ACC250 Quiz 1 Review

Managerial accounting provides information to ________.

• internal decision makers

• outside investors and lenders

• creditors

• taxing authorities

Bill's Cleaning Services performs services for its customers during March. Payments for the March services are received in June. How does the transaction for the collection of cash from customers affect the accounting equation of Bill's Cleaning Services?

• liabilities increase and assets increase

• total assets remain the same

• assets increase and revenues increase

• assets increase and equity decreases

Universal Company paid $10,000 on accounts payable. How does this transaction affect the accounting equation of Universal?

• assets decrease by $10,000 and equity increases by $10,000

• assets decrease by $10,000 and liabilities decrease by $10,000

• assets increase by $10,000 and equity decreases by $10,000

• assets increase by $10,000 and liabilities increase by $10,000

Jones Supply Services paid $350 cash, the amount owed from the previous month, to a materials supplier. Which of the following accounts will decrease?

• Accounts Payable

• Accounts Receivable

• Jones, Capital

• Office Supplies

Deviney Equipment Rental Company received $1,000 cash from a customer; the amount was owed to the business from the previous month. What is the effect of this transaction on the accounting equation?

• Accounts Receivable increases and Service Revenue increases

• Cash increases and Accounts Payable decreases

• Cash increases and Service Revenue increases

• Cash increases and Account Receivable decreases

The equity of Alliance Company is $100,000 and the total liabilities are $10,000. Total assets =

• $200,000

• $20,000

• $90,000

• $110,000

Susan Company has assets and equity that amount to $260,000 and $70,000, respectively. What do liabilities equal?

• $70,000

• $190,000

• $260,000

• $330.000

The field of accounting that focuses on providing information for external decision makers is ____________.

• managerial accounting

• financial accounting

• cost accounting

• nonmonetary accounting

Which of the following users would rely on managerial accounting information for decision-making purposes?

• potential investors

• creditors

• customers

• company managers

Which of the following organizations is responsible for the creation and governance of accounting standards in the United States?

• Financial Accounting Standards Board

• Institute of Management Accountants

• American Institute of Certified Public Accountants

• Securities and Exchange Commission