Name: QUIZ #1 Accounting Essentials Date: Bookkeeping and…

Question Answered step-by-step Name: QUIZ #1 Accounting Essentials Date: Bookkeeping and… Name:                                                            QUIZ #1                                                                                                Accounting EssentialsDate:                                                  Bookkeeping and Accounting CHAPTER 1  TRUE/FALSE Questions.  Write ‘T’ if the statement is true and ‘F’ if the statement is false. 1) If the assets owned by a business total $100,000, owner’s equity must also total $100,000.              1) _______ 2) The left side of the accounting equation must always equal the right side of the equation.             2) __T____ 3) Generally Accepted Accounting Principles are the procedures and guidelines that should be followed during the accounting process.                                                                                                          3) ___T____ 4) When expenses are greater than revenue, net income is the result.                                                           4) ___F___ 5) The statement of owner’s equity is the link between the income statement and balance sheet.      5) ______ The following questions are MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question. 6) The purpose of the accounting process is to provide financial information about                               6) _______A) small businesses.        B) large corporations.C) sole proprietorships.  D) All of these answers are correct. 7) Which of the following would have claims against the assets of the business?                                    7) _______A) Cash and liabilities.   B) Liabilities and owner’s equity.C) Equipment and liabilities         D) Cash and Equipment. 8) The financial statement that shows business results in terms of revenue and expenses is                8) ______A) the statement of cash flows.    B) an income statement.C) a balance sheet.            D) a statement of owner’s equity. 9) An accounting report that shows the changes in capital during the accounting period is                9) ______A) a balance sheet.            B) a statement of owner’s equity.C) an income statement. D) All of these answers are correct. 10) Which of the following is not a type of business organization?                                                                10) ______A) Corporation  B) Sole proprietorshipC) Partnership   D) Operation 11) Accounting provides information to                                                                                                                  11) ______A) investors.       B) managers.C) government.  D) All of these answers are correct 12) Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes include:                                                                                                                                                                12) ______A) Cash increases and Accounts Receivable decreases $12,000.B) Cash and Capital increase, $12,000.C) Cash and Revenue increase $12,000.D) Accounts Receivable decreases and Capital increases $12,000. 13) The Sarbanes-Oxley Act was passed to                                                                                                             13) ______A) improve the accuracy of the company’s financial reporting.B) replace all of the old accounting procedures with new ones.C) prevent fraud at public companies.D) Both A and C are correct. 14) Determine the ending capital balance of a business which had a beginning capital balance of $1,970, additional investments of $530, withdrawals of $750, revenue of $3,790, and expenses of $2,600. $______________________ The following questions are SHORT ANSWER.   Ensure you answer all parts of the question.  15) What does CFO stand for, and who does he usually report to? 16) What are the differences of sole proprietorships, partnerships and corporations? (requires min 3 points for each type of organization) 17) What is the difference between Bookkeeping and Accounting? 18) How are businesses classified by activity?  19) What type’s of organizations are not-for profit?  Can a not-for-profit agency make money & keep the profit? 20) Name the accounting reports created from the expanded accounting equation?  What information must appear in the header of each report that is similar to all 3?   21) Indicate whether each of the following represents (A) Asset, (L) Liability, or (OE) Owner’s Equity: 1. ________ Office Supplies2. ________ Accounts Payable3. ________ Capital4. ________ Cash5. ________ Withdrawal6. ________ Land7. ________ Accounts Receivable8. ________ Expense9. ________ Equipment10. ________ Revenue 22) Explain the purpose of the following: a. Income Statement b. Statement of Owner’s Equity c. Balance Sheet 23) What are the 3 elements of the basic accounting equation? 24) How is Owner’s Equity subdivided? 25) What is a Shift in Assets? 26) Record the following transactions into the expanded accounting equation for the Bob’s Law Firm. Note that all titles have beginning balances. (You will need to determine the beginning capital balance.)a. Provided legal services for cash, $1,200b. Billed customers for services rendered, $2,400c. Received and paid the monthly utility bill, $300d. Collected $600 on account from customerse. Paid supplies expense, $250f. Withdrew $300 cash for personal use                 Bob’s Law Firm ASSETS=LIAB.OWNER’S EQUITY Cash  Accts.Receivable=Accts PayableBob’s Capital-Bob’sWithd.+Rev -Expbeg.$900$100=$300??   a.        b.        c.        d.        e.        f.        T                  __________________   =  ____________________  Accounting Business Financial Accounting ACCOUNTING 120 Share QuestionEmailCopy link Comments (0)