Accounting I – Week 1

• Question 1

1 out of 1 points

	Which of the following is the correct accounting equation?
	Selected Answer: assets = liabilities + owner’s equity   Response Feedback: Correct! Any algebraic expression of assets = liabilities + owner’s equity can be converted to the accounting equation.

• Question 2

1 out of 1 points

	Which of the following financial statements is concerned with the enterprise at a certain point in time?
	Selected Answer: balance sheet   Response Feedback: Correct! The balance sheet presents the accounts’ balances on a certain date.

• Question 3

0 out of 1 points

	Which of the following accounts is not considered an asset?
	Selected Answer: trademark   Response Feedback: Try again! Anything that is “payable” is a liability. Review the Account and Analysis section in Chapter 2 of the textbook for more information.

• Question 4

1 out of 1 points

	Which of the following events does not require a journal entry?
	Selected Answer: agreement to perform a service at a future date   Response Feedback: Correct! There is no transaction in an agreement where money is not yet exchanged.

• Question 5

1 out of 1 points

	Robert Haddon contributed $70,000 in cash and land worth $130,000 to open a new business called RH Consulting. Which of the following general journal entries will RH Consulting make to record this transaction?
	Selected Answer: debit cash $70,000; debit land $130,000; credit Haddon, capital $200,000   Response Feedback: Correct! The correct journal entry would be: debit cash $70,000; debit land $130,000; credit Haddon, Capital $200,000.

• Question 6

0 out of 1 points

	All of the following items would appear on the balance sheet except _______.
	Selected Answer: patents   Response Feedback: Try again! Withdrawals appear on the statement of owner’s equity. Review the financial statement examples in Chapter 2 of the textbook for more information.

• Question 7

1 out of 1 points

	A simple form widely used in accounting as a tool to understand how debits and credits affect an account balance is called a ______.
	Selected Answer: T-account   Response Feedback: Correct! This type of form is called a T-account.

• Question 8

1 out of 1 points

	An account balance is ______.
	Selected Answer: the difference between the total debits and total credits for an account, including the beginning balance   Response Feedback: Correct! An account balance is the difference between the total debits and total credits for an account, including the beginning balance.

• Question 9

1 out of 1 points

	During the month of February, Hoffer Company had cash receipts of $7,700 and cash disbursements of $9,000. The February 28 cash balance was $2,200. What was the January 31 beginning cash balance?
	Selected Answer: $3,500   Response Feedback: Correct! $3,500 was the January 31 beginning cash balance.

• Question 10

1 out of 1 points

	The cost principle relates most closely to the ______.
	Selected Answer: valuation issue   ·       Res · · ponse Fe Question 1 1 out of 1 points The net income figure appears in all of the following financial statements except the _______. Selected Answer: balance sheet   Response Feedback: Correct! Net income is not an asset, liability, or owner’s equity account. ·       Question 2 1 out of 1 points The cost principle relates most closely to the ______. Selected Answer: valuation issue   Response Feedback: Correct! When we talk about historical cost, we are referring to its value on the balance sheet. ·       Question 3 1 out of 1 points Flores Realty Company has the following balance sheet accounts and balances: Accounts Payable            $6,000                   Earl Flores, Capital           ? Accounts Receivable      $1,000                   Equipment                          $7,000 Building                                $8,000                   Land                                      $7,000 Cash                                      $3,000 If, $3,000 of accounts payable were paid in cash, what would be the total of liabilities and owner’s equity? Selected Answer: $23,000   Response Feedback: Correct! The transaction described here would decrease accounts payable to $3,000 and decrease cash to $0. Then total assets (cash, accounts receivable, land, equipment, and building) combined provide the answer based on the accounting equation. ·       Question 4 1 out of 1 points Which of the following events does not require a journal entry? Selected Answer: agreement to perform a service at a future date   Response Feedback: Correct! There is no transaction in an agreement where money is not yet exchanged. ·       Question 5 0 out of 1 points The primary purpose of the trial balance is to test the _____. Selected Answer: analysis of transactions   Response Feedback: Try again! We use the trial balance to check if total debits equal total credits. Review the Trial Balance section in Chapter 2 of the textbook for more information. ·       Question 6 0 out of 1 points Which of the following shows the correct sequence of accounting procedures? Selected Answer: financial statements, journal, ledger, trial balance   Response Feedback: Try again! The journal is the original book of entry. The journal is posted to the ledger; the trial balance is taken from the ledger; and financial statements are prepared from the trial balance. Review the Trial Balance section in Chapter 2 of the textbook for more information. ·       Question 7 1 out of 1 points How would the accounting equation of Boston Company be affected by the billing of a client for $13,000 of consulting work completed? Selected Answer: +$13,000 accounts receivable; +$13,000 revenue   Response Feedback: Correct! We would add $13,000 accounts receivable and add $13,000 revenue. ·       Question 8 1 out of 1 points An account balance is ______. Selected Answer: the difference between the total debits and total credits for an account, including the beginning balance   Response Feedback: Correct! An account balance is the difference between the total debits and total credits for an account, including the beginning balance. ·       Question 9 1 out of 1 points Generally accepted accounting principles ______. Selected Answer: are changing continually   Response Feedback: Correct! The FASB continually adds more standards. ·       Question 10 0 out of 1 points Which of the following accounts is not considered an asset? Selected Answer: trademark   Response Feedback: Try again! Anything that is “payable” is a liability. Review the Account and Analysis section in Chapter 2 of the textbook for more information. edback: Correct! When we talk about historical cost, we are referring to its value on the balance sheet.

