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accounting mcq quiz




Question;1) Which of the following transactions would cause one asset to increase and another asset to decrease?A. The owner invested cash in the businessb. the business paid a creditorc. the business incurred an expense on creditd. the business bought supplies for cash.2) Bob purchased a new computer for the company on account. The transaction will.a. increase computer, increase capitalb. decrease cash, increase accounts payablec. decrease cash, increase computerd. increase computer, increase accounts payable3) Mary invested cash in her new business. What effect will this have?a. increase an asset and increase a liabilityb. decrease as asset and increase a liabilityc. increase an asset and increase owner's equityd. increase as asset and decrease owner's equity4) Bonnie's Baskets purchases $4,000 worth of office equipment on account. This causesa. cash and capital to decreaseb. office equipment and accounts payable to increasec. office equipment to decrease and accounts payable to increased. accounts payable to increase and capital to decrease5) Which of the following would result if a business purchased equipment paying a 40% down payment in cash?a. equipment would increase and cash would decreaseb. accounts payable would increasec. since the equipment has not been paid in full, there is nothing to recordd. both and b are correct.6) Katie's vegetarian restaurant, with total assets of $90,000, borrows $15,000 from. Which of the following is a true statement upon borrowing the money?a. total assets are now $105,000b. total assets are now $80,000c. total assets are now $15,000d. total assets are now $75,0007) Which of the following will be recorded in the owner's equity column as an increase?a. an exchange of assetsb. the purchase of an asset on creditc. an investment by the ownerd. a withdrawal by the owner8) How does the purchase of office equipment on account affect the accounting equatiion?a. assets increase, liabilities decreaseb. assets increase, owner's equity increasesc. assets increase, liabilities increased. liabilites increase, owner's equity decreases9) If total liabilities are $1,000 and total assets are $8,000, owner's equity must be.a. $7,000b. $3,000c.$10,000d. $13,000


Paper#42453 | Written in 18-Jul-2015

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