FNU ACG2003 2022 October Week 1 Quiz Latest

ACG2003 Principles of Accounting

Week 1 Quiz

Question 1Websavvy paid the electric and gas bill for the month in the amount of $325. What is the entry to record this transaction?

debit to Cash, $325; credit to Utilities Expense, $325

debit to Utilities Expense, $325; credit to Cash, $325

debit to Accounts Receivable, $325; credit to Utilities Expense, $325

debit to Utilities Expense, $325; debit to Accounts Receivable, $325

Question 2The accounting equation can be expressed in all of the following ways EXCEPT:

Assets = Liabilities + Owner's Equity.

Liabilities = Assets + Owner's Equity.

Liabilities = Assets - Owner's Equity.

Owner's Equity = Assets - Liabilities.

Question 3The five major types of accounts are:

asset, liability, drawing, revenue, and expense.

assets, drawing, owner's equity, revenue, and expense.

asset, liability, owner's equity, revenue, and expense.

drawing, liability, owner's equity, revenue, and expense.

Question 4A credit may represent a(n):

increase in an asset account.

increase in a liability account.

decrease in the capital account.

increase in an expense account.

Question 5Which of the following best describes accounting?

can be thought of as the "language of business"

is of limited or little use to individuals outside of the business

records economic data but does not communicate the data to users

relies upon concepts and principles that are independent of specific user needs

Question 6The balance sheet:

reports the amount of an organization's assets, liabilities, and owner's equity as of a specific date.

consists of three sections - (1) operating activities, (2) investing activities, and (3) financing activities.

reports the revenues and expenses for a period of time based on the matching concept.

reports the changes in owner's equity for a period of time.

Question 7The income statement:

 reports the amount of an organization's assets, liabilities, and owner's equity at the end of a period.

consists of three sections - (1) operating activities, (2) investing activities, and (3) financing activities.

reports the revenues and expenses for a period of time based on the matching concept.

reports the changes in owner's equity for a period of time.

Question 8A prepaid expense, such as the purchase of insurance for an upcoming period, is initially recorded in the accounting system as:

an asset.

a liability.

an expense.

a revenue.

Question 9A merchandising business:

changes basic inputs into products that are sold to individual customers.

sells a finished product that was purchased in that same form.

provides services rather than products to customers.

does all of these.

Question 10Every transaction affects at least two accounts.

The purchase of land in exchange for cash is recorded with which of the following entries?

debit to Cash and credit to Land

debit to Owner's Equity and credit to Cash

debit to Land and credit to Cash

debit to Land and credit to Accounts Payable