o] 0 47) 0n January 1, ABC sold 30,000 in products t o a customer on account. Then on Janusry 1a ABC 2) The Sellowing fnancial infcemation is from ABC. All debt is due witchin one yewr collected the cash on that account, What is the impact on ARC's ACcounting equation from the collection of cash on Jaary 10 A) Assets decrease and liabilitics decreas B) No net efSect on the accounting equation C) Assets increase and stockholders oquity increases D) Assets increase and liabilities decrease A) The selier C) Neiher the bayer noe the seller B) Both the buyer and the seller D) The buyer 49) In Cash Flow reporting when the firm goquiees inventory B) Theee in a Gain A) 528,000. B) $22,000 C) $45,600. D) 563,000. A) False bawhat impact on the accounting equation equity increases $1) Purchasing office oquipment on A) Inventory C) Cash B) Ascount Reccivable D) None of the other three ncrease and D) Assets decrease and liablities decase B) Video Repay loan to the bank A) $7,000. C) 51,500 D) $2,000 56) Which of the fellowing is not a major section in the statement of cash fows B) Cash lows from operating activites D) Cash Bows from financing activities C) Cash flows from investing 57) In the Allowance Method when we write off a roceivable Increase in a liability, Doreaac Revetue. A) T B) Assets increase, Nat Income increases C) Assets decreasc, Net lncome decreases D) Assets stay the same, Net Income stays the same. For.jannal enry with only two les, de filwing emyisval Decrease in Owners' Equty. Decrease ma second Owncn' Equity. s8) ABC had the Solowing final helances ahor the firwt year of openations: asse $55,000, A) False 65) Which of he following statements is NOT corect about the financial stutements? A) 530,000. A halance sheet reparts awets, lisbilies, , and expenaes B) The statemcnt of stockholders' Ponts comnon stock, dividends, B) $13,000 C) 57,000 D) 355,000. retained C) An income statement sports revenucs, cxpenses, and net incomme information D) The stutemsent of cash Bows shows cash inbows and outflows from operating, financing and Net income-$100,000 Average total assts-$80,000 Average ecounts What is ABC's average collection period (rounded to the newrest whole day)? investing activities. -$20.000 A) 9 days C) 18 days D) 73 days d appear in AlC's year-end balance sheet? C) Five A)$1,000. C)$110,000 D) $28,000. A) Three B) Two. D) Four A) Increase assets; Decrcase liabilities B) Decrease assets; Increase assets C) Decrease assots; lIncrease stockholdan' equity D) Decrease liabilities, Increase expesaes Decrease in Owners Equity, Decrease in Revenue A) Tre Increase in Revcnc, Increase in Eapese B) Fals 62) 0n March , ABC purchascd a desk for $450 on account On March 22, ABC parchasod desk for $500 also on account, and then on March 24, ABC paid $400 on account. At the end of C) 5450 A) $9s0. 69) A company receives a $50,000 cash deposit from a cussomer on October 15 but will not provide services until November 20. Which of the following statements is true? 6) ABC had the following set income (loss) the first theee years of operation: $7,100, (51,600), and $3,600 amount of dividends paid over these three yean? A) The company records service revenue on October 15 B) The company records cash collection on Nowember 20 C) The company records nothing on October 15. D) The company records deferred revemue on Oetober 1s at the end of year throe is 31,100,wt was the sotal A) 58,000 B) 5500 c) sa. 77) In a Big Bach, a 70)For jornal entry with only two lines,the twing entry is valid: C) does wisdow dressing B) changes accounting D) increases Expees Increase in one Owners Equity, Decrease in a second Ownen' Equity. B) Tra T8) Which of the Sollawing are made when the business does somothing A)Closing Estries B) Adusting Eatries C) Transaction Entries 71) ABC estimates uncollectible accounts based on the pencentage of sccounts spceivable Whut effoct will recording the estimate of uncollectible have on the accounting equxtion? A) Increase liabilities and decrease Docrcase in an asset, Decrease in a lability C) Decrease asses nd decrew sa baldn' D) Increase assels and decrease stockholdent oquty. Increase in an asset Decrease in an xpensc )For . nal emy with only two lina, following-y valid: Increase in one Liability, Decrease in asecond socond liability. 