7/18/22, 9:28 PM Graded Exam #1

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ACC101_MH_V2 | Topic 4: Journalizing and Posting Transactions

Started on Friday, July 8, 2022, 10:41 AM

State Finished
Completed on Friday, July 8, 2022, 11:28 AM
Time taken 47 mins 2 secs
Grade 120.00 out of 125.00 (96%)
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Question 1
The primary objective of financial accounting is to:
Correct

5.00 points out Select one:

of 5.00
a. Serve the decision-making needs of internal users.
b. Provide accounting information that serves external users.
c. Monitor consumer needs, tastes, and price concerns.
d. Provide information on both the costs and benefits of looking after products
and services.
e. Know what, when, and how much product to produce.

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Question 2
The time period assumption:
Correct

5.00 points out Select one:

of 5.00
a. Means that accounting information reflects a presumption that the business
will continue operating instead of being closed or sold.
b. Means that we can express transactions and events in monetary, or money,
units.
c. Presumes that the life of a company can be divided into time periods, such
as months and years, and that useful reports can be prepared for those
periods.
d.  Means that a business is accounted for separately from other business
entities, including its owner.
e. Prescribes that a company record the expenses it incurred to generate the
revenue reported.

Question 3
Correct
Clawback provisions and whistleblower provisions are components of which
legislation?
5.00 points out
of 5.00
Select one:
a. Sarbanes-Oxley Act.
b. Dodd-Frank Act.
c. Glass-Steagall Act.
d. Securities Exchange Act.
e. Gramm-Leach-Bliley Act.

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Question 4
A limited liability company (LLC):
Correct

5.00 points out

Select one:
of 5.00
a. Has owners called members.
b. Is subject to double taxation.
c. Includes a general owner with unlimited liability.
d. Is the same as a corporation.
e.
Must have more than one owner.

Question 5
The measurement principle, also called the cost principle:
Correct

5.00 points out Select one:

of 5.00
a. Prescribes that accounting information is based on actual cost.
b. Provides guidance on when a company must recognize revenue.
c. Prescribes that a company report the details behind financial statements
that would impact users' decisions.
d. Prescribes that a company record the expenses it incurred to generate the
revenue reported.
e. Means that accounting information reflects a presumption that the business
will continue operating instead of being closed or sold.

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Question 6
If a company uses $1,300 of its cash to purchase supplies, the effect on the
Correct
accounting equation would be:
5.00 points out
of 5.00
Select one:
a. Assets increase $1,300 and liabilities decrease $1,300.
b. One asset increases $1,300 and another asset decreases $1,300, causing no
effect.
c. Assets decrease $1,300 and equity decreases $1,300.
d. Assets decrease $1,300 and equity increases $1,300.
e. Assets increase $1,300 and liabilities increase $1,300.

Question 7

Correct
If assets are $300,000 and liabilities are $192,000, then equity equals:

5.00 points out

Select one:
of 5.00
a. $108,000.
b. $192,000.
c. $300,000.
d. $492,000.
e. $792,000.

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Question 8
Which of the following accounts is not included in the asset section of the balance
Correct
sheet?
5.00 points out
of 5.00
Select one:
a. Buildings.
b. Wages expense.
c. Supplies.
d. Land.
e. Furniture.

Question 9
Which of the following accounts is not included in the calculation of a company's
Correct
ending owner's equity?
5.00 points out
of 5.00
Select one:
a. Revenues.
b. Expenses.
c. Withdrawals.
d. Owner investments.
e. Cash.

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Question 10
Which of the following combinations results in a net loss reported on the income
Correct
statement?
5.00 points out
of 5.00
Select one:
a. Total revenues of $80,000 and total expenses of $74,000.
b. Total revenues of $70,000 and total expenses of $74,000.
c. Total revenues of $60,000 and total expenses of $52,000.
d. Total revenues of $20,000 and total expenses of $16,000.
e. Total revenues of $40,000 and total expenses of $31,000.

Question 11
A balance sheet lists:
Correct

5.00 points out Select one:

of 5.00
a. The types and amounts of the revenues and expenses of a business.
b. Only the information about what happened to equity during a time period.
c. The types and amounts of assets, liabilities, and equity of a business as of a
specific date.
d. The inflows and outflows of cash during the period.
e. The assets and liabilities of a company but not the owner's equity.

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Question 12
A resource that the owner takes from the company is called a(n):
Correct

5.00 points out

Select one:
of 5.00
a. Liability.
b. Withdrawal.
c. Expense.
d. Contribution.
e. Investment.