·       Question 1

1 out of 1 points

	The cost principle relates most closely to the ______.
	Selected Answer: valuation issue   Response Feedback: Correct! When we talk about historical cost, we are referring to its value on the balance sheet.

·       Question 2

1 out of 1 points

	How would the accounting equation of Boston Company be affected by the billing of a client for $13,000 of consulting work completed?
	Selected Answer: +$13,000 accounts receivable; +$13,000 revenue   Response Feedback: Correct! We would add $13,000 accounts receivable and add $13,000 revenue.

·       Question 3

1 out of 1 points

	Which of the following shows the correct sequence of accounting procedures?
	Selected Answer: journal, ledger, trial balance, financial statements   Response Feedback: Correct! The journal is the original book of entry. The journal is posted to the ledger; the trial balance is taken from the ledger; and financial statements are prepared from the trial balance.

·       Question 4

1 out of 1 points

	A simple form widely used in accounting as a tool to understand how debits and credits affect an account balance is called a ______.
	Selected Answer: T-account   Response Feedback: Correct! This type of form is called a T-account.

·       Question 5

1 out of 1 points

	All of the following items would appear on the balance sheet except _______.
	Selected Answer: withdrawals   Response Feedback: Correct! Withdrawals appear on the statement of owner’s equity.

·       Question 6

1 out of 1 points

	Which of the following financial statements is concerned with the enterprise at a certain point in time?
	Selected Answer: balance sheet   Response Feedback: Correct! The balance sheet presents the accounts’ balances on a certain date.

·       Question 7

1 out of 1 points

	The primary purpose of the trial balance is to test the _____.
	Selected Answer: equality of debit and credit balances in the ledger   Response Feedback: Correct! We use the trial balance to check if total debits equal total credits.

·       Question 8

1 out of 1 points

	An account balance is ______.
	Selected Answer: the difference between the total debits and total credits for an account, including the beginning balance   Response Feedback: Correct! An account balance is the difference between the total debits and total credits for an account, including the beginning balance.

·       Question 9

1 out of 1 points

	Which of the following is the correct accounting equation?
	Selected Answer: assets = liabilities + owner’s equity   Response Feedback: Correct! Any algebraic expression of assets = liabilities + owner’s equity can be converted to the accounting equation.

·       Question 10

1 out of 1 points

	Robert Haddon contributed $70,000 in cash and land worth $130,000 to open a new business called RH Consulting. Which of the following general journal entries will RH Consulting make to record this transaction?
	Selected Answer: debit cash $70,000; debit land $130,000; credit Haddon, capital $200,000   Response Feedback: Correct! The correct journal entry would be: debit cash $70,000; debit land $130,000; credit Haddon, Capital $200,000.