chapter 1 quiz

Accounting Concepts and Accounting Concepts and ProceduresProcedures

Chapter 1

1. A business that has only one 1. A business that has only one owner is known as a:owner is known as a:

A. PartnershipB. CorporationC. Sole ProprietorshipD. Trust

1. A business that has only one 1. A business that has only one owner is known as a:owner is known as a:

2. A business that is owned by 2. A business that is owned by stockholders is known as a:stockholders is known as a:

3. Companies like Kohl’s and 3. Companies like Kohl’s and Macy’s would be considered:Macy’s would be considered:

A. Service CompaniesB. ManufacturersC. Merchandise CompaniesD. Single Product Companies

3. Companies like Kohl’s and 3. Companies like Kohl’s and Macy’s would be considered:Macy’s would be considered:

A. Service CompaniesB. ManufacturersC. Merchandise CompaniesD. Single Product Companies

4. A financial consulting firm would 4. A financial consulting firm would be considered a:be considered a:

A. Service CompanyB. ManufacturerC. Merchandise CompanyD. Single Product Company

4. A financial consulting firm would 4. A financial consulting firm would be considered a:be considered a:

A. Service CompanyB. ManufacturerC. Merchandise CompanyD. Single Product Company

5. Items such as cash and supplies 5. Items such as cash and supplies would be classified as:would be classified as:

A. AssetsB. EquitiesC. LiabilitiesD. Capital Expenditures

5. Items such as cash and supplies 5. Items such as cash and supplies would be classified as:would be classified as:

A. AssetsB. EquitiesC. LiabilitiesD. Capital Expenditures

6. Which of the following would be 6. Which of the following would be considered a liability?considered a liability?

A. Accounts Receivable B. Petty Cash FundC. Electric Bill D. Accounts Payable

6. Which of the following would be 6. Which of the following would be considered a liability?considered a liability?

A. Accounts Receivable B. Petty Cash FundC. Electric Bill D. Accounts Payable

7. If a company purchased supplies 7. If a company purchased supplies on credit, what would occur?on credit, what would occur?

A. Accounts Receivable would decrease.B. Accounts Receivable would increase.C. Accounts Payable would increase.D. Accounts Payable would decrease.

7. If a company purchased supplies 7. If a company purchased supplies on credit, what would occur?on credit, what would occur?

A. Accounts Receivable would decrease.B. Accounts Receivable would increase.C. Accounts Payable would increase.D. Accounts Payable would decrease.

8. When the owner makes an 8. When the owner makes an investment of cash in the business, investment of cash in the business, what occurs?what occurs?A. Cash IncreasesB. Cash DecreasesC. Drawing Account IncreasesD. Capital Decreases

9. The standard accounting 9. The standard accounting equation is:equation is:A. Assets= Owner’s Equity - LiabilitiesB. Assets= Liabilities + Owner’s EquityC. Assets= Liabilities – Owner’s EquityD. Assets + Liabilities = Owner’s Equity

10. All of the following are 10. All of the following are considered assets considered assets exceptexcept::

A. SuppliesB. Office EquipmentC. Accounts ReceivableD. Capital

10. All of the following are 10. All of the following are considered assets considered assets exceptexcept::

A. SuppliesB. Office EquipmentC. Accounts ReceivableD. Capital

11. A balance sheet contains all of 11. A balance sheet contains all of the following accounts the following accounts exceptexcept::

A. LiabilitiesB. Owner’s EquityC. ExpensesD. Assets

11. A balance sheet contains all of 11. A balance sheet contains all of the following accounts the following accounts exceptexcept::

A. LiabilitiesB. Owner’s EquityC. ExpensesD. Assets

12. A net loss occurs when:12. A net loss occurs when:

A. Revenues exceed ExpensesB. Expenses exceed RevenuesC. Assets exceed LiabilitiesD. Liabilities exceed Assets

12. A net loss occurs when:12. A net loss occurs when:

A. Revenues exceed ExpensesB. Expenses exceed RevenuesC. Assets exceed LiabilitiesD. Liabilities exceed Assets

13. Cash taken by the owner from 13. Cash taken by the owner from the business for personal use is the business for personal use is known as a(n):known as a(n):A. LiabilityB. WithdrawalC. ExpenseD. Loss

14. The Statement of Owner’s 14. The Statement of Owner’s Equity:Equity:A. Determines the Capital balance at the end of the monthB. Determines whether a Net Income or Net Loss occurred during the monthC. Determines whether Assets = Liabilities + Owner’s EquityD. Determines how much was paid in expenses for the month

15. Which of the following is the 15. Which of the following is the correct order in which financial correct order in which financial statements are to be completed?statements are to be completed?A. Balance Sheet, Statement of Owner’s Equity, Income StatementB. Statement of Owner’s Equity, Balance Sheet, Income StatementC. Income Statement, Statement of Owner’s Equity, Balance SheetD. Income Statement, Balance Sheet, Statement of Owner’s Equity

chapter 1 quiz

Education

college accounting

practical approach

accounts receivable

accounts payable

standard accounting

owners equity liabilities

liabilities owners equity

cash decreases