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Quiz KETE Chap 1

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Aiden is considering starting a proprietorship. What does it mean for a business to be a proprietorship?

a)

owned by one person.

b)

owned by two or more persons

c)

organized as a separate legal entity under state corporation law

d)

owned by a governmental agency

2.

If total liabilities decreased by ¥45,000 and equity increased by ¥10,000 during a period of time, then total assets must change by what amount and direction during that same period?

a)

¥55,000 increase

b)

¥35,000 decrease

c)

¥35,000 increase

d)

¥45,000 decrease

3.

During July, its first period of operations, Aju Inc. sold ordinary shares for W1,440,000,000, earned net income of W195,000,000, and paid dividends of W40,500,000. Retained earnings at the end of July is?

a)

W1,635,000,000

b)

W1,594,500,000

c)

W1,399,500,000

d)

W154,500,000

4.

Which of the following would not be considered an external user of accounting data for the GHI Company?

a)

Taxing authority representative

b)

Management

c)

Creditors.

d)

Customers

5.

All of the financial statements are for a period of time except the

a)

income statement

b)

retained earnings statement

c)

statement of financial position

d)

statement of cash flows

6.

Hyundai Inc. purchased land for W118,000,000 in 2005. At December 31, 2014, an appraisal determined the fair value of the land is W136,000,0000.  If Hyundai follows the cost principle, the land will be reported on the statement of financial position at

a)

W100,000,000.

b)

W118,000,000

c)

W136,000,000

d)

W154,000,000

7.

Sources of increases to equity are

a)

issuance of shares

b)

purchases of merchandise

c)

dividends

d)

expenses

8.

All of the following transactions increase revenue except the

a)

sale of additional ordinary shares by British Airways

b)

sale of clothing  by the French Connection

c)

performance of acccounting services by PricewaterhouseCoopers.

d)

sale of pertroleum by Royal Dutch Shell

9.

Burgundy Inc. purchased supplies on account for €26,000. This transaction will

a)

increase liabilities and decrease equity by €26,000

b)

increase assets and decrease equity by €26,000

c)

increase assets and increase liabilities by €26,000.

d)

have no effect on the accounting equation

10.

Freirs Company paid the monthly rent of €6,000. This transaction will

a)

increase Cash and decrease Rent Expense by €6,000

b)

decrease Cash and decrease Rent Expense by €6,000

c)

decrease Cash and increase Rent Expense by €6,000

d)

have no effect on the accounting equation