3) For a journal estry with only two lines, be following enary is valid 74) Which of the Sollewing is not peasibla when recording a eaaaction A) Ta acrease in Owsed Equity, Increase in Revenue Increase in an asset, lncrease in an Expeiss A) useful for A) Providing awountabley. C) Prodicting cash nass increase and asscts decrease. oquity iscreases and pscts increase. C) Stockholdars' aquity decroases nd assets decrease. D) One asset increases and anothor assct decreases hares of common stock for $15,000cas 75) How many of the following events would require an expense to be heir first monh's salarics decreased ABC's total asscta? How many of these t Receiving but noe paying a current utility bill Paying foer insurance in advance D) Four. A) Three. B) One A) Three B) One C) Two. 14) After the Fiest STEP in the Opecing Cycle the firs bas? A)lavem ry C) Aocount Roceivable D) None of de othor theee 45) how many types of Cash Flow are there os the Cash Flow statemens A) Three C) Two 86) Which vtanent in A) Expense C) $1,260 D)$34.740 C)58 C) Adjusting Es 94) For a journal entry with only two lines, de following entry is valid Decrease in one Exponse, Decrease in another Expense A) Tre 104) When Managers report they A) Always try to look had C) Ahways try to look good A) Are reportod in the Financial Siata 05) Subsidiary Acounts and Master Accoupl B) Are only wsod in the Income Statemen C) Are bookkeeping deviees 106) Which of the fellowing is resonded upos reccipt ofs C) Credit Accounts Roceivable 5882 Dj Credit Purchase Discount SI A) Increase of $13,000 C) Increase of $14,000 B) Increase of $12,000 D) Increase ef $11,000 Previde sarvices to customers for $27,000 ttl) The Acconts Receivable account has a beginning halance of $10,000 and the company provides ervices ef $30,000 on accouns during te month. The nding balance w 512,000 Reccived $25,000 trom issuingcommos atock B) 552,000 D)562,000 A) Four B) Three C) One 112) lnCash Flow mperteguthc point of Sale 08) ABC opened or business on Juury 1, 208, and paid Sor two insurance policies effestive ht pelicy was $36,000 or 18moeths, and the crop damage policy wa 512,000 atwo- year sarm What was the balasce in ABCs Prepaid Insurance accoun as of Decenber 31 B) There is so Lom and C) There is a Gals B)530,00 C)$18,000 A) 1 C) None of the odhen theee B) 1,185 D) 1,184 Decrease in an asset, Increase ins a liabilicy 114) Which of the following besl explains the meing of scklo A) The dfferonce betwcon total sevcnucs and total B) The anount of common stock less C) All sevennes, expesses, and dividends over the life of he D) The amount of capital invested by stockholders plus profis retained over the e of the 115) Choose one A) The Statemonl of Cash Flows never balances B) It is possible for Cash Inflows to C) The Stasement of Cash Flows always balances Cah Outfiews on the Statement of Cash low 116) Afher the 2nd step in the Operating Cycle, the firm bas? 123) Below in the compasy's Cash T-account A) Cash B) leventory C) Receivable 117) A company has the following ranactions 1. Pay emplayees salaries for the currens period 5. Use supplies peeviously purchased. The 53,100 amount could ropresent which of the Sollowing ) Payment for salaries D) Collection rom cuomers C)3. D)2. Decrcase in one Revenus, Deease in another Revese Decrease in Expense, Increase in Dividends B) Fale Decrease in &Lability, lecroase Onar' Equity decressed by $21,000during that same onth, did aacts incroase or decrose and by how h B) $3.4,000 decrease. D) 534,000 increase C) 555,000 inseac 126) Which of the accousts are deresed on the debit uide and inccssed on the eredit side? 120) The Acounts Payabile account bas aeinning balance of $12,000 and the compasy Dividends." 