Practice Quiz 3A
Complete the following quiz for the lesson: Accounting Cycle Part 1
The concept that assets are typically valued on a company's balance sheet at their value when first acquired (price paid upon acquisition or fair market value at the time of receipt) is referred to as the *
1 point
Which of the following is NOT required under GAAP? *
0 points
Debit entries increase: *
1 point
A debit entry to an expense account has an increasing effect on a company's expenses which results in a decreasing effect on its net income, retained earnings and owners' equity. *
1 point
If an owner transfers cash from his personal funds to the business bank account as a capital contribution, then the effect on the company's balance sheet would be *
1 point
Which of the following events would cause a net decrease in a company's total assets? *
1 point
The purchase of inventory with cash *
1 point
A distribution of profits to stockholders of a corporation *
1 point
Bruce Manufacturing purchased equipment for $16,000, paying $9,000 cash and executing a $7,000 note payable. The entry for this transaction would result in a *
1 point
The journal entry to record a company's purchase of inventory on account would include *
1 point
The journal entry to record a company's purchase of inventory on account would include *
1 point
The journal entry to record a company's sale of inventory to a customer on account would include debits to which of the following accounts? *
1 point
The journal entry to record a company's cash collection of accounts receivable would include a credit to the following account: *
1 point
The journal entry to record the payment of a prior month's utility bill that was previously recorded would include a debit to the following account: *
1 point
The journal entry to record the payment of a prior month's utility bill that was not previously recorded would include a debit to the following account: *
1 point
The journal entry to record the cash distribution of a company's profit to its owners would include a debit to the following account: *
1 point
On December 30, a firm's balance sheet showed assets of $390,000, liabilities of $180,000, and owner's equity of $210,000. On December 31 the firm (1) paid off Accounts Payable of $49,000, and (2) paid rent of $16,000 due on their building (not previously recorded). If a new balance sheet is prepared after these transactions, assets, liabilities, and owner's equity, respectively, would be *
1 point
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