Question 1

Match the terms with the definitions.

-Consists of the three basic accounting elements: assets = liabilities + owner's equity.

Accepted Answer

A)   account
B)   accounts payable
C)   accounts receivable
D)   accounting equation
E)   assetsF)  balance sheetG)  business entityH)  business entity conceptI)  business transactionJ)  drawingK)  expensesL)  income statementM)  liabilityN)  net incomeO)  net lossP)  notes payableQ)  owner's equityR)  revenuesS)  statement of owner's equity

Question 2

Match the terms with the definitions.

-An amount owed to a business by its customers as a result of the sale of goods or services.

Accepted Answer

A)   account
B)   accounts payable
C)   accounts receivable
D)   accounting equation
E)   assetsF)  balance sheetG)  business entityH)  business entity conceptI)  business transactionJ)  drawingK)  expensesL)  income statementM)  liabilityN)  net incomeO)  net lossP)  notes payableQ)  owner's equityR)  revenuesS)  statement of owner's equity

Question 3

____________________ is the amount by which business assets exceed the business liabilities.

Accepted Answer

Owner's equity

Question 4

According to the business entity concept,a proprietor may include nonbusiness assets and liabilities in the business entity's accounting records.

Accepted Answer

A) True 
 B)False

Question 5

It is not necessary to measure a business transaction in dollars.

Accepted Answer

A) True 
 B)False

Question 6

Match the terms with the definitions.

-Withdrawals that reduce owner's equity as a result of the owner taking cash or other assets out of the business for personal use.

Accepted Answer

A)   account
B)   accounts payable
C)   accounts receivable
D)   accounting equation
E)   assetsF)  balance sheetG)  business entityH)  business entity conceptI)  business transactionJ)  drawingK)  expensesL)  income statementM)  liabilityN)  net incomeO)  net lossP)  notes payableQ)  owner's equityR)  revenuesS)  statement of owner's equity

Question 7

The accounting equation may be expressed as assets − liabilities = owner's equity.

Accepted Answer

A) True 
 B)False

Question 8

____________________ represent the amount a business charges customers for products sold or services performed.

Accepted Answer

The answer of ____________________ represent the amount a business charges...

Question 9

A(n)____________________ is an unwritten promise to pay a supplier for assets purchased or services received.

Accepted Answer

The answer of A(n)____________________ is an unwritten promise to pay...

Question 10

Match the terms with the definitions.

-A separate record used to summarize changes in each asset,liability,and owner's equity of a business.

Accepted Answer

A)   account
B)   accounts payable
C)   accounts receivable
D)   accounting equation
E)   assetsF)  balance sheetG)  business entityH)  business entity conceptI)  business transactionJ)  drawingK)  expensesL)  income statementM)  liabilityN)  net incomeO)  net lossP)  notes payableQ)  owner's equityR)  revenuesS)  statement of owner's equity

Question 11

The terms "profit and loss statement" or "operating statement" are sometimes used as synonyms for the balance sheet.

Accepted Answer

A) True 
 B)False  False

Question 12

An example of an expense is

Accepted Answer

A)   investments.
B)   supplies consumed.
C)   prepaid insurance.
D)   withdrawals by the owner.

Question 13

Withdrawing cash from a business entity will result in an increase in owner's equity.

Accepted Answer

A) True 
 B)False

Question 14

Match the terms with the definitions.

-Reports the profitability of business operations for a specific period of time.

Accepted Answer

A)   account
B)   accounts payable
C)   accounts receivable
D)   accounting equation
E)   assetsF)  balance sheetG)  business entityH)  business entity conceptI)  business transactionJ)  drawingK)  expensesL)  income statementM)  liabilityN)  net incomeO)  net lossP)  notes payableQ)  owner's equityR)  revenuesS)  statement of owner's equity

Question 15

Sue Lee paid $1,200 for her employees' salaries.This transaction would

Accepted Answer

A)   increase assets and decrease owner's equity.
B)   increase assets and increase liabilities.
C)   decrease assets and decrease liabilities.
D)   decrease assets and decrease owner's equity.

