Financial Accounting Ch. 1 Quiz

If at the end of the accounting period the assets total $8000, and the liabilities total $5,000, then what must be the amount of equity?

$3,000

If at the end of the accounting period the liabilities total $6,000, and equity totals $10,000, then what must be the total of the assets?

$16,000

Which of the following financial statements does not cover a period of time?

Balance Sheet

Which of the following is true about ethics in accounting?

All of the above

The investment of cash in the business will result in which of the following?

An increase in cash and an increase of equity

Keith Manich deposited $5,000 in a bank account he established for a pet store that he is going to own and operate as KM’s Pets, Incorporated. Recording the deposit will result in which of the following changes to the components of the accounting equation?

Increase in an asset and increase equity

The owner of a computer services business was able to acquire a new computer, valued at $5,000, by establishing an account with the computer vendor, Com Pewters Unlimited. There was no down payment. Recording the transaction will do which of the following?

Increase an asset, increase a liability

A Molly’s Real Estate recorded the payment of an account payable to an office supplies store. What effect will recording the transaction have on the components of the accounting equation?

Decrease an asset, decrease a liability

Cash dividends are declared and paid to the stockholders of the corporation. How will this transition affect the components of the accounting equation?

Decrease an asset, decrease equity

Purchasing supplies for cash will have what effect on the components of the accounting equation?

Increase supplies and decrease cash

Services which you perform for a customer, for cash, will have what effect on the components of the accounting equation?

Increase cash and increase equity

Cash is received from a client for office rental space. What effect will this transaction have on the components of the accounting equation?

Increase cash and increase equity

Which of the following are creditors’ claim on the assets of a company?

Liabilities

Which of the following statements describes a company’s financial position at a point in time?

Balance Sheet

In the PowerPoint presentation over the chapter, a cartoon character chose to different accounting opportunities. Which two did he choose?

Criminal Investigation and Strategy

In the PowerPoint presentation, there was a slide talking about setting up Accounting Principles. The cartoon character asked if a particular person created the rules. Who was the person that they suggested?

Noah

In the PowerPoint presentation, the company borrowed money from a bank. What was the name of the bank?

St. Peters Ntl Bank

In the PowerPoint presentation, there was a monkey talking about the Accounting Equation. What did he say?

“The equation must stay balanced!”

In the PowerPoint presentation, what was the name of the man who started the company?

Studley Scott

In the PowerPoint presentation, the company bought what piece of odd equipment?

Computer/Cell Phone/Coffeemaker

In the PowerPoint presentation, what was the name of the store where they bought supplies?

O’Holy Office Supply Store

In the PowerPoint presentation, the company provided consulting services to which restaurant?

Olive Garden

In the video, one accountant, Adriana, explains that her day to day accounting activities ________ (She specifically said it)

Vary from day to day

In the video, the lecturer explains that accounting is the language of _____. (What word did he use to complete the sentence?)

Business

In the 3rd video, the lecturer mentions a government “act” that was passed by congress to add consistency in financial reporting. What was the ACT that was mentioned by the narrator?

Sarbanes Oxley Act