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accounting mcq quiz




Question;If 'Ol Fashioned toys' revenues are less than its expenses;during the accounting period, then.;a. owner's withdrawals decrease net income;b. net income causes liabilities to decrease;c. the business will incur a loss;c. owner's withdrawals increase owner's equity;2. The statement of owner's equity contains the;a. owner's capital for the beginning of the period;b. liabilities of the company;c. total amount owed by credit customers;d. balance in the cash account;3. Ryan withdrew cash from the business to pay his personal;cell ophone bill. The expanded accounting equation changes include;a. increase in both cash and withdrawal;b. decrease in both cash and withdrawal;c. decrease in cash and increase in withdrawal;d. increase in cash and decrease in withdrawal;4. 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;a. $3,600;b. ($2,100;c. $975;d. ($1,425;5. An expense should be recorded when;a. the bill is paid;b. the expense is incurred;c. a bill is rreceived in the mail.;d. None of the above answers are correct.;6. The increase or decrease in the owner's equity is;reported on the;a. income statement;b. statement of owner's equity;c. balance sheet;d. all of these answers are correct;7. Expense;a. are costs the company incurs in carrying on operations;b. are a subdivision of owner's equity;c. record personal expenses not related to the business;d. both A and B are correct;8. Which of the following is included in the balance sheet?;a. revenue;b. salaries expense;c. utilities expense;d. accounts payable;9. Which financial statement is considered a link between;the income statement and balance sheet?;a. statement of cash flows;b. statement of company assets;c. statement of company liquidity;d. statement of owner's equity;10. Which of the following transactions has no effect on;owner's equity?;a. paying salaries expense;b. equipment purchase;c. billing for services rendered;d. a withdrawal;11. Carrie billed her legal clients $6,000 for legal work;completed during the month. This transaction will;a. cause a $6,000 increase in revenues and liabilities;b. cause a $6,000 increase in revenues and a decrease in;liabilities;c. cause a $6,000 increase in assets and revenues;d. not be recorded until the cash is collected;12. An accounting report that shows the changes in capital;during the accounting period is;a. a balance sheet;b. an income statement;c. a statement of owner's equity;d. all of these ansers are correct;13. The financial statement that shows revenue and expenses;for a period of time is the;a. balance sheet;b. income statement;c. statement of owner's equity;d. statement of cash flows;14. Which of the following is not one of the four basic;financial statements?;a. statement of cash flows;b. income statement;c. statement of company position;d. balance sheet;15. When services are rendered but payment is not made;which account would be increased?;a. accounts receivable;b. accounts payable;c. cash;d. withdrawal;16. The net income or net loss is calculated on the;a. balance sheet;b. statement of owner's equity;c. income statement;d. none of the above answers are correct;17. Which accounts are affected when the company buys;supplies on account?;a. assets and capital;b. liabilities and capital;c. assets and liabilities;d. none of the above answers are correct;18. If beginning capital was $110,000, ending capital is;$95,000, and the owner's withdrawals were $10,000, the amount of net income or;net loss was;a. net income of $5,000;b. net income of $15,000;c. net loss of $15,000;d. net loss of $5,000;19. Which of the following items are on both the balance;sheet and the statement of owner's equity?;a. net loss;b. capital;c. additional owner's investment;d. owner's withdrawals


Paper#42478 | Written in 18-Jul-2015

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