Accounting 201 Final WileyPlus - Questions With
Tailored Solutions
Which of the following would not be considered an internal user of accounting
data for a company?
a. Controller of the company
b. Internal Revenue Service
c. Production manager
d. President of the company Correct Answer - b. Internal Revenue Service
Stockholders' equity is equal to
a. assets minus liabilities.
b. assets plus liabilities.
c. assets minus revenues.
d. revenues minus expenses. Correct Answer - a. assets minus liabilities.
Milo has the following year-end account balances: Accounts Receivable,
$5,000; Supplies, $12,000; Equipment, $18,000; Accounts Payable, $17,000;
Stockholders' Equity, $43,000. Given the account balances listed, the balance
in the Cash account should be
a. $25,000.
b. $95,000.
c. $43,000.
d. none of these answer choices are correct. Correct Answer - a. $25,000.
During 2022, Gibson Company's assets decreased $50,000 and its liabilities
decreased $90,000. Its stockholders' equity therefore
a. decreased $40,000.
b. decreased $140,000.
c. increased $40,000.
d. increased $140,000. Correct Answer - c. increased $40,000.
Which of the following events is not recorded in the accounting records?
a. A cash investment is made into the business.
b. The declaration of cash dividends.
c. Equipment is purchased on account.
d. An employee is terminated. Correct Answer - d. An employee is
terminated.
,Payment of accounts payable affects the components of the accounting
equation in the following way:
a. increases assets and decreases liabilities.
b. decreases assets and increases stockholders' equity.
c. decreases stockholders' equity and decreases liabilities.
d. decreases assets and decreases liabilities. Correct Answer - d. decreases
assets and decreases liabilities.
Simon Company had the following summarized operations for the month of
May: Revenues earned: for cash, $32,000; and on account, $18,000; and
Expenses incurred: for cash, $5,000; and on account, $10,000. In addition, the
company purchased Equipment for $8,000 on account and Supplies for $5,000
for cash. The net income for the month of May is
a. $14,000.
b. $35,000.
c. $27,000.
d. $45,000. Correct Answer - b. $35,000.
Revenues and expenses are reported on the
a. statement of stockholders' equity.
b. balance sheet.
c. statement of cash flows.
d. income statement. Correct Answer - d. income statement.
The financial statement that reports assets, liabilities, and stockholders'
equity is the
a. statement of stockholders' equity.
b. income statement.
c. balance sheet.
d. statement of cash flow. Correct Answer - c. balance sheet.
Performing services on account will have the following effects on the
components of the basic accounting equation:
a. increase assets and decrease stockholders' equity.
b. increase assets and increase liabilities.
c. increase assets and increase stockholders' equity.
d. increase liabilities and increase stockholders' equity. Correct Answer - c.
increase assets and increase stockholders' equity.
, A credit to a liability account
a. indicates an increase in the account.
b. must be accompanied by a credit to an asset account.
c. indicates a decrease in the account.
d. is an error. Correct Answer - a. indicates an increase in the account.
Which of the following is not part of the recording process?
a. preparing a trial balance.
b. posting transactions.
c. analyzing transactions.
d. entering transactions in a journal. Correct Answer - a. preparing a trial
balance.
An account will show a debit balance if the
a. total of the debit amounts exceeds the total of the credit amounts.
b. number of debits exceeds the number of credits.
c. first transaction posted was a debit.
d. last transaction posted was a debit. Correct Answer - a. total of the debit
amounts exceeds the total of the credit amounts.
Which of the following statements is false?
a. Credits to revenue accounts should exceed debits.
b. Revenues increase stockholders' equity.
c. Revenue accounts have normal credit balances.
d. Revenue accounts are increased by debits. Correct Answer - d. Revenue
accounts are increased by debits.
The expanded accounting equation is
a. Assets = Liabilities - Common Stock - Dividends - Revenues - Expenses.
b. Assets + Liabilities = Common Stock + Dividends + Revenues + Expenses.
c. Assets = Liabilities + Common Stock + Dividends + Revenues - Expenses.
d. Assets = Liabilities + Common Stock - Dividends + Revenues - Expenses.
Correct Answer - d. Assets = Liabilities + Common Stock - Dividends +
Revenues - Expenses.
