POST ACC111 UNIT 2 CH 2 QUIZ

Question 1

2 out of 2 points

Correct

Post Company uses $10,000 in cash to pay $10,000 on accounts payable. This would result in:

$10,000 credit to cash and a $10,000 credit to accounts payable.

$10,000 debit to cash and a $10,000 debit to accounts payable.

$10,000 credit to cash and a $10,000 debit to accounts payable.

$10,000 debit to cash and a $10,000 credit to accounts payable.

Question 2

2 out of 2 points

Correct

A company was recently formed with $ 100,000 cash contributed to the company by stock-holders. The company then borrowed $ 50,000 from a bank and bought a $ 20,000 vehicle for cash. They also purchased $10,000 of equipment by paying $ 2,000 in cash and issuing a note for the remainder. What is the amount of total assets to be reported on the balance sheet?

$ 158,000

$ 160,000

$ 162,000

$ 100,000

Question 3

2 out of 2 points

Correct

In regard to the balance sheet, which of the following statements is true?

Income and expenses are reported on the balance sheet.

The balance sheet reflects both a point in time and a period of time.

The balance sheet reflects a period of time.

The balance sheet reflects a point in time.

Question 4

2 out of 2 points

Correct

Which of the following are current assets?

Cash, accounts receivable, inventory, accounts payable

Cash, accounts receivable, inventory, supplies

Cash, equipment, inventory, vehicle

Cash, accounts receivable, inventory, building

Question 5

2 out of 2 points

Correct

Which of the following true In regard to current liabilities?

Current liabilities are liabilities that you recently paid.

Notes payable is normally a current liability.

Equipment, vehicles, buildings and land are all current liabilities.

Current liabilities are debts and obligations that must be paid within 12 months or less.

Question 6

2 out of 2 points

Correct

A company purchases $23,000 of supplies in the current month and promises to pay for them next month. How would the company record a liability for the supplies?

This liability is not a recognized liability until the payment is due.

$23,000 would be posted as a credit to accounts payable.

$23,000 would be posted as a credit to supplies expense.

$23,000 would be posted as a debit to accounts payable.

Question 7

2 out of 2 points

Correct

Alpha Company borrows $200,000 from its bank and buys equipment. How does this transaction affect the accounting equation?

Assets and Liabilities both increase by $200,000.

Assets and Equity both decrease by $200,000.

Assets, liabilities and equity are unchanged.

Equity increase by $200,000 and liabilities decrease by $200,000.

Question 8

2 out of 2 points

Correct

Bravo Company purchases Land for $200,000 paying cash of $$80,000 and signing a note for the balance. The accounting entry would be:

Debit Land $120,000; Credit Notes Payable $120,000.

Debit Land $200,000; Credit Cash $200,000.

Debit Land $200,000; Credit Cash $80,000; Credit Notes Payable $120,000.

Debit Land $80,000; Credit Cash $80,000.