QUIZ 1| Analyzing Transactions | ACCOUNTING 101

1. 1. What makes a transaction a business transaction?

• A. When there are two parties involved, an exchange of values, and in terms of accounts receivable

• B. When there are two parties involved, an exchange of gifts, and in terms of cash.

• C. When there are two parties involved, an exchange of values, and in terms of cash.

• D. When there are parties involved, an exchange of values, and in terms of cash

2. 2. These are the common parties involved in a business transaction, EXCEPT for one.

• A. Suppliers

• B. Employees

• C. Family

• D. Customers

3. 3. Which of the following is considered the claim of creditors, whether internal or external, against the assets of the company?

• A. Liabilities

• B. Assets

• C. Equity

• D. None

4. 4. Which element is the owner's claim in an enterprise and the excess of assets over its liabilities?

• A. Assets

• B. Equity

• C. Liabilities

• D. None

5. 5. This occurs when funds are removed from an account for personal use.

• A. Accounts Payable

• B. Notes Receivable

• C. Furniture and Fixture

• D. Drawings/Withdrawal

6. 6. Is purchasing supplies in cash a business transaction?

• A. Yes, because there are two parties involved, an exchange of gifts, and in terms of cash.

• B. Yes, because there are two parties involved, an exchange of values, and in terms of cash.

• C. No, because there are two parties involved, an exchange of values, and in terms of cash.

• D. No, because there are two parties involved, an exchange of gifts, and in terms of cash.

7. 7. Which element refers to the properties and resources owned by the company?

• A. Assets

• B. Liabilities

• C. Equity

• D. None

8. 8. Prepaid Expenses is under what accounting element?

• A. Liabilities

• B. Assets

• C. Expenses

• D. Equity

9. 9. What account titles are being affected with the transaction: Purchased a printer for the business on account.

• A. Assets and Assets

• B. Liabilities and Equity

• C. Assets and Liabilities

• D. Assets and Assets

10. 10. What account titles are being affected with the transaction: Withdrew cash to buy a vacation ticket.

• A. Assets and Liabilities

• B. Assets and Equity

• C. Equity and Liabilities

• D. None