INSTRUCTIONS: Indicate the effect of each of the following transactions for the current month on assets, liabilities, and stockholders equity by inserting + for increase and for decrease in the appropriate columns at the right.

	Answers	For Scoring
TRANSACTIONS	A	L	SE
0.Paid cash for wages				0. ____
1.Received cash from stockholder as additional investment				1. ____
2.Received cash for services provided (sold)				2. ____
3.Paid cash to stockholders as dividends				3. ____
4.Charged customers for services sold on account				4. ____
5.Purchased cleaning supplies on account				5. ____
6.Paid cash to customer who was overcharged for services sold for cash				6. ____
7.Received cash for cleaning supplies sold to employee at cost				7. ____
8.Received cash on account from customers				8. ____
9.Recorded cost of supplies used during the month				9. ____
10.Paid rent				10. ____
11.Paid creditors on account				11. ____
12. Paid cash for utilities for current month				12. ____

NOTE: Each + or is assigned a weight of 2%.

FILL-IN-THE-BLANKPRINCIPLESANDTERMINOLOGY52%

INSTRUCTIONS: Answer the following questions or complete the statements by writing the appropriate words or amounts in the Answers column.

		For Scoring
QUESTIONS/STATEMENTS	Answers
0.An information system that provides essential information about the economic activities of an entity is called	accounting	0. ____
1.A business owned by one individual is called a(n)		1. ____
2.A business entity in which ownership is divided up into shares is called a(n)		2. ____
3.A business that buys products from other businesses and sells them to customers is referred to as a(n)		3. ____
4.Economic resources owned by a business are called		4. ____
5.A business entity that has attributes of a partnership and a corporation is called a(n)		5. ____
	continued

		For Scoring
QUESTIONS/STATEMENTS	Answers
6.Managerial accounting provides information to what kind of users of accounting information?		6. ____
7.Rules of accounting and disclosure for financial reporting are		7. ____
8.The expression Assets = Liabilities + Owners Equity is known as the		8. ____
9.The four most common financial statements for a corporation are:	a.	9. ____
	b.	____
	c.	____
	d.	____
10.Amounts owed to vendors by customers that result from sales on account are referred to as		10. ____
11.Sharpe offered for sale at $10,000 a machine that had been purchased for $24,000. If Barron paid Sharpe $9,000 for the machine, the amount that Barron would record in the accounting records for the purchase of the machine is	$	11. ____
12.An economic event that must be recorded is a(n)		12. ____
13.If operations for an accounting period resulted in fees on account of $66,000 and fees for cash of $34,000, the amount of revenue for the period was	$	13. ____
14.If operations for an accounting period resulted in cash fees of $95,000, fees on account of $10,000, and expenses paid in cash of $77,000, did the business incur a net income or a net loss for the period?		14. ____
15.What was the amount of the net income or net loss indicated in Question 14?	$	15. ____
16.If stockholders equity is $200,000 and liabilities are $66,000, the amount of assets is	$	16. ____
17.If assets are $120,000 and liabilities are $55,000, the amount of stockholders equity is	$	17. ____
18.The excess of revenues over expenses is referred to as	$	18. ____
19.If total assets increased by $80,500 and stockholders equity increased by $55,000 during the period, the amount and direction (increase or decrease) of the periods change in total liabilities was	$	19. ____
20.The stockholders equity at the beginning of the period was $200,000; at the end of the period, assets were $255,000 and liabilities were $40,000. If the owner made no additional investments or paid no dividends during the period, did the business incur a net income or a net loss for the period?		20. ____
21.What was the amount of the net income or net loss indicated in Question 20?	$	21. ____
22.A statement that reports net income or net loss and dividends paid to stockholders for a period of time is a(n)		22. ____
23.A report of changes in cash during a period of time is a(n)		23. ____

NOTE: No credit is given for a partially correct answer.