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WorksheetsBAC1064 Quiz 1
Total questions: 10
Worksheet time: 12mins
Financial accounting provides economic and financial information for all of the following except
creditors.
investors.
managers.
other external users.
A business whose owners enjoy limited liability is a
proprietorship.
partnership.
corporation.
sole proprietorship.
If total liabilities decreased by $40,000 and owner’s equity increased by $30,000 during a period of time, then total assets must change by what amount and direction during that same period?
$50,000 decrease
$10,000 decrease
$10,000 increase
$50,000 increase
At October 1, Flambo Company reported owner’s equity of $68,000. During October, the owner made additional investments of $10,000 and the company posted a net loss of $4,000. If owner’s equity at October 31 totals $70,000, what amount of owner drawings were made during the month?
$0
$4,000
$6,000
$10,000
Able2 Company received a cash advance of $800 from a customer. As a result of this event,
assets increased by $800.
owner’s equity increased by $800.
liabilities decreased by $800.
assets and owner’s equity both increased by $800.
Qwik Company showed the following balances at the end of its first year:
Cash $ 8,700
Prepaid insurance 9,400
Accounts receivable 7,000
Accounts payable 5,800
Notes payable 9,400
Owner’s Capital 2,300
Owner’s Drawings 1,400
Revenues 44,000
Expenses 35,000
What did Qwik Company show as total credits on its trial balance?
$52,400
$61,500
$62,900
$70,900
The first step in the recording process is to
prepare financial statements.
analyze each transaction for its effect on the accounts.
post to a journal.
prepare a trial balance.
If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates
no errors have been made.
no errors can be discovered.
that all accounts reflect correct balances.
the mathematical equality of the accounting equation.
A credit sale of $3,600 is made on July 15, terms 3/10, n/30, on which a return of $100 is granted on July 18. What amount is received as payment in full on July 24?
$3,395
$3,492
$3,392
$3,600
Mantle Company’s accounting records show the following at the year ending on December 31, 2016:
Purchase Discounts $ 16,500
Freight - In 22,100
Purchases 413,000
Beginning Inventory 47,000
Ending Inventory 57,600
Purchase Returns 15,600
Using the periodic system, the cost of goods sold is
$423,600.
$392,400.
$403,000.
$413,600.
