ACCT Exam 1 Questions & Answers 2023/2024

ACCT Exam 1 Questions & Answers 2023/2024 Which of the following is not an asset account? - ANSWER-Common Stock Which of the following statements describe transactions that would be recorded in the accounting system? - ANSWER-An exchange of an asset for a promise to pay Total assets on a balance sheet prepared on any date must agree with which of the following? - ANSWER-The sum of total liabilities and common stock and retained earnings The duality of effects can best be described as the following - ANSWER-When a transaction is recorded in the accounting system, at least two effects on the basic accounting equation will result The T-account is used to summarize which of the following - ANSWER-Increases and decreases to a single account in the accounting system, Debits and credits to a single account in the accounting system, Changes in specific account balances over a time period. Which of the following describes how assets are listed on the balance sheet? - ANSWER-In the order they will be used up or turned into cash. A company was recently formed with $50,000 cash contributed to the company by stockholders for common stock. The company then borrowed $20,000 from a bank and bought $10,000 of supplies on account. The company also purchased $50,000 of equipment by paying $20,000 in cash and issuing a note for the remainder. What is the amount of total assets to be reported on the balance sheet? - ANSWER-$110,000 If a publicly traded company is trying to maximize its perceived value to decision makers external to the corporation, the company is most likely to report too small a value for which of the following on its balance sheet? - ANSWER-Liabilities