550,000 of wupplies on account daring dhe month. The anding balance was 510,000 How much ad the company pay e crediues daring the month? A) $50,.000 B) 360,000 C) 552,000 D) 562,000. A) Fourth D) Seeond 128) For most busiesses what in the critical eat Docrease in a liabiliy, Decrease in an Expens A)Fa 122) For a journal entry wih only two lines, the following cntry is valid: Decrease in a liability, Inorease in Dividnds A) T Decrease in Revene Decoase in Expensc 131) For a jounal entiry with only two lines, the following estry is valid: Increase in Ownen Equity, Increase in Dividends 40) Which of the following is aot a possible joumal enry? C) Debit expenses; Cdin liahiliies 132) For a journal entry with only two lines, the following entry is valid 141) For a joursal entry with oely two lines, the following antry is valid Increase in n set, Decrease in a Owners Equity. acrease in one Liability, Jecrease is a sccond second liabliny A) Fale 133) Which of the following are made BEFORE Trial Balance is prepared? 142) Considar the following ransactions A) Closing Entries B) Adjusting Entries C) Transaction Entrics sood common stock for cash 134) Which of the following is a balance sheet item A) Net Income C) Uulities Expense. B) Cash. D) Dividends llow many ofthac lur nsactions increased the given o yial anti? A) One. B) Four Dj Throc. 135) For a journal entry with only two lines, the following entry is valid Increase in a liabilay, Decreasc in Dividands 43) Far a journal antry with only two lines, the following enay is valid B) Fale Decrease in an anset, Increasc in a Owners Equity 136) For a journal entry widh only twg lises, the folowing entry is vald 144) For which of dhe folowing must Debits equal Credits (This siion may have ulople anwen A) Tre A) Transaction Entries 137) On September 30, ABC Ca paid employee salanes of$7,000, including$1,000 it owed to its employees last month. What are the c fica erth" uansaion on h accoanngequatian? Increase in a Liablay, Increase in Reven A) B) Assets decreased, Nabilines and assets decreased Decrease in Owners Equily, Iscresse in Reve D) Assets decreased, penses doreased, and I E) Assets increasod expenacs increased, and Nabilities decreased increased B) Tre 138) For ajournal entry wich only two lines, the following entry is vald Increase in Revenue, Decrease in Dividends B) Fale 139) A company provides services on aCcoust. Indicate how this transaction would affect (I) asscts, (2) 148)which ofthe flowing KCREh would nly have 1 bbibalape? tock holders' equity, and (3) revenues A) () No effect, (2) No efflect (3) No efect C) (a) No effoet, (2) Increase (3) Incrase A) Accousts Payable, Service Revesus,Common Stock B) (1) Increase, (2) Increase (3) Incroase D) (1) Increass, (2) No effect (3) Increase C) Salaries Payablk, D) Cash, Delivery expense, Dividends A) Debit Rent Expense, crodin Cash C) Debit Cash, credin Prepaid Rent B) Debit Prepaid Ren, crodit Rent Expensc D) Debit Prepaid Rent, credk Cash Increase in Owners' Equity, Decrease in Expense 50) On Juary L, ABC stared the year with a $492,000 balnce in Retained Earsings and a $605,000 balance in Common Stock. Duing the year, he company Teported net income of $92,000, paida dividend ot $15,200, and ined more cosmon stock for $277,500What is o equity at the end of the year? A)51.201,300 C)51,097,000 ncrease in an asset, Decreuse in a liabily A) True Expesse 2,000 2) Which of the flreing bathe " gle pealet-conch prices? A) Total dividends B) Net incope C) Total neves D) Total ansets 153) At dhe beginning of Decembet, AlC had $2.000 in supplics on hand Daring mots, pplies purchased amounted to 53,000, but by de end of the month the wapplies balance was only $800 A) Debit Sepplics $4,200, credit Supplics Expensc $4,200 B) Debit Cash C) Debit Supplies Expense $4,200, crodin Supplies $4,200 D) Debit Cash $4,200, crodit Supplics $4.200 A) These B) Five. Di Six. 154) Recevmg ..ality bill for cost, ia 'ment-but delaying paymeu umideldkw% pcriod is an Increase in one revenw, Decrease in another revenue A) Deferred revense C) Accrued revenue B) Prepaid expense D) Acarued expenic 161) Separation of duties eceurs when two or more people act in to cincuevent internal B) DR C CR coetrola. A) Fale 162) The Trueblood Criterion is used by B) Internal reporta (Managcrial Accostin) Provided Collected cash from customers on accos A) Four B) Throe. D) Two