Which one of the following users of accounting information is considered to be an external user of accounting information rather than an internal user of accounting information?

• A.Internal auditors
• B.Officers and directors
• C.Budget officers
• C.Budget officers

When cash is received from a customer in payment of an account receivable, how are the elements of the accounting equation affected?

• A.Increase assets (cash) and decrease assets (accounts receivable)
• B.Decrease assets (cash) and increase assets (accounts receivable)
• C.Increase assets and increase liabilities
• D.Increase assets and increase equity

Which of the following financial statements refers to a specific date (point in time)?

• A.Statement of cash flows
• B.Retained Earnings Statement
• C.Statement of financial position
• D.Income statement

Collection of a $500 Accounts Receivable

• A.decreases a liability $500; increases owner's equity $500
• B.increases an asset $500; decreases an asset $500
• C.increases an asset $500; decreases a liability $500
• D.decreases an asset $500; decreases a liability $500

The primary accounting standard-setting body in the United States is the

• A.Financial Accounting Standards Board
• B.Securities and Exchange Commission
• C.Internal Revenue Service
• D.International Accounting Standards Board

Purchasing equipment on account (payment to be made in the future) will have what effect on the elements of the accounting equation?

• A.Increase in equipment (assets) and a decrease in equity
• B.Increase in equipment (assets) and a decrease in liabilities
• C.Increase in equipment (assets) and an increase in liabilities
• D.Increase in equipment (assets) and an increase in equity

If during the current accounting period, the company's assets increased by $24,000 and equity increased by $5,000, then how did liabilities change?

• A.Increased by $19,000
• B.Increased by $29,000
• C.Decreased by $19,000
• D.Decreased by $5,000

Total assets and total liabilities of a company are reported on which of the following?

• A.Retained Earnings Statement
• B.Income statement
• C.Statement of cash flows
• D.Statement of financial position

Revenues would not result from

• A.sale of merchandise
• B.performance of services
• C.rental of property
• D.initial investment of cash by owner

If total liabilities decreased by $15,000 and owner’s equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period?

• A.$10,000 decrease
• B.$15,000 decrease
• C.$20,000 increase
• D.$10,000 increase