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POST ACC111 UNIT 2 CH 2 QUIZ

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Question;Question 1;2 out of 2 points;Correct;Post Company uses $10,000 in cash to pay $10,000 on accounts;payable. This would result in;$10,000 credit to cash and a $10,000 credit to accounts;payable.;$10,000 debit to cash and a $10,000 debit to accounts;payable.;$10,000 credit to cash and a $10,000 debit to accounts;payable.;$10,000 debit to cash and a $10,000 credit to accounts;payable.;Question 2;2 out of 2 points;Correct;A company was recently formed with $ 100,000 cash;contributed to the company by stock-holders. The company then borrowed $ 50,000;from a bank and bought a $ 20,000 vehicle for cash. They also purchased $10,000;of equipment by paying $ 2,000 in cash and issuing a note for the remainder.;What is the amount of total assets to be reported on the balance sheet?;$ 158,000;$ 160,000;$ 162,000;$ 100,000;Question 3;2 out of 2 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 4;2 out of 2 points;Correct;Which of the following are current assets?;Cash, accounts receivable, inventory, accounts payable;Cash, accounts receivable, inventory, supplies;Cash, equipment, inventory, vehicle;Cash, accounts receivable, inventory, building;Question 5;2 out of 2 points;Correct;Which of the following true In regard to current;liabilities?;Current liabilities are liabilities that you recently paid.;Notes payable is normally a current liability.;Equipment, vehicles, buildings and land are all current;liabilities.;Current liabilities are debts and obligations that must be;paid within 12 months or less.;Question 6;2 out of 2 points;Correct;A company purchases $23,000 of supplies in the current month;and promises to pay for them next month. How would the company record a;liability for the supplies?;This liability is not a recognized liability until the;payment is due.;$23,000 would be posted as a credit to accounts payable.;$23,000 would be posted as a credit to supplies expense.;$23,000 would be posted as a debit to accounts payable.;Question 7;2 out of 2 points;Correct;Alpha Company borrows $200,000 from its bank and buys;equipment. How does this transaction affect the accounting equation?;Assets and Liabilities both increase by $200,000.;Assets and Equity both decrease by $200,000.;Assets, liabilities and equity are unchanged.;Equity increase by $200,000 and liabilities decrease by;$200,000.;Question 8;2 out of 2 points;Correct;Bravo Company purchases Land for $200,000 paying cash of;$$80,000 and signing a note for the balance. The accounting entry would be;Debit Land $120,000, Credit Notes Payable $120,000.;Debit Land $200,000, Credit Cash $200,000.;Debit Land $200,000, Credit Cash $80,000, Credit Notes;Payable $120,000.;Debit Land $80,000, Credit Cash $80,000.

 

Paper#38795 | Written in 18-Jul-2015

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