Acct 2101 TEST 1 practice questions
well answered 2025/2026
A business started the current period with liabilities of $71,000 and Equity of $37,000. During
the period the following business transactions took place.
1. Purchased equipment for $43,000; paying $17,000 cash and issuing a note payable for the
balance.
2. Received $2,700 of the amount owed by a customer for services provided on account.
3. Paid $5,700 of the amount owed for supplies purchased on account.
4. Provided services of $3,500 on account.
5. Paid $1,900 towards rent for the current period.
Determine the Assets of the business at the end of the period. - CORRECT ANSWER
✔✔$129,900
A company prepares four basic financial statements:
1.Balance Sheet
2. Statement of Cash Flows
3. Statement of Retained Earnings
4. Income Statement.
These are prepared in the following order - CORRECT ANSWER ✔✔4,3,1,2
Since the accounting equation must remain in balance after each transaction, a transaction that
causes an increase in an asset, may also cause - CORRECT ANSWER ✔✔an increase in a liability
An example of resources owned by a company is - CORRECT ANSWER ✔✔accounts receivable
well answered 2025/2026
A business started the current period with liabilities of $71,000 and Equity of $37,000. During
the period the following business transactions took place.
1. Purchased equipment for $43,000; paying $17,000 cash and issuing a note payable for the
balance.
2. Received $2,700 of the amount owed by a customer for services provided on account.
3. Paid $5,700 of the amount owed for supplies purchased on account.
4. Provided services of $3,500 on account.
5. Paid $1,900 towards rent for the current period.
Determine the Assets of the business at the end of the period. - CORRECT ANSWER
✔✔$129,900
A company prepares four basic financial statements:
1.Balance Sheet
2. Statement of Cash Flows
3. Statement of Retained Earnings
4. Income Statement.
These are prepared in the following order - CORRECT ANSWER ✔✔4,3,1,2
Since the accounting equation must remain in balance after each transaction, a transaction that
causes an increase in an asset, may also cause - CORRECT ANSWER ✔✔an increase in a liability
An example of resources owned by a company is - CORRECT ANSWER ✔✔accounts receivable