Before posting a payment of $5,000, the Accounts Payable of Senator
Company has a normal balance of $16,000. The balance after posting this
transaction was
Tailored Solutions
Which of the following would not be considered an internal user of accounting
data for a company?
a. Controller of the company
b. Internal Revenue Service
c. Production manager
d. President of the company Correct Answer - b. Internal Revenue Service
Stockholders' equity is equal to
a. assets minus liabilities.
b. assets plus liabilities.
c. assets minus revenues.
d. revenues minus expenses. Correct Answer - a. assets minus liabilities.
Milo has the following year-end account balances: Accounts Receivable,
$5,000; Supplies, $12,000; Equipment, $18,000; Accounts Payable, $17,000;
Stockholders' Equity, $43,000. Given the account balances listed, the balance
in the Cash account should be
a. $25,000.
b. $95,000.
c. $43,000.
d. none of these answer choices are correct. Correct Answer - a. $25,000.
During 2022, Gibson Company's assets decreased $50,000 and its liabilities
decreased $90,000. Its stockholders' equity therefore
a. decreased $40,000.
b. decreased $140,000.
c. increased $40,000.
d. increased $140,000. Correct Answer - c. increased $40,000.
Which of the following events is not recorded in the accounting records?
a. A cash investment is made into the business.
b. The declaration of cash dividends.
c. Equipment is purchased on account.
d. An employee is terminated. Correct Answer - d. An employee is
terminated.
,Payment of accounts payable affects the components of the accounting
equation in the following way:
a. increases assets and decreases liabilities.
b. decreases assets and increases stockholders' equity.
c. decreases stockholders' equity and decreases liabilities.
d. decreases assets and decreases liabilities. Correct Answer - d. decreases
assets and decreases liabilities.
Simon Company had the following summarized operations for the month of
May: Revenues earned: for cash, $32,000; and on account, $18,000; and
Expenses incurred: for cash, $5,000; and on account, $10,000. In addition, the
company purchased Equipment for $8,000 on account and Supplies for $5,000
for cash. The net income for the month of May is
a. $14,000.
b. $35,000.
c. $27,000.
d. $45,000. Correct Answer - b. $35,000.
Revenues and expenses are reported on the
a. statement of stockholders' equity.
b. balance sheet.
c. statement of cash flows.
d. income statement. Correct Answer - d. income statement.
The financial statement that reports assets, liabilities, and stockholders'
equity is the
a. statement of stockholders' equity.
b. income statement.
c. balance sheet.
d. statement of cash flow. Correct Answer - c. balance sheet.
Performing services on account will have the following effects on the
components of the basic accounting equation:
a. increase assets and decrease stockholders' equity.
b. increase assets and increase liabilities.
c. increase assets and increase stockholders' equity.
d. increase liabilities and increase stockholders' equity. Correct Answer - c.
increase assets and increase stockholders' equity.
, A credit to a liability account
a. indicates an increase in the account.
b. must be accompanied by a credit to an asset account.
c. indicates a decrease in the account.
d. is an error. Correct Answer - a. indicates an increase in the account.
Which of the following is not part of the recording process?
a. preparing a trial balance.
b. posting transactions.
c. analyzing transactions.
d. entering transactions in a journal. Correct Answer - a. preparing a trial
balance.
An account will show a debit balance if the
a. total of the debit amounts exceeds the total of the credit amounts.
b. number of debits exceeds the number of credits.
c. first transaction posted was a debit.
d. last transaction posted was a debit. Correct Answer - a. total of the debit
amounts exceeds the total of the credit amounts.
Which of the following statements is false?
a. Credits to revenue accounts should exceed debits.
b. Revenues increase stockholders' equity.
c. Revenue accounts have normal credit balances.
d. Revenue accounts are increased by debits. Correct Answer - d. Revenue
accounts are increased by debits.
The expanded accounting equation is
a. Assets = Liabilities - Common Stock - Dividends - Revenues - Expenses.
b. Assets + Liabilities = Common Stock + Dividends + Revenues + Expenses.
c. Assets = Liabilities + Common Stock + Dividends + Revenues - Expenses.
d. Assets = Liabilities + Common Stock - Dividends + Revenues - Expenses.
Correct Answer - d. Assets = Liabilities + Common Stock - Dividends +
Revenues - Expenses.
Before posting a payment of $5,000, the Accounts Payable of Senator
Company has a normal balance of $16,000. The balance after posting this
transaction was
