Question;The Sarbanes-Oxley ActQuestion 1 of 20The Sarbanes-Oxley Act was passed toA. prevent fraud at public companies. B. replace all of the old accounting procedures with new ones. C. improve the accuracy of the company?s financial reporting. D. Both A and CQuestion 2 of 20 Which of the following would result if the business purchased supplies on credit?A. Supplies would increase, and Cash would decrease.B. Supplies would increase, and Capital would increase. C. Supplies would increase, and Accounts Payable would increase.D. The purchase of supplies isn?t a business transaction. Question 3 of 20 How does the purchase of office equipment on account affect the accounting equation?A. Assets increase, and liabilities decrease.B. Assets increase, and owner?s equity increases. C. Assets increase, and liabilities increase.D. Liabilities increase, and owner?s equity decreases. Question 4 of 20 Logan?s Motor Sports buys $30,000 of equipment on credit. Which of the following is a true statement?A. Total assets increase.B. Total assets are unchanged.C. Total liabilities decrease.D. Total liabilities are unchanged.Question 5 of 20 Bob purchased a new computer for the company on account. The transaction willA. increase Computer and increase Capital.B. decrease Cash and increase Accounts Payable.C. decrease Cash and increase Computer.D. increase Computer and increase Accounts Payable.Question 6 of 20 5.0 PointsIf total liabilities are $1,000 and total assets are $8,000, owner?s equity must beA. $7,000.B. $3,000. C. $10,000. D. $13,000.Question 7 of 20 Assets are equal toA. liabilities + owner?s equity.B. liabilities ? owner's equity.C. liabilities ? revenues.D. revenues ? expenses. Question 8 of 20 Strum Hardware has total assets of $50,000. What are the total assets if new equipment is purchased for $10,000 cash?A. $45,000B. $50,000C. $55,000D. $60,000Question 9 of 20 Katie?s Vegetarian Restaurant, with total assets of $90,000, borrows $15,000 from the bank. Which of the following is a true statement upon borrowing the money?A. Total assets are now $105,000.B. Total assets are now $80,000. C. Total assets are now $15,000.D. Total assets are now $75,000.Question 10 of 20 Which transaction would cause one asset to increase and another asset to decrease? A. The owner invested cash in the business.B. The business paid a creditor.C. The business incurred an expense on credit.D. The business bought supplies for cash.Question 11 of 20 Which of the following is an advantage of a sole proprietorship form of business?A. There?s limited personal risk.B. The business can continue indefinitely.C. The owner makes all the decisions. D. All of the aboveQuestion 12 of 20 5.0 PointsA legal firm would be considered aA. merchandise company.B. manufacturer.C. service company.D. None of the aboveQuestion 13 of 20 Which of the following is not a type of business organization?A. CorporationB. PartnershipC. Sole proprietorshipD. OperationQuestion 14 of 20 Mary invested cash in her new business. Which effect will this have?A. Increase an asset, increase a liabilityB. Decrease an asset, increase a liabilityC. Increase an asset, increase owner?s equityD. Increase an asset, decrease owner?s equity Question 15 of 20 Which of the following would result if a business purchased equipment with a 40% down payment in cash?A. Equipment would increase, and Cash would decrease.B. Accounts Payable would increase.C. Since the equipment hasn?t been paid in full, there?s nothing to record.D. Both A and BQuestion 16 of 20 The claims of creditors against the assets areA. expenses.B. revenues.C. liabilities.D. owner?s equity.Question 17 of 20 Bonnie?s Baskets purchases $4,000 worth of office equipment on account. This causesA. Cash and Capital to decrease.B. Office Equipment and Accounts Payable to increase. C. Office Equipment to decrease and Accounts Payable to increase.D. Accounts Payable to increase and Capital to decrease.Question 18 of 20 The purchase of supplies for cash would affect which account category?A. AssetsB. LiabilitiesC. CapitalD. Expense Question 19 of 20 If total liabilities are $18,000 and owner?s equity is $21,000, the total assets must beA. $39,000.B. $5,000.C. $20,000.D. $17,000.Question 20 of 20 The balance sheet containsA. liabilities, expenses, and capital.B. assets, liabilities, and revenues.C. expenses, assets, and cash.D. assets, liabilities, and owner?s equity.
Paper#40979 | Written in 18-Jul-2015Price : $22