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POST ACC111 UNIT 2 CH 2 SELF QUIZ

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Question;Question 1;0 out of 0 points;Correct;The duality of effects when recording a transaction in;accounting can best be described as follows;When a transaction is recorded in the accounting system, at;least two effects on the basic accounting equation will result.;When an exchange takes place between two parties, both;parties must record the transaction.;When a transaction is recorded, both the balance sheet and;the income statement must be impacted.;When a transaction is recorded, one account will always;increase and one account will always decrease.;Question 2;0 out of 0 points;Correct;Total assets on a balance sheet prepared on any date must;agree with which of the following?;Answers;The sum of total liabilities and net income as shown on the;income statement.;The sum of total liabilities and equity.;The sum of total liabilities and sales.;The sum of total liabilities, sales and expense.;Question 3;0 out of 0 points;Correct;A company was recently formed with $ 50,000 cash contributed;to the company by stock-holders. The company then borrowed $ 20,000 from a bank;and bought $ 10,000 of supplies on account. The company also purchased $ 50,000;of equipment by paying $ 20,000 in cash and issuing a note for the remainder.;What is the amount of total assets to be reported on the balance sheet?;Answers;$ 110,000;$ 90,000;$ 100,000;$120,000;Question 4;0 out of 0 points;Correct;Which of the following statements are true regarding debits;and credits?;Answers;In any given transaction, the total dollar amount of the;debits and the total dollar amount of the credits must be equal.;In some accounts debits decrease the account and in other;accounts they increase the account.;In some accounts debits decrease the account and in other;accounts they increase the account.;All of the above.;Question 5;0 out of 0 points;Correct;The cost principle states;Answers;Transactions should be recorded at their original cost to;the company.;Transactions should be recorded at their market value.;Transactions should be recorded at their sticker price.;Transactions should be recorded at estimated worth to the;company.;Question 6;0 out of 0 points;Correct;Which of the following is the correct order in the;accounting cycle of recording of transactions?;Answers;Prepare financial statements, post to the ledger, record;transactions in the journal.;Prepare financial statements, record transactions in the;journal, post to the ledger.;Post to the ledger, record transactions in the journal;prepare financial statements.;Record transactions in the journal, post to the ledger;prepare financial statements..;Question 7;0 out of 0 points;Correct;In regard to the balance sheet, which of the following;statements is true?;Income and expenses are reported on the balance sheet.;The balance sheet reflects both a point in time and a period;of time.;The balance sheet reflects a period of time.;The balance sheet reflects a point in time.;Question 8;0 out of 0 points;Correct;Which of the following is false?;Debits increase assets.;Credits decrease assets.;Debits increase liabilities.;Credits increase liabilities.;Debits decrease equity.;Credits increase equity.;Question 9;0 out of 0 points;Correct;In regard to current assets which of the following is false?;Current assets are assets that you recently bought.;Current assets are assets which will be used up in 12 months;or less.;Current assets are assets which are cash or will be;converted into cash within 12 months.;Current assets are shown first in the asset section of the;balance sheet.;Question 10;0 out of 0 points;Correct;In regard to current liabilities which of the following is;false?;Current liabilities are liabilities that you recently paid.;Accounts payable is normally a current liability.;A $100,000 note payable with $10,000 of it due in six months;would be classified on the balance sheet as a $10,000 current liability and a;$90,000 long term liability.;Current liabilities are debts and obligations that must be;paid, settled or fulfilled within 12 months or less.

 

Paper#38793 | Written in 18-Jul-2015

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