ACC 201 Exam- 335 Questions 100% Correctly
Answered
If total assets equal $345,000 and total stockholders' equity equal $120,000, then total
liabilities must equal - Answer $225,000
Stockholders' equity is increased by ____(1)____ and decreased by ____(2)____ -
Answer (1) revenues ... (2) expenses.
The collection of a $1,000 Accounts Receivable - Answer increases an asset $1,000 ...
and decreases an asset $1,000.
A balance sheet shows - Answer assets, liabilities, and stockholders' equity.
An income statement - Answer presents the revenues and expenses for a specific period
of time.
All of the financial statements are for a period of time (ex: June 1 to June 30) except the
- Answer balance sheet.
Auditing is - Answer the examination of financial statements by an independent CPA in
order to express an opinion on their fairness.
Identify ALL of the following accounts that would be reported ONLY on the Income
Statement and NOT on the Balance Sheet (multiple selection - choose ALL of the
accounts applicable) - Answer Rent Expense
Sales Revenue
Interest Revenue
,Identify ALL of the following accounts that would be reported ONLY on the Balance
Sheet and NOT on the Income Statement (multiple selection - choose ALL of the
accounts applicable). - Answer Dividends (Withdrawals)
Supplies
Accounts Receivable
Select ALL of the accounts that should be classified as "assets" (multiple selection -
choose ALL of the accounts applicable). - Answer Accounts receivable
Machinery
Select ALL of the accounts that should be classified as "liabilities" (multiple selection -
choose ALL of the accounts applicable). - Answer mortgage payable
accounts payable
Basic Accounting Equation - Answer Assets = Liabilities + Stockholders' Equity
stockholders equity equation - Answer total assets - total liabilities
another word for liabilities - Answer creditors claims
stockholders equity is the same as - Answer residual equity
common stock - Answer total amount paid in by stockholders for the shares they
purchase
Investment by Stockholders - Answer increase of assets, increase of stockholders equity
,purchase of equipment for cash - Answer increases assets
decreases assets
service performed for cash - Answer increases assets
increases SHE
purchase of advertising on credit - Answer increases liability
decreases SHE
service performed for cash and credit - Answer increases assets
increases SHE
payment of expenses - Answer decreases assets
decreases SHE
payment of accts payable - Answer decrease assets
decrease liability
receipt of cash on account - Answer increases assets
decreases assets
dividends - Answer decrease in assets
decrease in SHE
, income statement - Answer presents revenues and expenses and resulting net income
or net loss for a specific period of time
retained earnings statement - Answer summarized the changes in retained earnings for
a specific period of time
Ethics are the standards of conduct by which one's actions are judged as - Answer fair or
unfair, honest or dishonest, right or wrong, all of these
Financial statements are the major means of communicating accounting information to
interested parties - especially external users (those outside the company). - Answer
TRUE
Expressing an opinion as to the fairness of the information presented, as well as
adhering to GAAP in financial statements, is a service performed by CPAs. - Answer
TRUE
Historical (original) cost accounting and mark-to-market, or "fair market value" (FMV),
accounting are two methods used to record the price or value of an asset. (In this class
we use the historical (original) cost.)
Historical cost measures the original cost of an asset, whereas mark-to-market
measures the FMV of the asset.
True or False ... FMV may increase (or decrease) in future months or years while
historical cost will not change. - Answer TRUE
The primary purpose of the statement of cash flows is to provide information about the
cash receipts and cash payments of a company during a period.
Correct! - Answer TRUE
Answered
If total assets equal $345,000 and total stockholders' equity equal $120,000, then total
liabilities must equal - Answer $225,000
Stockholders' equity is increased by ____(1)____ and decreased by ____(2)____ -
Answer (1) revenues ... (2) expenses.
The collection of a $1,000 Accounts Receivable - Answer increases an asset $1,000 ...
and decreases an asset $1,000.
A balance sheet shows - Answer assets, liabilities, and stockholders' equity.
An income statement - Answer presents the revenues and expenses for a specific period
of time.
All of the financial statements are for a period of time (ex: June 1 to June 30) except the
- Answer balance sheet.
Auditing is - Answer the examination of financial statements by an independent CPA in
order to express an opinion on their fairness.
Identify ALL of the following accounts that would be reported ONLY on the Income
Statement and NOT on the Balance Sheet (multiple selection - choose ALL of the
accounts applicable) - Answer Rent Expense
Sales Revenue
Interest Revenue
,Identify ALL of the following accounts that would be reported ONLY on the Balance
Sheet and NOT on the Income Statement (multiple selection - choose ALL of the
accounts applicable). - Answer Dividends (Withdrawals)
Supplies
Accounts Receivable
Select ALL of the accounts that should be classified as "assets" (multiple selection -
choose ALL of the accounts applicable). - Answer Accounts receivable
Machinery
Select ALL of the accounts that should be classified as "liabilities" (multiple selection -
choose ALL of the accounts applicable). - Answer mortgage payable
accounts payable
Basic Accounting Equation - Answer Assets = Liabilities + Stockholders' Equity
stockholders equity equation - Answer total assets - total liabilities
another word for liabilities - Answer creditors claims
stockholders equity is the same as - Answer residual equity
common stock - Answer total amount paid in by stockholders for the shares they
purchase
Investment by Stockholders - Answer increase of assets, increase of stockholders equity
,purchase of equipment for cash - Answer increases assets
decreases assets
service performed for cash - Answer increases assets
increases SHE
purchase of advertising on credit - Answer increases liability
decreases SHE
service performed for cash and credit - Answer increases assets
increases SHE
payment of expenses - Answer decreases assets
decreases SHE
payment of accts payable - Answer decrease assets
decrease liability
receipt of cash on account - Answer increases assets
decreases assets
dividends - Answer decrease in assets
decrease in SHE
, income statement - Answer presents revenues and expenses and resulting net income
or net loss for a specific period of time
retained earnings statement - Answer summarized the changes in retained earnings for
a specific period of time
Ethics are the standards of conduct by which one's actions are judged as - Answer fair or
unfair, honest or dishonest, right or wrong, all of these
Financial statements are the major means of communicating accounting information to
interested parties - especially external users (those outside the company). - Answer
TRUE
Expressing an opinion as to the fairness of the information presented, as well as
adhering to GAAP in financial statements, is a service performed by CPAs. - Answer
TRUE
Historical (original) cost accounting and mark-to-market, or "fair market value" (FMV),
accounting are two methods used to record the price or value of an asset. (In this class
we use the historical (original) cost.)
Historical cost measures the original cost of an asset, whereas mark-to-market
measures the FMV of the asset.
True or False ... FMV may increase (or decrease) in future months or years while
historical cost will not change. - Answer TRUE
The primary purpose of the statement of cash flows is to provide information about the
cash receipts and cash payments of a company during a period.
Correct! - Answer TRUE
