Question 1

Withdrawals by the owner are reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 2

The transactions listed below took place at the Mitchell Advertising Agency.These transactions affected the following accounts.Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.  Had a computer repaired;payment is due in 30 days

Accepted Answer

plus Expen...

Question 3

When using the fundamental accounting equation,an accountant must make sure that total assets are always equal to total liabilities and owner's equity.

Accepted Answer

A) True 
 B)False

Question 4

The net income or net loss for the period is shown on both the income statement and the balance sheet.

Accepted Answer

A) True 
 B)False

Question 5

If a business receives $5,000 on account from clients who owed money for services previously billed,identify the effect on the accounting equation

Accepted Answer

A)   assets decrease and liabilities increase.
B)   liabilities decrease and owner's equity decreases.
C)   assets remain the same and owner's equity remains the same.
D)   owner's equity increases and revenue increases.E) A) and D)
F) None of the above

Question 6

The ____________________ is the financial report that shows the assets,liabilities,and owner's equity of a business on a specific date.

Accepted Answer

The answer of The ____________________ is the financial report that...

Question 7

If a business issues a check for $100 to purchase office supplies,analyze the effect on the accounting equation.

Accepted Answer

A)   Financial Interest will increase
B)   Property will decrease
C)   Financial Interest will decrease
D)   Total Property will remain the sameE) B) and D)
F) A) and C)

Question 8

The income statement is also known as the profit and loss statement.

Accepted Answer

A) True 
 B)False

Question 9

When revenue is greater than expenses,the result is a net ___________________.

Accepted Answer

The answer of When revenue is greater than expenses,the result...

Question 10

A business transaction is a financial event that affects the resources of a business.

Accepted Answer

A) True 
 B)False

Question 11

Funds taken from the business by the owner for personal use are called ___________________.

Accepted Answer

The answer of Funds taken from the business by the...

Question 12

At the end of the first month of operations for Jackson's Catering Service,the business had the following accounts: Cash,$19,000;Prepaid Rent,$500;Equipment,$5,000 and Accounts Payable $2,000.By the end of the month,Jackson's had earned $20,000 of Revenues,$1,000 of Utilities Expenses and $1,500 of Salaries Expenses.Calculate the net income to be reported by the company for this first month.

Accepted Answer

A)   $20,000
B)   $19,000
C)   $17,500
D)   $12,000E) None of the above
F) B) and C)

Question 13

The amount of net income or net loss is needed to complete the statement of owner's equity.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing Business Transactions

When using the fundamental accounting equation,an accountant must make sure that total assets are always equal to total liabilities and owner's equity.

Correct Answer
verified

When revenue is greater than expenses,the result is a net ___________________.

Correct Answer
verified

The transactions listed below took place at the Mitchell Advertising Agency.These transactions affected the following accounts.Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. Had a computer repaired;payment is due in 30 days

Correct Answer
verified
plus Expen...
View Answer

If a business receives $5,000 on account from clients who owed money for services previously billed,identify the effect on the accounting equation

Correct Answer
verified

The net income or net loss for the period is shown on both the income statement and the balance sheet.

Correct Answer
verified

Funds taken from the business by the owner for personal use are called ___________________.

Correct Answer
verified

The amount of net income or net loss is needed to complete the statement of owner's equity.

Correct Answer
verified

Withdrawals by the owner are reported on the income statement.

Correct Answer
verified

The income statement is also known as the profit and loss statement.

Correct Answer
verified

The ____________________ is the financial report that shows the assets,liabilities,and owner's equity of a business on a specific date.

Correct Answer
verified

A business transaction is a financial event that affects the resources of a business.

Correct Answer
verified

Correct Answer
verified

If a business issues a check for $100 to purchase office supplies,analyze the effect on the accounting equation.

Correct Answer
verified

Exam 2: Analyzing Business Transactions

When using the fundamental accounting equation,an accountant must make sure that total assets are always equal to total liabilities and owner's equity.

Correct AnswerverifiedShow Answer

When revenue is greater than expenses,the result is a net ___________________.

Correct AnswerverifiedShow Answer

The transactions listed below took place at the Mitchell Advertising Agency.These transactions affected the following accounts.Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. Had a computer repaired;payment is due in 30 days

Correct Answerverifiedplus Expen...View AnswerShow Answer

If a business receives $5,000 on account from clients who owed money for services previously billed,identify the effect on the accounting equation

Correct AnswerverifiedShow Answer

The net income or net loss for the period is shown on both the income statement and the balance sheet.

Correct AnswerverifiedShow Answer

Funds taken from the business by the owner for personal use are called ___________________.

Correct AnswerverifiedShow Answer

The amount of net income or net loss is needed to complete the statement of owner's equity.

Correct AnswerverifiedShow Answer

Withdrawals by the owner are reported on the income statement.

Correct AnswerverifiedShow Answer

The income statement is also known as the profit and loss statement.

Correct AnswerverifiedShow Answer

The ____________________ is the financial report that shows the assets,liabilities,and owner's equity of a business on a specific date.

Correct AnswerverifiedShow Answer

A business transaction is a financial event that affects the resources of a business.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a business issues a check for $100 to purchase office supplies,analyze the effect on the accounting equation.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
plus Expen...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified