MGT Chapter 1 Exam Questions Correctly Answered.
Jackson company purchased office equipment costing $3000 and paid immediately. Record this transaction in the accounting equation - CORRECT ANSWER decrease cash, increase equipment
When recording transactions into the accounting equation, which statements are true? - CORRECT ANSWER 1. At least 2 accounts will be affected when recording a transaction
2. The accounting equation must always remain in balance
3. After recording the transaction, total assets will always equal total liabilities + equity
Bakery Company receives its utility bill of $800 and pays it immediately. Record transaction in accounting equation - CORRECT ANSWER Increase expenses, decrease cash
Supplies costing $500 were purchased on credit. Record transaction in accounting equation - CORRECT ANSWER increase supplies, increase accounts payable
When supplies are purchased on credit, it means - CORRECT ANSWER 1. Accounts payable will be increased
2. Business will pay for the supplies at a later time
3. A liability has been incurred
Jackson's catering provided $3000 worth of cookies and received immediate payment. Record transaction in accounting equation - CORRECT ANSWER increase cash, increase revenue
Bakery Company is making a partial payment of $70 cash for baking supplies it purchased in a previous month. Record this transaction in the accounting equation - CORRECT ANSWER decrease accounts payable, decrease cash ABS performs $200 of services for a customer but doesn't get paid right away. Record in accounting equation - CORRECT ANSWER increase accounts receivable, increase revenue
customer makes a partial payment of $100 on a service for which you have already billed him, you would record this transaction in the accounting equation by - CORRECT ANSWER increase cash, decrease
accounts receivable
When a business provides a service to a customer on credit it means - CORRECT ANSWER 1. An asset gas
been created or increased
2. The business will receive payment for its services at a later time
3. Accounts receivable will be increased
If H Hair salon decides to pay cash dividends to their shareholders, what would be decreased? - CORRECT ANSWER cash
Income statement - CORRECT ANSWER describes a business's revenues and expenses over a period of time
What events would appear on a balance sheet - CORRECT ANSWER Cash, accounts payable, retained earning, equipment, supplies
Why does a business need accounting? - CORRECT ANSWER Accounting records business transactions and communicates financial information
Identify the importance of accounting - CORRECT ANSWER Accounting inför helps users make business and financial decisions. It is a system that identifies, record, and communicates financial info.
Users of accounting info can be divided into two main groups - CORRECT ANSWER internal and external
Shareholder - CORRECT ANSWER An owner of a corporation
A creditor - CORRECT ANSWER Loans money or other resources to a business
Jackson company purchased office equipment costing $3000 and paid immediately. Record this transaction in the accounting equation - CORRECT ANSWER decrease cash, increase equipment
When recording transactions into the accounting equation, which statements are true? - CORRECT ANSWER 1. At least 2 accounts will be affected when recording a transaction
2. The accounting equation must always remain in balance
3. After recording the transaction, total assets will always equal total liabilities + equity
Bakery Company receives its utility bill of $800 and pays it immediately. Record transaction in accounting equation - CORRECT ANSWER Increase expenses, decrease cash
Supplies costing $500 were purchased on credit. Record transaction in accounting equation - CORRECT ANSWER increase supplies, increase accounts payable
When supplies are purchased on credit, it means - CORRECT ANSWER 1. Accounts payable will be increased
2. Business will pay for the supplies at a later time
3. A liability has been incurred
Jackson's catering provided $3000 worth of cookies and received immediate payment. Record transaction in accounting equation - CORRECT ANSWER increase cash, increase revenue
Bakery Company is making a partial payment of $70 cash for baking supplies it purchased in a previous month. Record this transaction in the accounting equation - CORRECT ANSWER decrease accounts payable, decrease cash ABS performs $200 of services for a customer but doesn't get paid right away. Record in accounting equation - CORRECT ANSWER increase accounts receivable, increase revenue
customer makes a partial payment of $100 on a service for which you have already billed him, you would record this transaction in the accounting equation by - CORRECT ANSWER increase cash, decrease
accounts receivable
When a business provides a service to a customer on credit it means - CORRECT ANSWER 1. An asset gas
been created or increased
2. The business will receive payment for its services at a later time
3. Accounts receivable will be increased
If H Hair salon decides to pay cash dividends to their shareholders, what would be decreased? - CORRECT ANSWER cash
Income statement - CORRECT ANSWER describes a business's revenues and expenses over a period of time
What events would appear on a balance sheet - CORRECT ANSWER Cash, accounts payable, retained earning, equipment, supplies
Why does a business need accounting? - CORRECT ANSWER Accounting records business transactions and communicates financial information
Identify the importance of accounting - CORRECT ANSWER Accounting inför helps users make business and financial decisions. It is a system that identifies, record, and communicates financial info.
Users of accounting info can be divided into two main groups - CORRECT ANSWER internal and external
Shareholder - CORRECT ANSWER An owner of a corporation
A creditor - CORRECT ANSWER Loans money or other resources to a business
