Question 1

Which of the following would not be classified as a current asset?

Accepted Answer

A)  Cash
B)  Accounts payable
C)  Supplies
D)  InventoryE) None of the above
F) C) and D)

Question 2

A current asset is one that:

Accepted Answer

A)  the company has owned for over one year.
B)  the company has owned for over five years.
C)  the company will use up or convert into cash in less than one year.
D)  the company has updated to reflect its current value.E) C) and D)
F) B) and D)

Question 3

The trial balance is a financial statement that reports the assets,liabilities,and equity of a business at a point in time.

Accepted Answer

A) True 
 B)False

Question 4

Current liabilities are expected to be

Accepted Answer

A)  converted to cash within one year.
B)  settled within one year.
C)  used in the business within one year.
D)  acquired within one year.E) A) and B)
F) A) and C)

Question 5

What is the amount of the total assets to be reported on the balance sheet?

Accepted Answer

A)  $150,000
B)  $160,000
C)  $90,000
D)  $80,000E) A) and D)
F) A) and C)

Question 6

What is the amount of total assets?

Accepted Answer

A)  $16,000
B)  $5,600
C)  $15,000
D)  $15,600E) A) and B)
F) None of the above

Question 7

What is the total of the CREDIT balance accounts?

Accepted Answer

A)  $111,040
B)  $104,090
C)  $113,540
D)  $108,590E) A) and C)
F) B) and D)

Question 8

Prepare a classified balance sheet for Purrfect Pets,Inc. ,using the following data for June 30,2013.

Accepted Answer

The answer of Prepare a classified balance sheet for Purrfect...

Question 9

The requirement that transactions be recorded at their exchange price at the transaction date is called the

Accepted Answer

A)  conservatism exception.
B)  separate entity assumption.
C)  cost principle.
D)  monetary unit assumption.E) A) and C)
F) C) and D)

Question 10

If a company uses $100 million in cash to pay off debt,its stockholders' equity will rise $100 million.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would be listed as a current liability?

Accepted Answer

A)  Cash in the bank
B)  Notes payable due in two years
C)  Supplies
D)  Accounts payableE) C) and D)
F) A) and C)

Question 12

A company uses $100,000 in cash to pay off $100,000 in notes payable.This would result in a:

Accepted Answer

A)  $100,000 debit to Notes Payable and a $100,000 credit to Cash.
B)  $100,000 credit to Cash and a $100,000 credit to Notes Payable.
C)  $100,000 debit to Cash and a $100,000 credit to Notes Payable.
D)  $100,000 debit to Cash and a $100,000 debit to Notes Payable.E) C) and D)
F) B) and C)

Question 13

Each account is assigned a number and this listing of all accounts is called a

Accepted Answer

A)  trial balance.
B)  journal.
C)  ledger.
D)  chart of accounts.E) A) and D)
F) A) and C)

Question 14

Which of the following statements is FALSE about the current ratio?

Accepted Answer

A)  Instead of using the dollar amounts,the current ratio makes it easier to compare several companies.
B)  The current ratio is used to evaluate a company's ability to pay current obligations.
C)  Having more current assets than current liabilities will yield a current ratio less than 1.
D)  A high current ratio suggests good liquidity.E) All of the above
F) None of the above

Question 15

Which of the following statements is TRUE?

Accepted Answer

A)  Asset and liability accounts have a normal debit balance.
B)  To debit an account means to increase it.
C)  Contributed capital and retained earnings have a normal credit balance.
D)  To credit an account means to decrease it.E) A) and B)
F) None of the above

Question 16

The normal balance of an account is on the same side that increases the account.

Accepted Answer

A) True 
 B)False

Question 17

The amount of Total Current Assets that would be reported on the company's balance sheet at the end of the year would be:

Accepted Answer

A)  $362,600.
B)  $368,500.
C)  $139,500.
D)  $327,000.E) A) and C)
F) A) and B)

Question 18

The characteristic shared by all liabilities is that they:

Accepted Answer

A)  provide a future economic benefit.
B)  result in an inflow of resources to the company.
C)  always end in the word "payable."
D)  obligate the company to do something in the future.E) A) and B)
F) A) and D)

Question 19

Transactions include which two types of events?

Accepted Answer

A)  Direct events,indirect events.
B)  Monetary events,production events.
C)  External exchanges,internal events.
D)  Past events,future events.E) A) and B)
F) None of the above

Question 20

Which of the following is a recordable transaction for a gardening supply store?

Accepted Answer

A)  The company signed an agreement to rent store space at $200 month.
B)  The vice president of the company spoke at a luncheon which contributed to enhancing the company's reputation as a responsible company.
C)  The company ordered supplies for $500.
D)  The company loaned $500 to an employee.E) All of the above
F) A) and B)

Exam 2: The Balance Sheet

A company uses $100,000 in cash to pay off $100,000 in notes payable.This would result in a:

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The characteristic shared by all liabilities is that they:

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Which of the following would not be classified as a current asset?

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What is the total of the CREDIT balance accounts?

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Which of the following would be listed as a current liability?

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Prepare a classified balance sheet for Purrfect Pets,Inc. ,using the following data for June 30,2013.

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Which of the following statements is TRUE?

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The trial balance is a financial statement that reports the assets,liabilities,and equity of a business at a point in time.

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If a company uses $100 million in cash to pay off debt,its stockholders' equity will rise $100 million.

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The requirement that transactions be recorded at their exchange price at the transaction date is called the

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The amount of Total Current Assets that would be reported on the company's balance sheet at the end of the year would be:

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Transactions include which two types of events?

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Which of the following statements is FALSE about the current ratio?

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Which of the following is a recordable transaction for a gardening supply store?

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Each account is assigned a number and this listing of all accounts is called a

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What is the amount of the total assets to be reported on the balance sheet?

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What is the amount of total assets?

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The normal balance of an account is on the same side that increases the account.

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Current liabilities are expected to be

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A current asset is one that:

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