Accounting Final WileyPlus Verified Exam Questions and Answers
Latest update 2026/2027
Question:
Shared control, tax advantages, increased skills and resources.
Answer:
partnership
Question:
Simple to set up and maintains control with owner.
Answer:
sole proprietorship
Question:
Easier to transfer ownership and raise funds, no personal liability.
Answer:
corporation
Question:
How does the following affect stockholders' equity and which account title? costs incurred for
advertising
Answer:
expense; advertising expense Presented below are a number of transactions. Determine whether each
transaction affects common stock, dividends, revenue, expense, or does not affect stockholders' equity.
Provide titles for the revenues and expenses. Select Not applicable for account title if neither a revenue
nor an expense.
Question:
cash received for services performed
Answer:
revenue; service revenue Presented below are a number of transactions. Determine whether each
transaction affects common stock, dividends, revenue, expense, or does not affect stockholders' equity.
Provide titles for the revenues and expenses. Select Not applicable for account title if neither a revenue
nor an expense.
,Question:
costs incurred for insurance
Answer:
expense; insurance expense Presented below are a number of transactions. Determine whether each
transaction affects common stock, dividends, revenue, expense, or does not affect stockholders' equity.
Provide titles for the revenues and expenses. Select Not applicable for account title if neither a revenue
nor an expense.
Question:
amounts paid to employees
Answer:
expense; salaries and wage expense Presented below are a number of transactions. Determine whether
each transaction affects common stock, dividends, revenue, expense, or does not affect stockholders'
equity. Provide titles for the revenues and expenses. Select Not applicable for account title if neither a
revenue nor an expense.
Question:
cash distributed to stockholders
Answer:
dividends; not applicable Presented below are a number of transactions. Determine whether each
transaction affects common stock, dividends, revenue, expense, or does not affect stockholders' equity.
Provide titles for the revenues and expenses. Select Not applicable for account title if neither a revenue
nor an expense.
Question:
cash received in exchange for allowing the use of a company's building
Answer:
revenue; rent revenue Presented below are a number of transactions. Determine whether each
transaction affects common stock, dividends, revenue, expense, or does not affect stockholders' equity.
Provide titles for the revenues and expenses. Select Not applicable for account title if neither a revenue
nor an expense.
Question:
costs incurred for utilities used
Answer:
expenses; utilities expense Presented below are a number of transactions. Determine whether each
transaction affects common stock, dividends, revenue, expense, or does not affect stockholders' equity.
Provide titles for the revenues and expenses. Select Not applicable for account title if neither a revenue
nor an expense.
, Question:
cash purchase of equipment
Answer:
doesn't effect stockholders equity; not applicable Presented below are a number of transactions.
Determine whether each transaction affects common stock, dividends, revenue, expense, or does not
affect stockholders' equity. Provide titles for the revenues and expenses. Select Not applicable for
account title if neither a revenue nor an expense.
Question:
cash received from investors
Answer:
common stock; not applicable In each case, identify whether the item would appear on the balance
sheet or income statement:
Question:
income tax expense
Answer:
income statement In each case, identify whether the item would appear on the balance sheet or income
statement.
Question:
inventory
Answer:
balance sheet In each case, identify whether the item would appear on the balance sheet or income
statement.
Question:
accounts payable
Answer:
balance sheet In each case, identify whether the item would appear on the balance sheet or income
statement.
Question:
retained earnings
Answer:
balance sheet In each case, identify whether the item would appear on the balance sheet or income
statement.
Latest update 2026/2027
Question:
Shared control, tax advantages, increased skills and resources.
Answer:
partnership
Question:
Simple to set up and maintains control with owner.
Answer:
sole proprietorship
Question:
Easier to transfer ownership and raise funds, no personal liability.
Answer:
corporation
Question:
How does the following affect stockholders' equity and which account title? costs incurred for
advertising
Answer:
expense; advertising expense Presented below are a number of transactions. Determine whether each
transaction affects common stock, dividends, revenue, expense, or does not affect stockholders' equity.
Provide titles for the revenues and expenses. Select Not applicable for account title if neither a revenue
nor an expense.
Question:
cash received for services performed
Answer:
revenue; service revenue Presented below are a number of transactions. Determine whether each
transaction affects common stock, dividends, revenue, expense, or does not affect stockholders' equity.
Provide titles for the revenues and expenses. Select Not applicable for account title if neither a revenue
nor an expense.
,Question:
costs incurred for insurance
Answer:
expense; insurance expense Presented below are a number of transactions. Determine whether each
transaction affects common stock, dividends, revenue, expense, or does not affect stockholders' equity.
Provide titles for the revenues and expenses. Select Not applicable for account title if neither a revenue
nor an expense.
Question:
amounts paid to employees
Answer:
expense; salaries and wage expense Presented below are a number of transactions. Determine whether
each transaction affects common stock, dividends, revenue, expense, or does not affect stockholders'
equity. Provide titles for the revenues and expenses. Select Not applicable for account title if neither a
revenue nor an expense.
Question:
cash distributed to stockholders
Answer:
dividends; not applicable Presented below are a number of transactions. Determine whether each
transaction affects common stock, dividends, revenue, expense, or does not affect stockholders' equity.
Provide titles for the revenues and expenses. Select Not applicable for account title if neither a revenue
nor an expense.
Question:
cash received in exchange for allowing the use of a company's building
Answer:
revenue; rent revenue Presented below are a number of transactions. Determine whether each
transaction affects common stock, dividends, revenue, expense, or does not affect stockholders' equity.
Provide titles for the revenues and expenses. Select Not applicable for account title if neither a revenue
nor an expense.
Question:
costs incurred for utilities used
Answer:
expenses; utilities expense Presented below are a number of transactions. Determine whether each
transaction affects common stock, dividends, revenue, expense, or does not affect stockholders' equity.
Provide titles for the revenues and expenses. Select Not applicable for account title if neither a revenue
nor an expense.
, Question:
cash purchase of equipment
Answer:
doesn't effect stockholders equity; not applicable Presented below are a number of transactions.
Determine whether each transaction affects common stock, dividends, revenue, expense, or does not
affect stockholders' equity. Provide titles for the revenues and expenses. Select Not applicable for
account title if neither a revenue nor an expense.
Question:
cash received from investors
Answer:
common stock; not applicable In each case, identify whether the item would appear on the balance
sheet or income statement:
Question:
income tax expense
Answer:
income statement In each case, identify whether the item would appear on the balance sheet or income
statement.
Question:
inventory
Answer:
balance sheet In each case, identify whether the item would appear on the balance sheet or income
statement.
Question:
accounts payable
Answer:
balance sheet In each case, identify whether the item would appear on the balance sheet or income
statement.
Question:
retained earnings
Answer:
balance sheet In each case, identify whether the item would appear on the balance sheet or income
statement.
