Solve all (1 to 20) questions correctly

1) Determine the amount of Income (X) for the following information: Assets $ 4,00,000; Liabilities $3,00,000 : Capital 2X ; Expenses $2,00,000. Income (X) is: A. $1,00,000. B. $50,000. $75,000. C. $1,50,000. D. $3,50,000. E. None of the above.

2) Arrowhead Boat Shop purchased a truck for $36,000, making a down payment of $15,000 cash and signing a $21,000 note payable due in 60 days. (Indicate all correct answers.) A. Total assets increased by $36,000. B. Total liabilities increased by $21,000. C. From the viewpoint of a short-term creditor, this transaction makes the business less solvent. D.This transaction had no immediate effect upon the owners equity in the business.

3. According to the rules of debit and credit for balance sheet accounts: A. Increases in asset, liability, owners equity accounts are recorded by debits.B. Decreases in asset, and liability accounts are recorded by credits. C.Increases in asset and owners equity accounts are recorded by debits.D. Decreases in liability and owners equity accounts are recorded by debits.

4. On March 31, the ledger for Regal Dry Cleaning consists of the following:

Cleaning Equipment $27,800 Accounts Receivable $21,000

Accounts Payable 15,700 Cash 6,900

R. Temple Capital 20,000 Salaries Payable 9,600

Office Equipment 2,000 Notes Payable 22,500

Automobile 7,500 Cleaning Supplies 2,600

In a trial balance prepared on March 31, the total credit column is: A. $67,800. B. $93,100. C. $25,300.D. $65,300

5.The following journal entry was made in Dixie Stores accounting records:

Cash 24,000

Notes Receivable 96,000

Land 1,20,000

This transaction: A. Involves the purchase of land for $1,20,000. B. Involves a $24,000 cash payment. C. Involves the sale of land for $1,20,000. D. Causes an increase in total assets of $24,000.

K).The net income or loss for a particular period of time is reported on which of the following?

A. Income statement. B. Balance sheet. C. Statement of cash flows. D. Statement of changes in owner's equity. E. All of the above

6.The financial position of the business on a given date is reported on which of the following?

A. Income statement. B. Balance sheet. C. Statement of cash flows. D. Statement of changes in owner's equity. E. All of the above

7. Determine the amount of Income (X) for the following information: Assets $18,00,000 ; Liabilities $13,50,000 : Capital 6X ; Expenses $9,00,000. Income (X) is: A. $1,00,000. ; B. $50,000. ; C. $75,000. ; D. $1,50,000. ; E. $4,50,000. F. None

8.During the current year, the assets of Dobson increased by $87,000, and the liabilities decreased by $21,000. If the owners equity in the business is $2,37,000 at the end of the year, the owners equity at the beginning of the year must have been: A. $1,71,000; B.$1,29,000; C. $3,45,000; D. $3,03,000 E.None of the above.

9. A transaction caused a $80,000 decrease in both total assets and total liabilities. This transaction could have been: A. Purchase of a delivery truck for $80,000 cash; B. An asset with a cost of $80,000 was destroyed by fire. C. Payment of a $80,000 bank loan. D.Collection of a $80,000 account receivable.

10. Beginning capital was $10,000. Withdrawals were $24,000. The owner made additional investments during year of $60,000. The ending capital balance was $90,000. What was the net income or net loss for the period? A. Net income, $44,000 B. Net loss, $44,000 C. Net income, $56,000 D. Net income, $30,000 E. None of the above

11. Determine the amount of liabilities of a firm for the following transaction: Assets $28,00,000, Owners Equity $ 20,00,000, Income $3,60,000 & Expenses $1,60,000. A. $3,00,000. B.$ 6,00,000. C. $7,20,000. D.$4,00,000. E.None.

12. The assets arising from sale goods or services on account or on credit to customers is called: A. Notes payable. B.Liability. C. Income. D. Accounts Receivable. E.Expenses. F.All.

13. Borrowed money from Sonali Bank: A. Assets increase & Capital increase. B.. Assets increase & decrease. C. Assets & Liability increase. D. Assets & Liabilities decrease. E. None.

14. The return of defective equipment to the supplier: A. Increase assets & capital. B. Decrease assets & capital. C. Increase assets & Liabilities. D. Decrease assets & Liabilities. E. Increase one asset & decrease another asset. F. None

15. Cash and those assets which are likely to be converted into cash within one year or less than one year the balance sheet date is called: A. Accounts payable. B.Long term Assets. C.short term Assets. D. Current Liabilities.

16. A business can choose a fiscal year that correspond to: A. The Calendar year. B. The natural business year. C. Any twelve month period. D. The budgeted year. E. The Accounting year.F. All of the above.

17. Stockholder invested cash by buying capital stock: A. Assets increase & Assets decrease. B. Assets increase & Capital decrease. C. Assets increase & Liability increase. D. Has no effect on the Accounts payable. E. All.

18. Paid for equipment purchase earlier on account: A. Assets increase & decrease. B. Assets increase & Liability increase. C. Assets increase & Liability decrease. D. Assets decrease & liability decrease. E. Assets & Capital increase.

19. Paid dividend to owners: A. Assets increase & Capital increase. B. Assets decrease & Capital decrease. C.Assets & Liability increase. D. Assets & liability decrease. E. Remained the same.

20. Sold furniture at cost for cash at no gain or loss: A. Assets decrease & increase. B. Capital increase. C. Liability decrease. Liability increase. D. Assets & Capital increase. E. Has no effect on Capital.