Saint Leo MBA 560 quiz 1

1.
The claims of a business’s creditors are called:
(Points : 2)
assets.
liabilities.
equity.
revenue.

Question 2.
2.
ABC Company experienced an accounting event that affected its financial statements as indicated below:

Assets	=	Liab.	+	Equity	Rev.	–	Exp.	=	Net. Inc.	Cash Flow
+		NA		+	+		NA		+	NA

Which of the following accounting events could have caused these effects on ABC’s financial statements?
(Points : 2)

Earned revenue on account
Purchased equipment on account
Provided services to customers for cash
Recognized accrued salaries owed to employees

Question 3.
3.
Rowena Company spent cash to purchase equipment. As a result of this event:
(Points : 2)

total liabilities increased.
total assets increased.
net income increased.
total assets were unchanged.

Question 4.
4.
An element that is often present when fraud occurs is:
(Points : 2)

the availability of an opportunity.
the existence of some form of pressure.
the ability to rationalize.
all of the above.

Question 5.
5.
Which financial statement reports the results of a business’s operations?
(Points : 2)

Income statement
Statement of changes in equity
Balance sheet
Statement of cash flows

Question 6.
6.
At the end of the accounting period, Sefcik Company made an
adjusting entry for supplies consumed. Which of the following choices
reflects how this event would affect the company’s financial statements?

Row	Assets	=	Liab.	+	Equity	Rev.	–	Exp.	=	Net Inc.	Cash Flow
One	+ –	=	NA	+	NA	NA	–	+	=	–	NA
Two	–	=	NA	+	–	NA	–	+	=	–	NA
Three	–	=	–	+	NA	NA	–	NA	=	NA	NA
Four	+ –	=	NA	+	NA	NA	–	NA	=	NA	+ IA

(Points : 2)

Row One
Row Two
Row Three
Row Four

Question 7.
7.
Expenses are shown on the:
(Points : 2)

income statement.
statement of changes in stockholders’ equity.
balance sheet.
all of the above.

Question 8.
8.
Which of the following transactions is an asset use transaction?
(Points : 2)

Payment of cash dividends to owners
Paying cash to acquire furniture
Acquiring cash by issuing stock to owners
Providing services to customers for cash

Question 9.
9.
Which of the following accounts would not appear on a balance sheet?
(Points : 2)

Equipment
Interest Payable
Interest Revenue
Retained Earnings

Question 10.
10.
Recognition of revenue may result in which of the following?
(Points : 2)

A decrease in a liability
An increase in a liability
An increase in assets
Both A and C

Question 11.
11.
As of December 31, 2009, Bueno Company had $1,000 in
liabilities, $8,000 in common stock, and $2,500 in retained earnings.
The total amount of assets on that date is:
(Points : 2)

$10,000
$12,500
$11,500
$7,500

Question 12.
12.
Ohio Company provided services to a customer for $1,700 cash. As a result of this event:
(Points : 2)

total assets decreased.
total liabilities increased.
retained earnings increased.
cash flows from financing activities increased.

Question 13.
13.
The result of the matching process is reported on which financial statement?
(Points : 2)

Balance Sheet
Income Statement
Statement of Changes in Stockholders’ Equity
Statement of Cash Flows

Question 14.
14.
Accounting information focused on the needs of external users is:
(Points : 2)

financial accounting.
managerial accounting.
claims accounting.
not-for-profit accounting.

Question 15.
15.
The amount of land owned by a business appears on which financial statement?
(Points : 2)

Income statement
Statement of changes in stockholders’ equity
Statement of cash flows
Balance sheet

Question 16.
16.
Which of the following is an asset source transaction?
(Points : 2)

Purchased machine by issuing a note payable
Paid a cash dividend to stockholders
Purchased equipment for cash
Collected cash from an account receivable

Question 17.
17.
Accounting information is said to be reliable if:
(Points : 2)

it is based on recent (not longer than 6 months) information.
it was prepared by someone with good credentials in accounting, such as a certified public accountant.
it can be independently verified.
it complies with rules and standards of the Internal Revenue Service.

Question 18.
18.
Which of the following would be included in the “cash flows
from financing activities” section of the statement of cash flows?
(Points : 2)

Collected cash from accounts receivable
Finance Company loaned cash to another company
Paid cash dividend to stockholders
Purchased business insurance

Question 19.
19.
Which of the following lists represents the correct sequence of stages in an accounting cycle?
(Points : 2)

Record transactions, prepare statements, adjust accounts, and close temporary accounts
Prepare statements, close temporary accounts, record transactions, and adjust accounts
Close temporary accounts, record transactions, prepare statements, and adjust accounts
Record transactions, adjust accounts, prepare statements, and close temporary accounts

Question 20.
20.
Which of the following accounts is a permanent account (an account that is not closed)?
(Points : 2)

Prepaid Insurance
Service Revenue
Salaries Expense
Rent Expense

Saint Leo MBA 560 quiz 1

Order a similar assignment, and have writers from our team of experts write it for you, guaranteeing you an A

Order a similar assignment, and have writers from our team of experts write it for you, guaranteeing you an A