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Accounts Multiple Choice Questions




Question;If 'Ol Fashioned toys' revenues are less than its expenses during the accounting period, then.;a. owner's withdrawals decrease net incomeb. net income causes liabilities to decreasec. the business will incur a lossc. 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 periodb. liabilities of the companyc. total amount owed by credit customersd. 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 withdrawalb. decrease in both cash and withdrawalc. decrease in cash and increase in withdrawald. 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. $3,600b. ($2,100c. $975d. ($1,425;5. An expense should be recorded when;a. the bill is paidb. the expense is incurredc. 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 statementb. statement of owner's equityc. balance sheetd. all of these answers are correct;7. Expensea. are costs the company incurs in carrying on operationsb. are a subdivision of owner's equityc. record personal expenses not related to the businessd. both A and B are correct;8. Which of the following is included in the balance sheet?a. revenueb. salaries expensec. utilities expensed. accounts payable;9. Which financial statement is considered a link between the income statement and balance sheet?a. statement of cash flowsb. statement of company assetsc. statement of company liquidityd. statement of owner's equity;10. Which of the following transactions has no effect on owner's equity?a. paying salaries expenseb. equipment purchasec. billing for services renderedd. a withdrawal;11. Carrie billed her legal clients $6,000 for legal work completed during the month. This transaction willa. cause a $6,000 increase in revenues and liabilitiesb. cause a $6,000 increase in revenues and a decrease in liabilitiesc. cause a $6,000 increase in assets and revenuesd. not be recorded until the cash is collected;12. An accounting report that shows the changes in capital during the accounting period isa. a balance sheetb. an income statementc. a statement of owner's equityd. all of these ansers are correct;13. The financial statement that shows revenue and expenses for a period of time is thea. balance sheetb. income statementc. statement of owner's equityd. statement of cash flows;14. Which of the following is not one of the four basic financial statements?a. statement of cash flowsb. income statementc. statement of company positiond. balance sheet;15. When services are rendered but payment is not made, which account would be increased?a. accounts receivableb. accounts payablec. cashd. withdrawal;16. The net income or net loss is calculated on thea. balance sheetb. statement of owner's equityc. income statementd. none of the above answers are correct;17. Which accounts are affected when the company buys supplies on account?a. assets and capitalb. liabilities and capitalc. assets and liabilitiesd. 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 wasa. net income of $5,000b. net income of $15,000c. net loss of $15,000d. 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 lossb. capitalc. additional owner's investmentd. owner's withdrawals


Paper#43162 | Written in 18-Jul-2015

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