Test
FA chapter 2
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Preguntas del test (20)
1A shareholder’s investment of cash into the business will
- Adecrease total assets.
- Bdecrease total liabilities.
- Cincrease shareholders’ equity
- Dhave no effect on total assets.
2Purchasing a laptop computer on account will
- Aincrease total assets.
- Bhave no effect on shareholders’ equity
- Cincrease total liabilities.
- Dall of the above.
3Performing a service on account will
- Aincrease total liabilities.
- Bincrease shareholders’ equity
- C. increase total assets.
- Dboth b and c
4 Receiving cash from a customer on account will
- Aincrease total assets.
- Bdecrease liabilities.
- Cincrease shareholders’ equity
- Dhave no effect on total assets.
5Purchasing computer equipment for cash will
- Adecrease both total assets and shareholders’ equity
- Bdecrease both total liabilities and shareholders’ equity.
- Chave no effect on total assets, total liabilities, or shareholders’ equity
- Dincrease both total assets and total liabilities.
6Purchasing a building for $110,000 by paying cash of $15,000 and signing a note
payable for $95,000 will- Adecrease total assets and increase total liabilities by $15,000.
- Bincrease both total assets and total liabilities by $95,000.
- C. increase both total assets and total liabilities by $110,000.
- Ddecrease both total assets and total liabilities by $15,000.
7What is the effect on total assets and shareholders’ equity of paying the telephone bill
as soon as it is received each month?- Atotal assets: decrease
Shareholders' equity: decrease - BTotal assets: no effect
Shareholders' equity: decrease - CTotal assets: no effect
Shareholders' equity: No effect - DTotal assets: decrease
Shareholders' equity: no effect
- Atotal assets: decrease
8Which of the following transactions will increase an asset and increase a liability?
- APurchasing office equipment for cash
- BPaying an account payable
- CBuying equipment on account
- DIssuing shares
9 Which of the following transactions will increase an asset and increase shareholders’
equity?- APerforming a service on account for a customer
- BBorrowing money from a bank
- CPurchasing supplies on account
- DCollecting cash from a customer on an account receivable
10Where do we first record a transaction?
- AJournal
- BAccount
- CLedger
- DTrial balance
11Which of the following is not an asset account?
- AService Revenue
- BShare Capital
- CSalary Expense
- DNone of the above accounts is an asset.
12Which statement is false?
- ADividends are increased by credits.
- BAssets are increased by debits.
- CRevenues are increased by credits.
- DLiabilities are decreased by debits.
13The journal entry to record the receipt of land and a building and issuance of ordinary
shares- Adebits Share Capital and credits Land and Building.
- Bdebits Land and Building and credits Share Capital.
- Cdebits Land and credits Share Capital.
- Ddebits Land, Building, and Share Capital
14The journal entry to record the purchase of supplies on account
- Adebits Supplies Expense and credits Supplies.
- Bdebits Supplies and credits Accounts Payable.
- Ccredits Supplies and debits Cash
- Dcredits Supplies and debits Accounts Payable.
15If the credit to record the purchase of supplies on account is not posted,
- Aliabilities will be understated.
- Bexpenses will be overstated.
- Cassets will be understated.
- Dshareholders’ equity will be understated
16The journal entry to record a payment on account will
- Adebit Expenses and credit Cash
- Bdebit Cash and credit Expenses.
- Cdebit Accounts Payable and credit Retained Earnings.
- Ddebit Accounts Payable and credit Cash.
17If the credit to record the payment of an account payable is not posted,
- Acash will be overstated
- Bliabilities will be understated.
- Cexpenses will be understated.
- Dcash will be understated.
18Which statement is false?
- AA trial balance lists all the accounts with their current balances.
- BA trial balance can be taken at any time
- CA trial balance can verify the equality of debits and credits.
- DA trial balance is the same as a Balance Sheet.
19A business’s receipt of a $105,000 building, with a $65,000 mortgage payable and
issuance of $40,000 of ordinary shares, will- Aincrease shareholders’ equity by $40,000
- Bincrease assets by $65,000.
- Cdecrease assets by $65,000
- Dincrease shareholders’ equity by $105,000.
20. Gartex, a new company, completed these transactions.
1. Shareholders invested $45,000 cash and inventory worth $28,000.
2. Sales on account, $20,000.
What will Gartex’s total assets equal?- A$93,000
- B. $73,000
- C$65,000
- D$53,000
Información
- Descripción
- Test sobre FA chapter 2, creado por meli ssa el 04/02/2019.
- Autor
- meli ssa
- Idioma
- English
- Visitas
- 107
- Valoración
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