1. A decision whether to borrow money or sell stock is an example of (Points : 2
ID: 2360650 • Letter: 1
Question
1.
A decision whether to borrow money or sell stock is an example of
(Points : 2)
2.
3.
(Points : 2)
$20,000 $0
>$20,000 $5,000
$15,000 $5,000
$15,000 $0
4.
A transaction is
(Points : 2)
5.
Revenues are recorded when a business
(Points : 2)
6.
Liabilities are amounts invested in an organization by its owners.
(Points : 2)
True
False
7.
Which of the following financial statements reports the resources available for use in the transformation process and claims to those resources at a point in time?
(Points : 2)
8.
9.
The operating activities of a business are critical to its ongoing success.
(Points : 2)
True
False
10.
The record that reflects changes in dollar amounts associated with a specific resource or activity is referred to as a(n)
(Points : 2)
11.
What effect do revenues and expenses eventually have on Retained Earnings?
Revenues Expenses
(Points : 2)
12.
Investing decisions involve choices about when and where to obtain financial resources and the amount needed.
(Points : 2)
True
False
13.
Which of the following is not an asset?
(Points : 2)
14.
15.
16.
17.
Match the event below to the proper category of activity.
Operating Activity Financing Activity
(Points : 2)
18.
Accounting can be described as a link between business activities and business decisions.
(Points : 2)
True
False
19.
The sale of equipment is a financing activity.
(Points : 2)
True
False
20.
A balance among the elements of the accounting equation must maintained at all times.
(Points : 2)
True
False
1.
A decision whether to borrow money or sell stock is an example of
(Points : 2)
a financing decisionan investing decision
an operating decision
a future decision
Explanation / Answer
A decision whether to borrow money or sell stock is an example of (Points : 2) a financing decision 2. Which of these is NOT an expense? (Points : 2) cost of goods sold 3. (Points : 2) After months of planning, Alana opened a Natural Foods store on April 1 by investing $15,000 of her own money. She spent $10,000 on furnishings and fixtures that had been delivered and set up the night before. A friend had loaned Alana $5,000 which she used to purchase inventory prior to opening. When Alana opened for business on April 1, her accounting system should have contained what balances for total assets and total liabilities? Total Assets Total Liabilities $20,000 $5,000 4. A transaction is (Points : 2) an event that causes increases or decreases in an account balance 5. Revenues are recorded when a business (Points : 2) creates resources by selling goods or services 6. Liabilities are amounts invested in an organization by its owners. (Points : 2) False 7. Which of the following financial statements reports the resources available for use in the transformation process and claims to those resources at a point in time? (Points : 2) the balance sheet 8. During an accounting period, total assets increased by $500 while owners' equity increased by $800. The change in total liabilities during this period must have been a (Points : 2) $300 decrease 9. The operating activities of a business are critical to its ongoing success. (Points : 2) True 10. The record that reflects changes in dollar amounts associated with a specific resource or activity is referred to as a(n) (Points : 2) transaction 11. What effect do revenues and expenses eventually have on Retained Earnings? Revenues Expenses (Points : 2) increase decrease Match the event below to the proper category of activity. Operating Activity (Points : 2) paying employee salaries refunding a customer's money Financing Activity paying off a bank loan obtaining a loan designing a new product paying off a bank loan Investing activity buying factory equipment buying new tools 18. Accounting can be described as a link between business activities and business decisions. (Points : 2) True 19. The sale of equipment is a financing activity. (Points : 2) False 20. A balance among the elements of the accounting equation must maintained at all times. (Points : 2) True
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