitforsaleat$65,000.TheTrangRestaurantGroupacquireditfor$10,000in
    cashandanotepayableof$40,000duein30days.TheamountusedinTrangsaccountingrecords
    torecordthisacquisitionis
    a.$50,000
    b.$65,000
    c.$10,000
    d.$45,000
    3.IfChesapeakeCompanystotalliabilitiesdecreasedby$25,000duringaperiodoftimeand
    ownersequityincreasedby$30,000duringthesameperiod,theamountanddirection(increaseor
    decrease)oftheperiodschangeintotalassetsis
    a.$65,000increase
    b.$5,000decrease
    c.$5,000increase
    d.$65,000decrease
    4.BrielleFinancialServicespaid$9,000toacreditorinpaymentofanamountowed.Theeffectof
    thetransactionontheaccountingequationwasto
    a.increaseoneasset,decreaseanotherasset
    b.increaseanasset,increasealiability
    c.decreaseanasset,decreasealiability
    d.increaseanasset,increaseownersequity
    5.Whenrevenueisearnedit
    a.increasesassets,increasesownersequity.
    b.increasesassets,decreasesownersequity
    c.increasesoneasset,decreasesanotherasset
    d.decreasesassets,increasesliabilities
    6Anaccountissaidtohaveadebitbalanceif
    a.theamountofthedebitsexceedstheamountofthecredits
    b.therearemoreentriesonthedebitsidethanonthecreditside
    c.itsnormalbalanceisdebitwithoutregardtotheamountsornumberofentriesonthedebitside
    d.thelastentryoftheaccountingperiodwaspostedonthedebitside
    7.Accordingtotherulesofdebitsandcredits:
    a.decreasePrepaidRentwithacreditandthenormalbalanceisacredit
    b.increaseUnearnedRevenuewithacreditandthenormalbalanceisadebit
    c.increaseSuppliesExpensewithadebitandthenormalbalanceisadebit
    d.decreaseCashwithadebitandthenormalbalanceisacredit
    8.WhentheaccountantatNottinghamAutomakesapaymentonanAccountpayableshewill
    a.debitCashcreditAccountsPayable
    data:text/htmlcharset=utf8,%3Ch3%20class%3D%22posttitle%20entrytitle%22%20itemprop%3D%22name%22%20style%3D%22margin%3A%200px%3B

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    b.debitAccountsReceivablecreditCash
    c.debitCashcreditSuppliesExpense
    d.debitAccountsPayablecreditCash
    9.WhichofthefollowingentriesrecordstheinvestmentofcashbyJakob,ownerofa
    proprietorship?
    a.debitJakob,CapitalcreditAccountsReceivable
    b.debitCashcreditJakob,Capital
    c.debitJakob,DrawingcreditCash
    d.debitCashcreditJakob,Drawing
    10.WhichofthefollowingentriesrecordsthereceiptofautilitybillfromBaltimoreWaterWorks?
    a.debitUtilitiesExpensecreditAccountsPayable
    b.debitUtilitiesPayablecreditAccountsReceivable
    c.debitAccountsPayablecreditCash
    d.debitAccountsPayablecreditUtilitiesPayable
    11.Theprimarydifferencebetweendeferredandaccruedexpensesisthatdeferredexpenseshave
    a.beenincurredandaccruedexpenseshavenot
    b.notbeenincurredandaccruedexpenseshavebeenincurred
    c.beenrecordedandaccruedexpenseshavenotbeenincurred
    d.notbeenrecordedandaccruedexpenseshavebeenincurred
    12.Thebalanceintheprepaidrentaccountbeforeadjustmentattheendoftheyearis$15,000,
    whichrepresentsthreemonthsrentpaidonDecember1.TheadjustingentryrequiredonDecember
    31is
    a.debitRentExpense,$5,000creditPrepaidRent,$5,000
    b.debitPrepaidRent,$10,000creditRentExpense,$5,000
    c.debitRentExpense,$10,000creditPrepaidRent,$5,000
    d.debitPrepaidRent,$5,000creditRentExpense,$5,000
    13.MarylandMedicalLLChasabalanceintheofficesuppliesaccountonJune1of$5,200,
    purchasedsuppliesduringJunefor$2,500,andthesuppliesonhandatJune30were$2,000.The
    adjustingentrywillbeintheamountof
    a.$4,500
    b.$2,500
    c.$9,700
    d.$5,700
    14.WhichofthefollowingstatementsistrueiftheusualadjustingentrytoPrepaidInsuranceto
    recordexpiredinsurancewasomitted.
    a.Totalassetsattheendoftheyearwillbeunderstated.
    b.Ownersequityattheendoftheyearwillbeunderstated.
    c.Netincomefortheyearwillbeoverstated.
    d.InsuranceExpensewillbeoverstated.
    15.SadieLiteraryServicespaysweeklysalariesof$20,000onFridayforafivedayweekendingon
    thatday.TheadjustingentrynecessaryattheendofthefiscalperiodendingonThursdayis
    a.debitSalariesPayable,$16,000creditCash,$16,000
    b.debitSalaryExpense,$16,000creditDrawing,$16,000
    c.debitSalaryExpense,$16,000creditSalariesPayable,$16,000
    d.debitDrawing,$16,000creditCash,$16,000
    16.AsummaryofselectedledgeraccountsappearbelowforMorganasVideoEditingServicesfor
    the2014calendaryearend.
    Morgana,Capital

