20 acc101 final

QN=46 If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

• a. Assets would have increased $55,000.

• b. Assets would have decreased $55,000

• c. Assets would have increased $19,000

• d. Assets would have decreased $19,000.

• e. None of these.

QN=151 Which statement is true?

• a. A contra-asset account such as Accumulated Depreciation will likely have debit balance

• b. A contra-asset account such as Accumulated Depreciation will likely have credit balance

• c. A contra-asset account such as Depreciation will likely have credit balance

• d. A contra-asset account such as Depreciation will likely have debit balance

• e. None of these

QN=301 The value of an asset as it appears on a balance sheet, equal to cost minus accumulated depreciation is definition of:

• a. Depreciation cost

• b. Asset at cost

• c. Accumulated depreciation

• d. Depreciation expense

• e. Book value

QN=35 Net Income:

• a. Decreases equity

• b. Represents the amount of assets owners put into a business.

• c. Equals assets minus liabilities

• d. Is the excess of revenues over expenses

• e. Represents owners' claims against assets.

QN=215 Unearned Revenues is what type of account?

• a. Asset

• b. Liability

• c. Owner equity

• d. None of these

• e. Net Asset

QN=49 Distributions by a business to its owners are called:

• a. Withdrawals

• b. Expenses.

• c. Assets

• d. Retained earnings

• e. Net Income.

QN=165 Provide descriptions for this transaction:Debit expense $2,000 and Credit supplies $2,000

• a. Purchased supplies by cash

• b. Used supplies

• c. Counted supplies

• d. Purchased supplies on credit

• e. None of these

QN=115 On June 1, 2010, The company paid $1,000 cash for the loan owing the bank before. Recording this transaction.

• a. Debit cash and credit loan

• b. Credit cash and debit loan

• c. Debit account payable and credit loan

• d. Credit account payable and debit loan

• e. None of these

QN=35 Net Income:

• a. Decreases equity

• b. Represents the amount of assets owners put into a business.

• c. Equals assets minus liabilities.

• d. Is the excess of revenues over expenses

• e. Represents owners' claims against assets.

QN=46 If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?a. Assets would have increased $55,000.b. Assets would have decreased $55,000.c. Assets would have increased $19,000.d. Assets would have decreased $19,000.e. None of these.

• a. Assets would have increased $55,000

• b. Assets would have decreased $55,000.

• c. Assets would have increased $19,000

• d. Assets would have decreased $19,000.

• e. None of these.