Quiz 1, 10 questions (100%)

1. Who is responsible for preparing a company’s financial statements?

The Financial Accounting Standards Board
The audit committee of the Board of Directors
Company management
The company's external auditor
The company's tax department
1 point

2. Which of the following is an asset? (check all that apply)

Cash
Common Stock
Prepaid Rent
Notes Payable
Retained Earnings
1 point

3. What are Revenues in the table below?

Total Assets 300
Total Liabilities 160
Total Stockholders' Equity
Beginning Retained
50
Earnings
Ending Retained Earnings 60
Dividends 15
Revenues ?
Expenses 100
Net Income
Cash 30
140
110
40
Not enough information
125
1 point

4. Which of the following transactions violates the balance sheet equation? (check all that apply)
Increase cash and reduce a liability
 Increase cash and increase an expense
Increase revenues and reduce a liability
Reduce cash and reduce a liability
Increase cash and reduce inventory (a non-cash asset)
1 point

5. Which of the following are assets? (check all that apply)

Retained Earnings
Accounts Receivable
Accounts Payable
Cash
Common Stock
1 point

6. Which of the following accounts would be increased with a Credit? (check all that apply)
Additional Paid-in Capital
Prepaid Rent
Notes Payable
Inventory
Revenue
1 point

7. Which of these journal entries represent paying cash to reduce a liability? (check all that
apply)
Dr. Cash                   1000
    Cr.   Notes Payable          1000

Dr. Income Taxes Payable       500

    Cr.      Cash                                  500

Dr.  Cash               300

     Cr.  Accounts Payable     300

Dr. Retained Earnings     500

     Cr.  Cash                         500

Dr.  Land           100

    Cr.  Cash           100
1 point

8. Which journal entry reflects the following transaction?:

BOC bought a $300,000 building with $50,000 cash and a mortgage taken from a bank.

Dr.  Building           300,000

      Cr.  Mortgage      250,000

      Cr.  Cash              50,000

Dr.  Mortgage      250,000

Dr.  Cash              50,000

        Cr.  Building           300,000

Dr.  Cash              50,000

        Cr.  Building           300,000

Dr.  Building           300,000

      Cr. Cash                 50,000

Dr.  Building           300,000

      Cr. Cash                 300,000
1 point

9. Which journal entry reflects the following transaction?:

BOC bought $10,000 of inventory on account.

Dr. Accounts Payable          10,000

   Cr.  Inventory                                  10,000

Dr. Inventory          10,000

   Cr. Accounts Payable  10,000

Dr. Accounts Receivable          10,000

   Cr.  Inventory                                  10,000

Dr. Inventory          10,000

   Cr. Accounts Receivable 10,000

Dr. Inventory          10,000

   Cr. Cash                         10,000
1 point

10. Which journal entry reflects the following transaction?:

BOC declared a $9,000 dividend to be paid in cash next month.
 Dr.  Retained Earnings           9,000
   Cr.  Dividends Payable             9,000

Dr.  Dividends Payable          9,000

   Cr.  Dividends Expense           9,000

Dr.  Dividend Expense       9,000

    Cr.  Cash                           9,000

Dr.  Dividend Expense             9,000

   Cr.  Dividends Payable               9,000

Dr.  Retained Earnings           9,000

   Cr.  Cash                                  9,000