Question 13
Correct
The financial statement that shows the beginning balance of owner's equity; the
changes in equity that resulted from new investments by the owner; net income (or
5.00 points out net loss); withdrawals; and the ending balance, is the:
of 5.00

Select one:
a. Statement of financial position.
b. Statement of cash flows.
c. Balance sheet.
d. Income statement.
e. Statement of owner's equity.

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Question 14
A company borrows $125,000 from the Northern Bank and receives the loan
Correct
proceeds in cash. This represents a(n):
5.00 points out
of 5.00
Select one:
a. Revenue activity.
b. Operating activity.
c. Expense activity.
d. Investing activity.
e. Financing activity.

Question 15
Charlie’s Chocolates’ owner made investments of $50,000 and withdrawals of
Correct
$20,000. The company has revenues of $83,000 and expenses of $64,000.
5.00 points out Calculate its net income. 
of 5.00

Select one:
a. $30,000.
b. $83,000.
c. $64,000.
d. $19,000.
e. $49,000.

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Question 16
Cash investments by owners are listed on which of the following statements?
Correct

5.00 points out

Select one:
of 5.00
a. Statement of owner’s equity and income statement.
b. Income statement only.
c. Statement of owner’s equity only.
d. Statement of cash flows only.
e. Statement of owner's equity and statement of cash flows.

Question 17

Correct
All of the following are classified as liabilities except:

5.00 points out

Select one:
of 5.00
a. Accounts Receivable.
b. Notes Payable.
c. Wages Payable.
d. Accounts Payable.
e. Taxes Payable.

Question 18
A company's balance sheet shows: cash $24,000, accounts receivable $30,000,
Correct
equipment $50,000, and equity $72,000. What is the amount of liabilities?
5.00 points out
of 5.00
Select one:
a. $104,000.
b. $76,000.
c. $32,000.
d. $68,000.
e. $176,000.

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Question 19
U. S. treasury bonds are:
Correct

5.00 points out

Select one:
of 5.00
a. High-risk and high-return investments.
b. Low-risk and low-return investments.
c. High-risk and low-return investments.
d. Low-risk and high-return investments.
e. High risk and no-return investments.

Question 20
Correct
Rico's Taqueria had cash inflows from operating activities of $27,000; cash
outflows from investing activities of $22,000, and cash outflows from financing
5.00 points out activities of $12,000. Calculate the net increase or decrease in cash.
of 5.00

Select one:
a. $61,000 increase.
b. $37,000 increase.
c. $7,000 decrease.
d. $7,000 increase.
e. $34,000 decrease.

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Question 21
If the liabilities of a business increased $75,000 during a period of time and the
Incorrect
owner's equity in the business decreased $30,000 during the same period, the
0.00 points out assets of the business must have:
of 5.00

Select one:
a. Decreased $105,000.
b. Decreased $45,000.
c. Increased $30,000.
d. Increased $45,000.
e. Increased $105,000.

Question 22
Correct
The accounting equation for Ying Company shows a decrease in its assets and a
decrease in its equity. Which of the following transactions could have caused that
5.00 points out effect?
of 5.00

Select one:
a. Cash was received from providing services to a customer.
b. The company paid an amount due on credit.
c. Equipment was purchased for cash.
d. A utility bill was received for the current month, to be paid in the following
month.
e. Advertising expense for the month was paid in cash.

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Question 23
An asset created by prepayment of an insurance premium is:
Correct

5.00 points out

Select one:
of 5.00
a. Recorded as a debit to Unearned Revenue.
b. Recorded as a debit to Prepaid Insurance.
c. Recorded as a credit to Unearned Revenue.
d. Recorded as a credit to Prepaid Insurance.
e. Not recorded in the accounting records until the insurance period expires.

Question 24
Correct
Victor Cruz contributed $70,000 in cash and land worth $130,000 to open a new
business, VC Consulting. Which of the following general journal entries will VC
5.00 points out Consulting make to record this transaction?
of 5.00

Select one:
a. Debit Accounts Payable $200,000; Credit Cruz, Capital, $200,000.
b. Credit Cash and Land, $200,000; Credit Cruz, Capital, $200,000.
c. Debit Cash $70,000; Debit Land $130,000; Credit Cruz, Capital, $200,000.
d. Debit Cruz, Capital, $200,000; Credit Cash $70,000, Credit Land, $130,000.
e. Debit Cruz, Capital, $200,000; Credit Assets, $200,000.

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Question 25
Which of the following is NOT an equity account:
Correct

5.00 points out

Select one:
of 5.00
a. Unearned Revenue
b. Owner, Capital
c. Services Revenue
d. Wages Expense
e. Owner, Withdrawals

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