Saint Leo MBA 560 quiz 1

1. The claims of a business’s creditors are called: (Points : 2) assets.
liabilities.
equity.
revenue.

Question 2. 2. ABC Company experienced an accounting event that affected its financial statements as indicated below: Assets = Liab. + Equity Rev. - Exp. = Net. Inc. Cash Flow + NA + + NA + NA Which of the following accounting events could have caused these effects on ABC's financial statements? (Points : 2) Earned revenue on account Purchased equipment on account Provided services to customers for cash Recognized accrued salaries owed to employees

Question 3. 3. Rowena Company spent cash to purchase equipment. As a result of this event: (Points : 2) total liabilities increased. total assets increased. net income increased. total assets were unchanged.

Question 4. 4. An element that is often present when fraud occurs is: (Points : 2) the availability of an opportunity. the existence of some form of pressure. the ability to rationalize. all of the above.

Question 5. 5. Which financial statement reports the results of a business’s operations? (Points : 2) Income statement Statement of changes in equity Balance sheet Statement of cash flows

Question 6. 6. At the end of the accounting period, Sefcik Company made an adjusting entry for supplies consumed. Which of the following choices reflects how this event would affect the company's financial statements? Row Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow One + - = NA + NA NA - + = - NA Two - = NA + - NA - + = - NA Three - = - + NA NA - NA = NA NA Four + - = NA + NA NA - NA = NA + IA (Points : 2) Row One Row Two Row Three Row Four

Question 7. 7. Expenses are shown on the: (Points : 2) income statement. statement of changes in stockholders’ equity. balance sheet. all of the above.

Question 8. 8. Which of the following transactions is an asset use transaction? (Points : 2) Payment of cash dividends to owners Paying cash to acquire furniture Acquiring cash by issuing stock to owners Providing services to customers for cash

Question 9. 9. Which of the following accounts would not appear on a balance sheet? (Points : 2) Equipment Interest Payable Interest Revenue Retained Earnings

Question 10. 10. Recognition of revenue may result in which of the following? (Points : 2) A decrease in a liability An increase in a liability An increase in assets Both A and C

Question 11. 11. As of December 31, 2009, Bueno Company had $1,000 in liabilities, $8,000 in common stock, and $2,500 in retained earnings. The total amount of assets on that date is: (Points : 2) $10,000 $12,500 $11,500 $7,500

Question 12. 12. Ohio Company provided services to a customer for $1,700 cash. As a result of this event: (Points : 2) total assets decreased. total liabilities increased. retained earnings increased. cash flows from financing activities increased.

Question 13. 13. The result of the matching process is reported on which financial statement? (Points : 2) Balance Sheet Income Statement Statement of Changes in Stockholders’ Equity Statement of Cash Flows

Question 14. 14. Accounting information focused on the needs of external users is: (Points : 2) financial accounting. managerial accounting. claims accounting. not-for-profit accounting.

Question 15. 15. The amount of land owned by a business appears on which financial statement? (Points : 2) Income statement Statement of changes in stockholders’ equity Statement of cash flows Balance sheet

Question 16. 16. Which of the following is an asset source transaction? (Points : 2) Purchased machine by issuing a note payable Paid a cash dividend to stockholders Purchased equipment for cash Collected cash from an account receivable

Question 17. 17. Accounting information is said to be reliable if: (Points : 2) it is based on recent (not longer than 6 months) information. it was prepared by someone with good credentials in accounting, such as a certified public accountant. it can be independently verified. it complies with rules and standards of the Internal Revenue Service.

Question 18. 18. Which of the following would be included in the "cash flows from financing activities" section of the statement of cash flows? (Points : 2) Collected cash from accounts receivable Finance Company loaned cash to another company Paid cash dividend to stockholders Purchased business insurance

Question 19. 19. Which of the following lists represents the correct sequence of stages in an accounting cycle? (Points : 2) Record transactions, prepare statements, adjust accounts, and close temporary accounts Prepare statements, close temporary accounts, record transactions, and adjust accounts Close temporary accounts, record transactions, prepare statements, and adjust accounts Record transactions, adjust accounts, prepare statements, and close temporary accounts

Question 20. 20. Which of the following accounts is a permanent account (an account that is not closed)? (Points : 2)

Prepaid Insurance
Service Revenue
Salaries Expense
Rent Expense