    12/31
    data:text/htmlcharset=utf8,%3Ch3%20class%3D%22posttitle%20entrytitle%22%20itemprop%3D%22name%22%20style%3D%22margin%3A%200px%3B

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    7,000
    1/1
    5,000

    12/31
    17,000

    Morgana,Drawing

    6/30
    2,000
    12/31
    7,000
    11/30
    5,000

    IncomeSummary

    12/31
    15,000
    12/31
    32,000
    12/31
    17,000

    Netincomefortheperiodis
    a.$17,000
    b.$22,000
    c.$7,000
    d.$15,000
    17.SelectoneofthefollowingaccountsthatwillbeclosedtotheCapitalaccountattheendofthe
    fiscalyear?
    a.RentExpense
    b.FeesEarned
    c.IncomeSummary
    d.DepreciationExpense
    18.Thepostclosingtrialbalanceincludes
    a.ShaminaVenkat,Drawing
    b.SuppliesExpense
    c.FeesEarned
    d.UnearnedRent
    19.ThefollowingaccountsweretakenfromtheAdjustedTrialBalancecolumnsoftheworksheet
    forVatsalaBakeryLLC:
    AccumulatedDepreciation
    $2,000
    FeesEarned
    15,000
    DepreciationExpense
    1,000
    data:text/htmlcharset=utf8,%3Ch3%20class%3D%22posttitle%20entrytitle%22%20itemprop%3D%22name%22%20style%3D%22margin%3A%200px%3B

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    InsuranceExpense
    500
    PrepaidInsurance
    4,500
    Supplies
    1,200
    SuppliesExpenses
    3,500
    NetincomefortheperiodforVatsalais
    a.$2,300
    b.$10,000
    c.$4,300
    d.$5,000
    20.AlaskaSnowRemovalisreportingNetIncomeof$90,000.However,adjustingentrieshavenot
    beenmadeattheendoftheperiodforsuppliesexpenseof$2,700andaccruedsalariesof$1,300.
    Netincome,ascorrected,forAlaskais
    a.$87,300
    b.$90,000
    c.$88,700
    d.$86,000

    21.WhatistheproperadjustingentryatJune30,theendofthefiscalyear,basedonaprepaid
    insuranceaccountbalancebeforeadjustment,$15,500,andunexpiredamountsperanalysisof
    policies,$4,500?
    a.debitInsuranceExpense,$4,500creditPrepaidInsurance,$4,500
    b.debitInsuranceExpense,$15,500creditPrepaidInsurance,$15,500
    c.debitPrepaidInsurance,$11,500creditInsuranceExpense,$11,500
    d.debitInsuranceExpense,$11,000creditPrepaidInsurance,$11,000
    22.OnNovember1ofthecurrentyear,theassetsandliabilitiesofRamMysore,areasfollows:
    Cash,$10,000AccountsReceivable,$8,200Supplies,$1,050Land,$25,000AccountsPayable,
    $6,530.Whatistheamountofownersequity(RamMysorescapital)asofNovember1ofthe
    currentyear?
    a.$37,720
    b.$44,430
    c.$21,500
    d.$50,780
    23.SueKrebsisthesoleownerandoperatorofImmigrantRelocatorServices.Asoftheendofits
    accountingperiod,December31,2005,ImmigrantRelocatorServiceshasassetsof$925,000and
    liabilitiesof$285,000.During2006,SueKrebsinvestedanadditional$50,000andwithdrew$30,000
    fromthebusiness.Whatistheamountofnetincomeduring2006forImmigrantRelocatorServices
    ,assumingthatasofDecember31,2006,assetswere$980,000,andliabilitieswere$255,000?
    $95,000
    $65,000
    $165,000
    $725,000
    24.Ifbeginningcapitalwas$65,000,endingcapitalis$43,000,andtheownerswithdrawalswere
    $16,000,theamountofnetincomeornetlosswas
    a.netincomeof$37,000
    b.netincomeof$8,000
    c.netlossof$22,000
    data:text/htmlcharset=utf8,%3Ch3%20class%3D%22posttitle%20entrytitle%22%20itemprop%3D%22name%22%20style%3D%22margin%3A%200px%3B

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    d.netlossof$6,000
    25.Whichofthefollowingentriesrecordsthereceiptofcashfortwomonthsrent?Thecashwas
    receivedinadvanceofprovidingtheservice.
    a.PrepaidRent,debitRentRevenue,credit.
    b.Cash,debitUnearnedRent,credit.
    c.Cash,debitPrepaidRent,credit.
    d.Cash,debitRentExpensecredit.
    ACCT301/ACCT301Quiz1(25/25)

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