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
