Accounting 2010 Exam 1 Quiz Questions and Correct Answers

This type of accounting is mainly concerned with external reporting and reports are prepared using generally accepted accounting principles (GAAP). A)Tax accounting B)Financial accounting C)Managerial accounting D)Both financial accounting and managerial accounting B)Financial accounting Which of the following accounts are assets? A)Cash, Land, and Accounts Receivable B)Cash, Accounts Payable, and Land C)Dividends to Shareholders, Equipment, and Salaries D)Equipment, Notes Payable, and Capital Stock A)Cash, Land, and Accounts Receivable JK Company purchased equipment for cash. What effect does this have on assets, liabilities, and equity? A)Increase liabilities and increase assets B)Decrease assets and decrease owner's equity C)No change to assets, liabilities, and owner's equity D)Decrease assets and increase owner's equity C)No change to assets, liabilities, and owner's equity If Aggie Corporation has $70,000 in assets and $20,000 in liabilities, what is the balance of owner's equity? A)$20,000 B)$50,000 C)$90,000 D)$70,000 B)$50,000 Retained earnings will change over time because of several factors. Which of the following factors would explain a decrease in retained earnings? A)Net income B)Investments by stockholders C)Net loss D)Dividends C)Net loss Which of the following would be accounted for as revenue? A)Receipt of loan proceeds B)Cash received for services performed C)Investments by stockholders D)Receiving payment on customer's account B)Cash received for services performed