Question 16

A(n)____________________ is an economic event that has a direct impact on the business.

Accepted Answer

business t...

Question 17

Match the terms with the definitions.

-An economic event that has a direct impact on the business.

Accepted Answer

A)   account
B)   accounts payable
C)   accounts receivable
D)   accounting equation
E)   assetsF)  balance sheetG)  business entityH)  business entity conceptI)  business transactionJ)  drawingK)  expensesL)  income statementM)  liabilityN)  net incomeO)  net lossP)  notes payableQ)  owner's equityR)  revenuesS)  statement of owner's equity

Question 18

Meghan started her business by investing $30,000 in cash.This transaction would

Accepted Answer

A)   increase assets and increase owner's equity.
B)   increase assets and increase liabilities.
C)   increase one asset and decrease another asset.
D)   decrease assets and decrease liabilities.

Question 19

Increases to owner's equity may be from

Accepted Answer

A)   expenses that are incurred.
B)   expenses exceeding revenue for the period.
C)   withdrawals of cash from the business by the owner.
D)   revenue that is derived from sales of goods or services. D

Question 20

Match the terms with the definitions.

-An individual,association,or organization that engages in economic activities and controls specific economic resources.

Accepted Answer

A)   account
B)   accounts payable
C)   accounts receivable
D)   accounting equation
E)   assetsF)  balance sheetG)  business entityH)  business entity conceptI)  business transactionJ)  drawingK)  expensesL)  income statementM)  liabilityN)  net incomeO)  net lossP)  notes payableQ)  owner's equityR)  revenuesS)  statement of owner's equity

Exam 2: Analyzing Transactions: the Accounting Equation

Match the terms with the definitions. -Consists of the three basic accounting elements: assets = liabilities + owner's equity.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -An amount owed to a business by its customers as a result of the sale of goods or services.

Correct AnswerverifiedShow Answer

____________________ is the amount by which business assets exceed the business liabilities.

Correct AnswerverifiedOwner's equity

According to the business entity concept,a proprietor may include nonbusiness assets and liabilities in the business entity's accounting records.

Correct AnswerverifiedShow Answer

It is not necessary to measure a business transaction in dollars.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -Withdrawals that reduce owner's equity as a result of the owner taking cash or other assets out of the business for personal use.

Correct AnswerverifiedShow Answer

The accounting equation may be expressed as assets − liabilities = owner's equity.

Correct AnswerverifiedShow Answer

____________________ represent the amount a business charges customers for products sold or services performed.

Correct AnswerverifiedShow Answer

A(n)____________________ is an unwritten promise to pay a supplier for assets purchased or services received.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -A separate record used to summarize changes in each asset,liability,and owner's equity of a business.

Correct AnswerverifiedShow Answer

The terms "profit and loss statement" or "operating statement" are sometimes used as synonyms for the balance sheet.

Correct AnswerverifiedFalse

An example of an expense is

Correct AnswerverifiedShow Answer

Withdrawing cash from a business entity will result in an increase in owner's equity.

Correct AnswerverifiedShow Answer

Match the terms with the definitions. -Reports the profitability of business operations for a specific period of time.

Correct AnswerverifiedShow Answer

Sue Lee paid $1,200 for her employees' salaries.This transaction would

Correct AnswerverifiedShow Answer

A(n)____________________ is an economic event that has a direct impact on the business.

Correct Answerverifiedbusiness t...View AnswerShow Answer

Match the terms with the definitions. -An economic event that has a direct impact on the business.

Correct AnswerverifiedShow Answer

Meghan started her business by investing $30,000 in cash.This transaction would

Correct AnswerverifiedShow Answer

Increases to owner's equity may be from

Correct AnswerverifiedD

Match the terms with the definitions. -An individual,association,or organization that engages in economic activities and controls specific economic resources.

Correct AnswerverifiedShow Answer

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Owner's equity

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False

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business t...
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D

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