Chapter 01 – Accounting and Business
Copyright Cengage Learning. Powered by Cognero.
Page 41
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.01–04 – LO: 01–04
STATE STANDARDS:
United States – OH – ICPA: FN-Measurement
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
TOPICS:
Bloom’s: Understanding
DATE CREATED:
7/26/2017 4:27 PM
DATE MODIFIED:
10/16/2017 3:33 PM
102. Land, originally purchased for $30,000, is sold for $62,000 in cash. What is the effect of the sale on the accounting
equation?
a.
assets increase by $62,000; stockholders’ equity increases by $62,000
b.
assets increase by $32,000; stockholders’ equity increases by $32,000
c.
assets increase by $62,000; liabilities decrease by $30,000; stockholders’ equity increases by $32,000
d.
assets increase by $30,000; no change in liabilities; stockholders’ equity increases by $62,000
ANSWER:
b
RATIONALE:
Net change in assets = Increase in cash – Decrease in land = $62,000 – $30,000 =
+$32,000
Change in stockholders’ equity = +$32,000
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Applying
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.01–04 – LO: 01–04
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.ACBSP.APC.13 – Long-term Assets Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/26/2017 4:27 PM
DATE MODIFIED:
10/16/2017 3:33 PM
103. Which of the following accounts is a liability?
a.
Accounts Payable
b.
Accounts Receivable
c.
Wages Expense
d.
Service Revenue
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.01–04 – LO: 01–04
Chapter 01 – Accounting and Business
Copyright Cengage Learning. Powered by Cognero.
Page 45
b.
plan advertising for upcoming sale
c.
give employees a raise beginning next month
d.
submit estimate for construction project
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.01–04 – LO: 01–04
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/26/2017 4:27 PM
DATE MODIFIED:
10/16/2017 3:33 PM
111. The financial statement that presents a summary of the revenues and expenses of a business for a specific period of
time, such as a month or year, is called a(n)
a.
prior period statement
b.
statement of stockholders’ equity
c.
income statement
d.
balance sheet
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.01–05 – LO: 01–05
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.ACBSP.APC.09 – Financial Statements
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/26/2017 4:27 PM
DATE MODIFIED:
10/16/2017 3:33 PM
112. Which of the following financial statements reports information as of a specific date?
a.
income statement
b.
statement of stockholders’ equity
c.
statement of cash flows
d.
balance sheet
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
