Principles of Financial Accounting Exam 1-
David Deeds Questions And Answers
If a company receives $12,000 from the stockholders to establish a corporation, the effect on the
accounting equation would be: Assets increase $12,000 and equity increases $12,000.
Net Income: Is the excess of revenues over expenses
If equity is $300,000 and liabilities are $192,000, then assets equal: $492,000.
If the liabilities of a business increased $75,000 during a period of time and the stockholders'
equity in the business decreased $30,000 during the same period, the assets of the business must
have: Increased $45,000.
Accounts payable appear on which of the following statements? Balance Sheet.
The following transactions occurred during July:
1. Received $900 cash for services provided to a customer during July.
2. Received $2,200 cash investment from Bob Johnson, the stockholder of the business.
, Principles of Financial Accounting Exam 1-
David Deeds Questions And Answers
3. Received $750 from a customer in partial payment of his account receivable which arose from
sales in June.
4. Provided services to a customer on credit, $375.
5. Borrowed $6,000 from the bank by signing a promissory note.
6. Received $1,250 cash from a customer for services to be provided next year.
What was the amount revenue for July? $1,275.
A report that lists a business's accounts and their balances, in which the total debit balances
should equal the total credit balances, is called a(n): Trial balance.
At the beginning of January of the current year, Little Mikey's Catering ledger reflected a normal
balance of $52,000 for accounts receivable. During January, the company collected $14,800 from
customers on accounts and provided additional services to customers on account totaling
$12,500. Additionally, during January on customer paid Mikey $5,000 for services to be
provided in the future. At the end of January, the balance in the accounts receivable account
should be: $49,700
David Deeds Questions And Answers
If a company receives $12,000 from the stockholders to establish a corporation, the effect on the
accounting equation would be: Assets increase $12,000 and equity increases $12,000.
Net Income: Is the excess of revenues over expenses
If equity is $300,000 and liabilities are $192,000, then assets equal: $492,000.
If the liabilities of a business increased $75,000 during a period of time and the stockholders'
equity in the business decreased $30,000 during the same period, the assets of the business must
have: Increased $45,000.
Accounts payable appear on which of the following statements? Balance Sheet.
The following transactions occurred during July:
1. Received $900 cash for services provided to a customer during July.
2. Received $2,200 cash investment from Bob Johnson, the stockholder of the business.
, Principles of Financial Accounting Exam 1-
David Deeds Questions And Answers
3. Received $750 from a customer in partial payment of his account receivable which arose from
sales in June.
4. Provided services to a customer on credit, $375.
5. Borrowed $6,000 from the bank by signing a promissory note.
6. Received $1,250 cash from a customer for services to be provided next year.
What was the amount revenue for July? $1,275.
A report that lists a business's accounts and their balances, in which the total debit balances
should equal the total credit balances, is called a(n): Trial balance.
At the beginning of January of the current year, Little Mikey's Catering ledger reflected a normal
balance of $52,000 for accounts receivable. During January, the company collected $14,800 from
customers on accounts and provided additional services to customers on account totaling
$12,500. Additionally, during January on customer paid Mikey $5,000 for services to be
provided in the future. At the end of January, the balance in the accounts receivable account
should be: $49,700
